india coins money

India lost $2 million in a cyber attack recently | Source: Pixabay

Hackers transfer out $2m in attack on Indian bank

CYBERCRIMINALS have transferred US$2 million from India’s City Union Bank through three unauthorized remittances to lenders based abroad via the SWIFT financial platform, the institution revealed over the weekend.

“This is basically a cyberattack by international cybercriminals,” the bank’s CEO N. Kamakodi told Reuters.

The three fraudulent remittances were sent via correspondent banks, to accounts in Dubai, Turkey, and China.

Kamakodi said there was no evidence internal staff was involved, but that it was clear account holders are part of the fraud.

The bank blocked one of the remittances for US$500,000 that was being sent through a Standard Chartered Bank account in New York to a Dubai-based lender and another transfer of EUR300,000 (US$370,110) routed through Frankfurt to Turkey.

Earlier in the week, Punjab National Bank said it had also been the victim of a US$1.7 billion fraud – however, employees of the Bank are believed to be involved in this case.

As a result of the attack, the bank plans to strengthen its internal monitoring systems and is working with authorities to fully investigate the fraud.

It’s possible that blockchain technology could have prevented the City Union attack.

Other financial institutions, such as Axis Bank and the Saudi Arabian Central Bank, have adopted blockchain technology for payment and remittance related transactions.