As the Government is encouraging more Indians to move for the online banking, the cyber security is battling hard to keep the online banking safe, so that no one could suffer.
In July 2016, the Government-owned Union Bank of India suffered the biggest hack of $ 171 million.
In the month of July, a Union Bank of India official in the treasury department looking at SWIFT payments was checking statements for the day from their dollar account, when he noticed an unexpected deviation. $ 171 million amount was debited from the bank without his authoritisation.
He immediately informed the bank management about it and said “I haven’t authorized any such payment last night.”
Arun Tiwari, Chairman of the Union Bank of India and the India’s cyber security chief, Dr.Gulshan Rai who were involved in the operation said that the operation was a serious one and all the money have been retrieved .
Dr. Rai said “We worked in record time with the Reserve Bank of India, bank authorities and government agencies coordinating efforts. The bank succeeded in blocking the transfer of funds and credited the entire amount in a record period of six days.” He is the country’s first Chief Information Security Officer.
“Investigations have been carried out by different agencies. And whatever was suggested to improve security, has been implemented,” Mr. Tiwari said.
The Reserve Bank of India has strictly asked banks to put stricter systems in place so that such things do not happen again.
RBI deputy governor S.S. Mundra said that, “We have already witnessed an attempt to defraud a bank by abusing the SWIFT messaging system which thankfully could be salvaged post event without any apparent monetary loss. We also continue to receive information on several other cyber incidents, be it ransomware attack, ATM / Debit card incidents or unauthorised access to bank servers.”