SBM security system was breached, says bank official

The series of messages customers of State Bank of Mysore received on Sunday.  

A possible system failure due to hacking of the online banking system on Sunday may have resulted in a large number of customers of State Bank of Mysore losing their money to online fraudsters, bank officials in Bengaluru have ascertained.

Acknowledging that there was indeed breach of the security system, a senior bank official told The Hindu, “It looks like the work of the hacker, and we are working to find out more on the breach.” He said that the bank was in the process of refunding the money lost by customers over the next few days.

The official, however, did not divulge whether the bank’s server had been targeted by an external source or the quantum of money lost to the online fraudsters, or even the extent of damage done to the bank.

“The bank has sought police help in the matter and investigations will ascertain what exactly happened. The banking system is in order now and normal operations are under way and there is no need for panic,” the officer added.

“We have been promised that the money will be refunded to our online accounts by Wednesday. We have to wait and see,” said Puspa Krishnamoorty, who approached the Horamavu bank branch after losing Rs. 29,500 on Sunday.

Meanwhile, cyber experts suspect that the hacking could be the result of an indigenous programme module that penetrated the system and made numerous Rs. 49 withdrawals from various SBM customers. The account holders have been siphoned off amounts ranging from Rs. 49 to over Rs. 50,000 through the online fraud possibly orchestrated from a remote location, a source said.

The incident

On Sunday, SBM customers received a series of messages stating that Rs. 49 had been debited from their accounts multiple times. In many instances several hundred times messages came to the mobile phone, indicating that the money had been transferred to e-wallets across the country, especially in two accounts in Noida and Gurgaon, following which customers thronged the branches on Monday.

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Printable version | May 6, 2021 4:39:09 PM |

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