A bank in the Indian state of Gujarat lost more than Rs70 million (approximately BD276,000) over a weekend after scammers exploited security gaps in its core banking system using a phishing email.
The incident occurred at the Bhavnagar District Co-operative Bank headquarters in February. While the bank was closed over the weekend, the scammers transferred a massive sum of money to 127 different accounts, pulling off a bold cyber heist that was only discovered when the branch reopened on Monday.
According to investigators, a six-member gang allegedly planted malware in the bank’s system through an infected email attachment about six months ago. This malware eventually penetrated the bank’s Core Banking System (CBS) - the central infrastructure of the financial institution.
The suspects allegedly took control of four accounts with low balances by changing the registered phone numbers. They then altered the figures by adding ghost entries, generating a spoofed balance of more than 73 million rupees. Finally, they stole the real money by transferring the fabricated funds to 127 mule accounts.
Authorities at the Cyber Centre for Excellence investigated the complex scheme and have since arrested all six suspects across several Indian states.
Investigators noted that a weak core banking system and cybersecurity deficiencies facilitated the Trojan horse malware.
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