Imagine waking up one day to find out that all your savings have been wiped out from your bank account. This is exactly what happened to thousands of people in 2016 when a group of hackers pulled off one of the biggest bank robberies in history. The hackers managed to steal over $81 million from the Bangladesh Bank, and the incident sent shockwaves throughout the banking industry.
The Heist
The Bangladesh Bank heist was a sophisticated cyber attack that involved the use of malware to gain access to the bank’s computer systems. The hackers used a malware called “SWIFT” to infiltrate the bank’s network and gain access to the SWIFT messaging system, which is used by banks to transfer money between accounts.
Once the hackers gained access to the SWIFT system, they were able to send fraudulent transfer requests to the Federal Reserve Bank of New York, which is the bank that handles the Bangladesh Bank’s international transactions. The hackers sent a total of 35 transfer requests, each requesting between $20 million and $1 billion.
Out of the 35 transfer requests, only 5 were successful, and the hackers managed to steal a total of $81 million. The rest of the transfer requests were blocked by the Federal Reserve Bank of New York, which raised suspicions about the legitimacy of the transactions.
The Aftermath
The Bangladesh Bank heist was a wake-up call for the banking industry, which had always considered itself to be immune to cyber attacks. The incident highlighted the vulnerabilities of the SWIFT messaging system and the need for banks to improve their cybersecurity measures.
The Bangladesh Bank was heavily criticized for its lax security measures, which allowed the hackers to gain access to its computer systems. The bank’s governor, Atiur Rahman, resigned from his position following the incident.
The incident also led to a diplomatic row between Bangladesh and the United States, with Bangladesh accusing the US of not doing enough to recover the stolen funds. The US denied the allegations and said that it had done everything in its power to help Bangladesh recover the stolen funds.
The Lessons Learned
The Bangladesh Bank heist taught the banking industry several important lessons about cybersecurity. Here are some of the key takeaways:
- Invest in cybersecurity: Banks need to invest in robust cybersecurity measures to protect their computer systems from cyber attacks. This includes regular security audits, employee training, and the use of advanced security technologies.
- Monitor SWIFT transactions: Banks need to monitor SWIFT transactions closely to detect any suspicious activity. This includes monitoring for unusual transaction amounts, unusual transaction destinations, and unusual transaction times.
- Collaborate with other banks: Banks need to collaborate with other banks to share information about cyber threats and to develop best practices for cybersecurity.
Conclusion
The Bangladesh Bank heist was a wake-up call for the banking industry, which had always considered itself to be immune to cyber attacks. The incident highlighted the vulnerabilities of the SWIFT messaging system and the need for banks to improve their cybersecurity measures. Banks need to invest in robust cybersecurity measures, monitor SWIFT transactions closely, and collaborate with other banks to share information about cyber threats. By taking these steps, banks can protect themselves from cyber attacks and prevent incidents like the Bangladesh Bank heist from happening again.
