Cyber attack on Union Bank’s offshore accounts

“There was an attempted cyber incidence in USD Nostro Account of the bank. The money trail was promptly traced and movement of funds was blocked. Resultantly, there is no loss caused to the bank,” Union Bank informed the stock exchanges. According to the bank, a cyber security forensic audit has commenced to identify, plug any gaps and strengthen the system.

“There is no impact on the Bank’s operations. All concerned authorities have been kept informed,” it said. Union Bank stocks closed 3.36 per cent down at Rs 126.50 on the BSE.

A Nostro Account is an account denominated in a foreign currency established by a non-local bank at a local bank in the respective country of the currency desired. After a recent cyber attack on a Bangladesh central bank’s account at the New York Federal Reserve, the Reserve Bank of India last month asked Indian banks to immediately put in place a cyber security policy.

Around $81 million was stolen from the Bangladesh central bank account with the New York Fed in one of the biggest-ever cyber heists. #casansaar (The Indian Express)