Hackers may bring down the banks, warns network boss

Hackers may bring down the banks

The head of the network that connects the world's banks has issued a warning: Hackers can strike once more, and that they may bring down a bank.

The message from SWIFT chief executive officer Gottfried Leibbrandt follows cyberattacks on banks in Asian country, Vietnam and Ecuador within which similar strategies were accustomed circumvent native security systems.

The attack on Bangladesh's financial organisation yielded $101 million, whereas Ecuadorian bank Banco del Austro was hit for $12 million.

Leibbrandt steered in a very speech on Tues that alternative attacks might have gone unreported.

"The Asian country fraud isn't AN isolated incident: we tend to square measure awake to a minimum of 2, however presumably additional, alternative cases wherever fraudsters used constant process, albeit while not the spectacular amounts," he said.

Related: industry fears hackers will too simply attack the world financial set-up

SWIFT, or the Society for Worldwide Interbank money Telecommunication, has already warned customers that the attacks seem to be "part of a wider and extremely adjustive campaign."

1. In every case, the criminals followed constant basic pattern:
2. Attackers used malware to bypass a bank's native security systems.
3. They gained access to the SWIFT electronic messaging network.
4. Fraudulent messages were sent via SWIFT to initiate money transfers from accounts at larger banks.

Leibbrandt aforesaid the tactic is far additional serious than a typical knowledge breach or felony of client data. Instead, the loss of management over payment channels may bring down a bank.

"In the recent cases, thieves were ready to move some of these banks' overseas assets," he said. "As a result, for the banks involved, the events haven't been existential. the purpose is that they may are."

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The attacks underscore the vulnerability of smaller banks that cannot afford fashionable  defenses. If hackers square measure ready to burgled a weaker bank, they'll fabricate transfer requests so as to drag cash out of a much bigger bank.

In the case of Asian country Bank, hackers used the manoeuvre to transfer cash out of its accounts at the big apple Fed. Investigators have however to in public establish any suspects within the case. Banco del Austro's funds were being control in accounts at Wells city (WFC).

SWIFT is taking further measures to secure shopper banks, as well as sharing additional data, supporting security audits and introducing harder needs for native bank laptop networks, Leibbrandt aforesaid.

SWIFT's network and core electronic messaging services haven't been compromised by the attacks, he added.