ATM Fraud: All Time Worry

Malware attack on the ATM network exposes major cyber security gaps in the banking system.

- Soumik Dey & Namrata Biji Ahuja

Hackers love unsecured connections, and that is where they like to `tap in', literally into the processes. While the recent malware attacks on ATMs across the country were not unprecedented, considering the scale and the technological possibilities of such attacks, it can be said that the banks were caught completely off guard.

It all began in June, when the Hitachi-owned software used in ATMs of Yes Bank got infected, resulting in a massive data breach that had its source in the US and China. It soon became a matter of grave concern, with alarm bells ringing even in the Prime Minister's Office.

At the PMO, Gulshan Rai, India's first cyber security chief, now has a difficult task at hand. He has to find the right balance between manoeuvring the government towards a mature response, not playing down the breach and speeding up action for cyber security. Rai's concern is that the 'first-of-its-kind breach' occurred in the backend systems of the banks and that it forced the re-issue of more than six lakh debit cards.

The finance ministry, too, has woken up to assess the preparedness of banks. Finance Minister Arun Jaitley called for an urgent meeting with representatives from the RBI and other banks on October 24. After the meeting, Jaitley said damage control was being done and that people should not panic. "The breach is contained and there are only limited number of breaches reported. As of now, there is no need for customers to be unduly worried or fear anything untoward," he said.