Indian lending firm City Union Bank has suffered cyber attacks on its SWIFT financial platform where the hackers transferred nearly $2m through three unauthorised remittances.
The bank detected the fraudulent transactions during the reconciliation process where the cyber criminals entered into its system illegally.
The first remittance was made through Standard Chartered Bank, New York to a Dubai based bank for $500,000, which was blocked and returned to the bank.
The second remittance was made through Standard Chartered Bank’s Frankfurt branch to a Turkish bank for €300,000.
Valuing $1m, the third remittance was made through New York’s Bank of America to a Chinese bank where the beneficiary submitted forged documents to claim the fund.
Currently, the bank is working with the Government of India’s Ministry of External Affairs, National Cyber Security Council as well as the Consulate Generals of Shanghai and Istanbul to retrieve the amount through legal and diplomatic channels.
City Union Bank stated that SWIFT payment system has started operating again after implementing enhanced security features.
The bank also noted that it found no evidence of internal staff involvement in this incident.
This incident happened at a time when Punjab National Bank, one of the largest lending businesses in India, has been hit by a $1.7bn fraud.