Earlier this month, reports surfaced which suggested that Cosmos Bank, India’s oldest at 112 years old, had become the victim of a cyberattack which left the institution millions out of pocket.
The attack reportedly took place in two stages been August 10 – 13. According to the Hindustan Times, malware was used on the bank’s ATM server to steal the credit card information of customers, alongside SWIFT codes required for transactions.
The first wave involved the theft of roughly $11.5 million in transactions from multiple countries. In the second wave, on the same day, close to $2 million was withdrawn through debit card transactions across India.
HERE IS HOW THE FRAUD TOOK PLACE
- Hackers create a proxy switch to interact with VISA and RuPay gateway.
- They used the fake switch to approve 12,000 transactions.
- Transactions were carried out in 28 countries.
- In India alone, there were 2,800 transactions.
- Pune’s Cosmos Bank sounded an alert on Saturday (August 11) after which things were investigated.
Some experts suspect hackers were linked to an international group who were responsible for stealing $81 million from the Bangladesh Bank in 2016.
In the Bangladesh Bank case, the attackers had managed to launch a malware that hacked into the bank’s SWIFT software to transfer money.
Forensic and cyber experts are probing the lapses. Cosmos Bank meanwhile has suspended all online services and ATM transactions.
The bank has ensured customers that their money is safe. It has also clarified that their core banking system was not hit and hackers managed to hack only into the payment gateway.