Cyber attacks on Banking system; FIA steps in to counter attacks

As cyber attacks on the country’s banking system increase at an alarming rate, sporadic SMS messages sent to account holders are clearly insufficient and do not absolve the banks of their responsibility to protect their customers and clients.

The high command of the Federal Investigation Agency (FIA) have devised a strategy to launch a crackdown on telecom hackers involved in the transfer of a large number of clients from various banks into their bogus accounts, according to the FIA.

Hacking gangs are active in the country, transferring bank clients using virtual technology to obtain personal identification numbers (PIN). In any case, fraudulent gangs obtain secret indicators of bank clients after tracing secrets of their bank accounts on phones while posing as their bankers and easily transferring large sums to their accounts. “The hackers are operating their system from abroad or from remote areas of the country,” an FIA officer said when asked why the sensitive issue of hacking was being ignored.

The SBP has recently taken several steps to strengthen its anti-money laundering (AML) efforts, as well as regulatory and supervisory measures to improve bank controls to prevent digital and social engineering fraud.

In addition to improved controls at financial institutions and increased customer awareness, effective criminal investigation and prosecution were required to significantly reduce incidences of money laundering, digital fraud, and cyber attacks.

For several years, telecommunication fraud has been causing severe financial losses to customers in the billions of rupees.

Hackers are tampering with the banking organism’s entire financial telecom system by gaining access to account holders’ secret information and transferring large sums in their banks, even in foreign countries.