CUB hit by hacking, retrieves money in two cases

By Agency Published on Feb 19, 2018 03:21 PM IST

Chennai: City Union Bank has said cyber criminals had hacked its systems and transferred nearly $2 million through three unauthorised remittances to lenders overseas via the SWIFT financial platform. The comments come after the private lender had disclosed it had discovered the three 'fraudulent remittances', which were sent via correspondent banks to accounts in Dubai, Turkey and China.

Chief executive officer N Kamakodi called it a conspiracy involving multiple countries, and added the lender was still investigating how it had happened. "This is basically a cyber attack by international cyber criminals," he said. Kamakodi added they saw 'so far no evidence of any internal staff involvement', but said, "We are very clear now the account holders are part of this conspiracy."

He further mentioned that we successfully retrieved/blocked money in two out of the three cases.

The disclosure from City Union Bank comes as India has been gripped by an announcement by Punjab National Bank earlier this week that it had been the victim of a $1.7 billion fraud, although that case is suspected to involve the transfer of unauthorised loans from bank employees.

City Union Bank said it had been able to block one of the remittances, totalling $500,000, that was being sent through a Standard Chartered Bank account in New York to a Dubai-based lender.

A second transfer of 300,000 euros ($ 372,150) was routed through a Standard Chartered Bank account in Frankfurt to a Turkish account, although the Turkish lender had blocked the transfer from being finalised.

A third, totalling $ 1 million, was sent through a Bank of America account in New York to a China-based bank, which Kamakodi identified as Zhejiang Rural Credit Cooperative Union in Hangzhou, China.