Cosmos Bank Made it Possible to Recover Hacked Money

NP NEWS NETWORK

Pune-based Cosmos Bank had lost Rs 94 crore in online fraud by the hacking of bank’s system. Pune police’s special investigation branch has made it possible to recover some amount.

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When the server of bank was hacked, many regular customers’ accounts were witnessed to have received the more amount than the actual balance they had. The bank has the record of the transactions they did and based on that, more recovery can be made, said sources.

Bank has recovered Rs 1 lakh 10 thousand from two of their regular customers. From one of him, they have got Rs 90 thousand amount and from another, Rs 20 thousand has been recovered.

This digital fraud was made possible by hackers because of a malware attack on the bank’s system. Malware is a malicious software which can be sent as a link to the target. Once the target clicks on the link, it can install executable codes and scripts.

Malware includes computer viruses, worms, Trojan horses, and spyware. These malicious programs can perform a variety of functions, including stealing, encrypting or deleting sensitive data, altering or hijacking core computing functions and monitoring users’ computer activity without their permission.

It can be normally avoided by using anti-malware or antivirus software or firewalls. In this case, the malware compromised a digital system responsible for settling cash dispensation requests raised at ATMs. As soon as one swipes a card, a request is transferred to the core banking system (CBS) of the bank. If the account has enough money, the CBS will allow the transaction.

These are suspected to have been done with “cloned cards”, although a senior source at National Payment Corporation of India (NPCI) said that this is not certain at this stage. Cloned debit and credit cards have been used in several cybercrimes.

The fraudster collects the card details. these are sometimes even sold over the darknet, a network with restricted access and uses a machine to copy these on dummies, or blank plastic cards.

RBI guidelines say that if banks are at fault, they are liable to pay customers.