Info@NationalCyberSecurity
Info@NationalCyberSecurity

RBI slaps Rs 65 lakh penalty on bank for hacking breach | Hyderabad News | #hacking | #cybersecurity | #infosec | #comptia | #pentest | #hacker


HYDERABAD: Reserve Bank of India (RBI) has imposed 65 lakh penalty on AP Mahesh Cooperative Urban Bank (APMCUB) for non-compliance of the Cyber Security Framework for Primary (Urban) Cooperative Banks.
In January 2022, hackers had breached security systems of APMCUB and siphoned off 12.48 crore. Police investigation revealed the bank’s alleged negligence in implementing cyber security measures. Hyderabad police commissioner CV Anand wrote to the RBI governor, highlighting the critical security lapses and requested for the suspension of the bank’s licence to operate.
“The current legal framework did not allow for criminal negligence charges against the bank management. Nevertheless, the city police pursued the matter with the authorities, resulting in the RBI imposing a monetary penalty of 65 lakh on Mahesh Bank,” the police commissioner claimed.
According to police, as per RBI guidelines, a bank should have security measures like anti-phishing application, intrusion prevention and detection systems, real-time threat defence and management systems. “The cyber security components mandated by RBI are indispensable for safeguarding cyber landscape and found to be conspicuously absent within the bank’s cyber security infrastructure,” police said.
On January 24 , 2022, a security breach was reported by Mahesh Bank, wherein a hacker breached the bank’s systems and siphoned off 12.48 crore. “The criminal act was carried out through a series of phishing emails that were cleverly disguised and sent to bank employees. On opening these malicious emails, the employees’ systems were compromised and it led to fraudsters gaining full access to the bank’s network,” the investigators said.
Cyber crime police nabbed six offenders, including two Nigerian nationals, by sending teams to various parts of the country. RBI’s thorough cyber audit and police investigation into the incident had revealed that the security lapses in the bank’s network to be the cause of the breach. “All banks should adhere to cyber security practices to avoid such loss of public money and crucial data,” police said.



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