Banks Still Losing Money through SWIFT Attacks | Hacked: Hacking Finance
user

CCN

Banks Still Losing Money through SWIFT Attacks

Posted on .

Banks Still Losing Money through SWIFT Attacks

Introduction

This article was posted on Wednesday, 21:56, UTC.

It has been half a year since the now infamous bank heist that saw the Bangladesh Central Bank lose over $80 million from its New York Federal Reserve account. Hackers were able to exploit the bank’s lax security framework with SWIFT transfers, at the time. Things haven’t changed much, SWIFT privately disclosed to its client banks.

// -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- //

SWIFT, the co-operative owned by banks and responsible for connecting the global banking system is urging its clients to improve their security framework after privately disclosing that cyber-heists are still costing its member banks.

The attacks are fundamentally targeting the banks’ connectivity to the SWIFT messaging network, particularly those with a vulnerable security framework. Still, it’s plenty embarrassing for SWIFT, which has been in the spotlight for all the wrong reasons lately.

The financial messaging network added that many of the attacks since February have been thwarted due to the newly introduced security procedures mandated by SWIFT, following the high-profile heist. However, new cyber-heist attempts have been successful, SWIFT said.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

An excerpt from the private letter, obtained by Reuters, read:

Customers’ environments have been compromised, and subsequent attempts [were] made to send fraudulent payment instructions. The threat is persistent, adaptive and sophisticated – and it is here to stay.

The private letter, sent out to 11,000 members, did not reveal the banks who fell prey to the most recent attacks. While the letter added that banks had lost money, it did not reveal how much, either. The targeted banks had one thing in common, “they all had particular weaknesses in their local security,” SWIFT added.

Also read: Panicking SWIFT Urges Banks to Report Cyber Heists

The letter also indicated that banks around the world are being targeted. “The customers that have been targeted have varied in size and geography; used diversity connectivity methods and a range of interfaces from different vendors,” the letter stated.

Time for That Software Update

The non-profit cooperative is having a particularly hard time enforcing the new security measures among its member banks due to a lack of regulatory oversight. Since the Bangladesh heist, SIWFT developed a more stringent security process for authenticating transfer requests. Predictably, the SWIFT software has also seen updates but, amazingly, not every bank has installed it.

As a result, the private letter has issued a threat saying the network might report banks to regulators if they fail to update to the latest version of the software before the deadline on November 19.

SWIFT has repeatedly insisted that its core messaging service remains secure, pointing to the banks’ local framework for the security shortcomings that sees banks connected to the world’s financial messaging system, repeatedly targeted and exploited by malicious hackers.

Featured image from Shutterstock.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Samburaj Das

Samburaj Das

Samburaj is the contributing editor at Hacked and keeps tabs on science, technology and cyber security.

There are no comments.

View Comments (0) ...
Navigation
The team:
Dmitriy Lavrov
Analyst
Dmitriy Lavrov is a professional trader, technical analyst and money manager with 10 years of trading experience. He covers Forex, Commodities and Cryptocurrencies. He is among the top 10 most Read More
Jonas Borchgrevink
Founder
Jonas Borchgrevink is the founder of Hacked.com and CryptoCoinsNews.com. He is a serial entrepreneur, trader and investor. He shares his own personal journey on Hacked.com. // -- Discuss and ask Read More
Mate Csar
Analyst
Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive Read More
Mati Greenspan
Analyst
Senior Market Analyst at Etoro.com. // -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- // Important: Never invest Read More
Rakesh Upadhyay
Analyst
Rakesh Upadhyay is a Technical Analyst and Portfolio Consultant for The Summit Group. He has more than a decade of experience as a private trader. His philosophy is to use Read More
Pamela Meropiali
Account Manager
Pamela Meropiali is responsible for users on Hacked.com. // -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- // Read More
Joseph Young
Journalist
Joseph Young is a finance and tech journalist & analyst based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering Read More
A new study released by the Defense Science Board on…