The Reserve Bank of India (RBI) fined AP Mahesh Cooperative Urban Bank Rs 65 lakh in a first-of-its-kind sanction for failing to comply with the Cyber Security Framework for Primary (Urban) Cooperative Banks. Following a thorough cyber audit by the RBI and an inquiry by the Hyderabad police, the apex bank fined AP Mahesh Co-operative Bank Rs 65 lakh for the serious “lapses” that allowed hackers to access the bank’s computers and steal Rs 12.48 crore.
How The Rs. 12.28 Billion Internet Robbery Occurred
On January 24, 2022, a large-scale internet bank heist occurred. Hackers got into Mahesh AP Bank’s computer systems and stole Rs 12.48 crore, which was recorded as a cybercrime. According to the police investigation, hackers targeted the bank’s employees with a number of phishing emails. Employees at banks received these emails that had malware ingeniously disguised. Cybercriminals gained complete access to the bank’s systems when employees clicked on the malicious links in these emails.
According to reports, the state cyber crime police detained six people for the Rs 12.48 crore, including two Nigerian nationals.
What The RBI and Police Investigation Showed
The results of the police inquiry exposed the bank’s apparent carelessness in putting cyber security measures in place. According to reports, the serious security flaws prompted Hyderabad police commissioner CV Anand to write to the RBI governor. He also asked for the operating license of the bank to be suspended.
The management of the bank was not subject to criminal negligence charges under the current legal system. However, the city police continued to pursue the issue with the authorities, which led to the RBI fining Mahesh Bank 65 lakh, according to the police commissioner.
According to the police, the bank lacked the necessary cybersecurity infrastructure, which, in accordance with RBI rules, includes security tools including anti-phishing software, intrusion prevention and detection systems, and real-time threat management and defence systems.
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