The cyberattack on the RTGS/NEFT transaction system of BDCC Bank in Karnataka’s Ballari District has raised concerns about the security of financial institutions in India. On January 10, 2025, hackers managed to exploit vulnerabilities in the bank’s system, leading to the theft of approximately $280,000 (₹2.34 crore) through unauthorized transfers to multiple accounts in northern India.
The incident came to light on January 13, 2025, when several customers noticed discrepancies in their transactions, particularly with unprocessed transfers. Upon further investigation, it was discovered that funds exceeding ₹5 lakh had been diverted to 25 different accounts, with account numbers and IFSC codes being altered during a routine transfer to IDBI Bank. Although the beneficiary names remained unchanged, the stolen funds were successfully redirected without raising suspicion.
In response to the cyberattack, BDCC Bank promptly suspended its RTGS/NEFT services and lodged a formal complaint with the authorities. An investigation under the Information Technology Act and relevant fraud-related sections was initiated to identify the perpetrators and hold them accountable for their actions. The incident highlights the pressing need for enhanced cybersecurity measures in financial institutions to prevent such attacks in the future.
Following the bank’s swift action, a First Information Report (FIR) was filed with the local police, marking the beginning of a thorough investigation into the cybercrime. The case was subsequently referred to the Ballari Cyber Economic Narcotics Police Station for further inquiries as part of the ongoing efforts to combat cybercrimes in the country.
This cyberattack serves as a reminder of the evolving threat landscape and the importance of robust cybersecurity protocols to safeguard sensitive financial data. As banks across India grapple with the increasing risks of cyberthreats, it is imperative for them to remain vigilant and proactive in addressing potential vulnerabilities in their systems. The collaboration between BDCC Bank and law enforcement authorities underscores the collective effort to mitigate further damage and ensure the security of customers’ funds.
In conclusion, the cyberattack on BDCC Bank’s RTGS/NEFT system underscores the urgent need for enhanced cybersecurity measures in financial institutions to thwart malicious activities and protect the integrity of the banking sector. The incident sheds light on the vulnerabilities in the current financial infrastructure and underscores the critical role of cybersecurity in safeguarding sensitive financial transactions against potential threats.