Cyber Security Breach Crackdown By Cyber Cops: AP Mahesh Co-operative Urban Bank Faces Penalty
The city police cyber crime wing has achieved an unprecedented feat, leading to the Reserve Bank of India (RBI) imposing a monetary penalty on AP Mahesh Co-operative Urban Bank in Hyderabad.
The penalty was imposed due to the bank’s blatant violation of the Cyber Security Framework for primary (Urban) Cooperative Banks.
In January of the previous year, AP Mahesh Co-operative Urban Bank Limited reported a cyber fraud incident where hackers breached the bank’s systems and unlawfully transferred Rs.12.48 crores.
Read This Story Here – Breaking News: Hackers Siphon off Rs 12.48 cr from AP Mahesh Bank
The criminals executed this act through carefully disguised phishing emails, deliberately targeting bank employees.
Upon opening these malicious emails, the unsuspecting employees unwittingly compromised their systems, granting the fraudsters unrestricted access to the bank’s network.
Following legal proceedings, the Hyderabad police successfully apprehended several individuals, including Nigerians allegedly involved in orchestrating the fraud, as part of a nationwide effort.
In a press release, the city police revealed the findings of their investigation, highlighting the bank’s apparent negligence in failing to implement necessary cybersecurity measures mandated by the RBI.
These measures include an anti-phishing application, intrusion prevention, and detection systems, and real-time threat defense and management systems.
Hyderabad City Police Commissioner CV Anand took the initiative to formally address the RBI, emphasizing the critical lapses and calling for the suspension of the bank’s operating license.
Although criminal negligence charges against the bank management were not possible under the existing legal framework, the local police continued their investigation.
As a result, the RBI imposed a monetary penalty of Rs. 65 lakhs, marking the first instance of punitive action against a banking institution for such reasons.
An extensive cyber audit conducted by the RBI, followed by the police investigation, revealed significant oversights on the part of the bank that ultimately led to the breach.