RBI Tightens Cyber Security Post Bangladesh Bank Heist

by CXOtoday News Desk    Apr 06, 2016

RBI Governor Raghuram Rajan Image Courtesy DNA Reserve Bank of India has beefed up the cyber security in the wake of the US$101 million theft from the central bank of Bangladesh. RBI Governor, Raghuram Rajan, said that the apex financial institution has reinforced the cyber security measures. 

“What happened in Bangladesh is certainly a source of concern for all of us, and we have taken some measures and are continuing to understand better what actually happened so that we can further our measures,” PTI quoted Rajan as saying in a press briefing in the national capital. 

Rajan informed that RBI has identified cyber security expert to head the central bank’s cyber security subsidiary, and soon it will start hiring people to beef up the wing. “There are various ways of getting through cyber defences, including through people rather than processes and networks,” Rajan said.

Bangladesh Bank heist is said to be the biggest financial crime in recent history where attempts were made to siphon off US$ 951 million from the bank’s account. The heist saw payments processed through the central bank’s accounts at the U.S. Federal Reserve and money was moved to the Philippines and Sri Lanka. The Hackers, however, could only managed to transfer US$ 20 million to an account in Sri Lankan whilst another US$ 81 million was transferred to accounts in the Philippines.  

The US$ 20 million in Sri Lanka was immediately sent bank to the Bangladesh account but investigators have not been able to recover the money from the Philippines as they suspect that much of it was diverted to the poorly regulated casino industry in the country. The incident loopholes in the security mechanism has sparked a dispute between Bangladesh’s central bank and its finance ministry. 

Meanwhile, Bangladesh Bank Governor, Atiur Rehman, has resigned following the scandal. According to Bangladeshi news site; Bdnews24.com, a team of Bangladeshi investigators would arrive in Sri Lanka this week to probe the scandal.