Authorities arrest suspects in relation to cyber heist carried out in Russian Central bank

  09 Dec 2016 , 17:07

Russian authorities arrested a large number of suspects in May in connection with the recently revealed electronic theft of $19 million from accounts held at the Russian central bank, an official said on Wednesday. The bank said last week that hackers had this year used fake client credentials to steal money from correspondent accounts — used to handle transactions on behalf of another bank — at the Bank of Russia.

Banks around the world are tightening the security of their messaging and money transfer networks following a number of cyberattacks – most notably the use of stolen Bangladesh Bank credentials to send SWIFT messages requesting the transfer of nearly $1 billion from its correspondent account at the New York Federal Reserve. The hackers succeeded in transferring $81 million to four accounts in Manila.

Artyom Sychyov, deputy head of the Bank of Russia’s security directorate, said the Federal Security Service, or FSB, and the Interior Ministry, which oversees the police, had run a joint operation after the Russian heist, and that “a large number of people were arrested”. He declined to give further details – but on June 1, the FSB said it had, together with the police, detained some 50 people suspected of the electronic theft of 1.7 billion rubles ($27 million) from unnamed Russian financial institutions.

The FSB and Interior Ministry did not immediately respond to questions about whether this was the operation mentioned by Sychyov. Sychyov said the attack on the central bank had been confined to third-party correspondent accounts. “The payment system of the Bank of Russia cannot in any way be implicated,” he said.

The Bank revealed the attack in a sparse passage on page 37 of a 69-page financial stability report published last Friday. It said the hackers had broken into an electronic system that gives clients access to correspondent accounts held within the Bank. It said they had attempted to steal 2.87 billion rubles ($45 million), of which 1.67 billion was later frozen or recovered.

Since the report was published, central bank officials have declined to answer detailed questions. This week, the Bank of Russia moved Sergei Moiseyev, head of the department for financial stability, which was responsible for the report, to a new job as adviser to the bank’s governor on reform of the leasing industry. The bank did not respond directly when asked if Moiseyev’s removal was linked to the publication of the information about the cyberattack.

Reuters

Russian central bank loses $31 million in cyber attack

Russian central bank cyber attack

03 Dec 2016 , 08:43


Hackers stole more than 2 billion rubles ($31 million) from correspondent accounts at the Russian central bank, the bank said on Friday, the latest example of an escalation of cyber attacks on financial institutions around the globe.

Central bank official Artyom Sychyov discussed the losses at a briefing, saying that the hackers had attempted to steal about 5 billion rubles.

Sychyov was commenting on a central bank report released earlier in the day, that told about hackers breaking into accounts there by faking a client’s credentials. The bank provided few other details in its lengthy report.

Financial regulators around the world have recently urged banks to beef up cyber security in the wake of a string of high-profile heists on banks around the world.

Fears about attacks on banks have mounted since February when unknown cyber criminals stole $81 million in funds that Bangladesh’s central bank had on deposit at the New York Fed. Law enforcement agencies around the globe are hunting for the criminals who stole the money using fraudulent wire-transfer requests sent over the SWIFT bank messaging network.

Separately, Russia said on Friday that it had uncovered a plot by foreign spy agencies to sow chaos in the country’s banking system via a coordinated wave of cyber attacks and fake social media reports about banks going bust.

Reuters