SBI has been the “mothership” in ATM scam
SBI has been the “mothership” in ATM scam:- Amid the reports of widespread debit card security breach, Congress on Sunday has demanded resignation of the Chairperson of the State Bank of India Arundhati Bhattacharya, alleging that the largest public sector bank has been the “mothership” in the scam in which altogether 19 banks have been hit.
Further demanding an inquiry into this matter, party spokesman Tom Vadakkan has expressed concern, saying that as many as 70 lakh cards have been affected in the “massive data breach” which is one of the “biggest scams”.
While insisting that the country was heading for a “major crisis” in this matter, he has also claimed a 980-page document is in the public domain and on social media revealing the details of some of the “most secret document” of the account holders
SBI, the country’s largest commercial lender, has advised the customers to use the bank’s own Automated Teller Machine (ATM) network after this security breach of around six lakh debit cards issued by the bank.
The entire case
About 30 lakh bank debit cards have suffered under threat after a security breach at a private bank’s ATM which has raised fears of potential fraud, according to media reports. Though this is just about half a percent of total cards issued in the country, this could be one the biggest security breach in the Indian banking industry, say reports.
However, the banks have advised its customers to not panic as they are taking some steps to prevent any major trouble.
According to media reports, the payment systems of Hitachi Payment Services were infested with malware that helped miscreants to steal personal information and make fraudulent transactions.
The breach might have taken place at YES Bank as Hitachi manages the bank’s ATMs, says a report. The reason why other banks became vulnerable is because YES Bank ATMs sees many third party transactions, says this report.
What is more risky is that the breach was effected in such a way that anyone who was using the bank’s ATMs in the region would risk having some data compromised, a PTI report said citing bankers.
YES Bank on its part has now “proactively undertaken some comprehensive audit of ATMs”. “There is no evidence of a breach or compromise on ATMs. We will continue to work with relevant stakeholders, including other public sector and private banks, and NPCI, to ensure utmost safety and security of ATM network and payment services which are completely safe to use,” a bank spokesperson said in a report.
Hitachi too has denied that its systems have been compromised. “I do not think it is necessary for any bank to reissue cards,” Loney Antony, MD, Hitachi Payment Services, has been quoted as saying in a report of leading daily.