Financial institutions have faced increasing challenges in securing their systems against cyber threats in recent years. One particularly insidious threat is the exploitation of glitches in a bank's core banking system, which can lead to the exposure of sensitive account details. This article delves into the modus operandi of scammers who take advantage of such glitches and explores the various attacks they may employ to commit fraudulent activities.

The Initial Glitch

A glitch can occur during routine upgrades or maintenance of the core banking system, inadvertently exposing customers' account details. This glitch can be exploited by scammers, who then proceed to harvest this exposed data for their illicit activities.

Data Harvesting and Account Takeover

Once the sensitive account information is obtained, scammers can take over accounts. This often involves resetting passwords, changing contact details, and initiating unauthorized transactions.

Types of Attacks

1. Phishing Attacks: Scammers may use the exposed data to conduct phishing campaigns, tricking customers into revealing additional information or making fraudulent transactions. Email Phishing: Sending emails that appear to be from the bank, prompting customers to click on malicious links or provide personal information. Spear Phishing: Targeting specific individuals with personalized messages increases the likelihood of success.
2. Account Takeover (ATO): Using the harvested data, scammers can attempt credential stuffing or password reset exploits to gain unauthorized access to accounts. Credential Stuffing: Using stolen credentials from other breaches to gain access to accounts. Password Reset Exploits: Using exposed information to reset account passwords and take control of accounts.
3. Social Engineering: Scammers might employ vishing or smishing techniques to extract sensitive information from customers. Vishing (Voice Phishing): Calling customers and pretending to be bank representatives to extract sensitive information. Smishing (SMS Phishing): Sending fraudulent text messages to customers, urging them to click on malicious links or provide information.
4. Fraudulent Transactions: Scammers may use compromised accounts to make unauthorized transfers or fake purchases. Unauthorized Transfers: Transferring funds from compromised accounts to accounts controlled by scammers. Fake Purchases: Using compromised accounts to make online purchases or pay for services.
5. Money Laundering: This involves recruiting money mules to withdraw and transfer stolen funds, making it difficult to trace the origins of the fraud. Using Money Mules: Recruiting individuals to transfer stolen funds to obscure the money trail through multiple accounts. Cryptocurrency Conversion: Converting stolen funds into cryptocurrencies to make tracking more difficult.
6. Data Theft and Identity Theft: Scammers may exploit stolen personal information for various fraudulent purposes, including opening new accounts or applying for loans. Personal Information Exploitation: Using stolen personal information to open new accounts, apply for loans, or commit fraud. Synthetic Identity Fraud: Combining real and fake information to create new identities for fraudulent purposes.
7. Malware and Ransomware: Scammers may deploy malware through phishing emails to access customer devices and information further. Installing Malware: Sending malware through phishing emails to gain further access to customer devices and information. Ransomware Attacks: Encrypting customer data and demanding ransom for decryption.
8. Man-in-the-Middle (MitM) Attacks: Scammers may intercept customer and bank communications to steal information or inject malicious commands. Interception: Intercepting communications between customers and the bank to steal information or inject malicious commands.

A Real-World Example

Consider a case where a bank experienced a glitch after introducing a new core banking financial system. This glitch affected many accounts, leading to significant disruptions. Subsequently, international scammers began exploiting the exposed account details to conduct their fraudulent activities.

These scammers stationed overseas advertised vehicles and other goods online. They directed victims to deposit money into local bank accounts. Once the victims deposited the money, it would be swiftly transferred, leaving them without recourse.

How Do Scammers Access These Accounts?

Scammers' access to these accounts, even while offshore, can be attributed to several factors:

• Data Harvesting: The initial glitch exposed sensitive account details, which scammers harvested and used for unauthorized access.
• Account Takeover Techniques: By leveraging the harvested data, scammers could reset passwords and change contact details, gaining control over the accounts.
• Local Collaborators: Scammers often recruit local individuals (money mules) to facilitate transactions, making it appear as though the activities are local.
• Advanced Cyber Techniques: Scammers use sophisticated methods like phishing, social engineering, and malware to extract further information and bypass security measures.

Concerns about VISA Access and Offshore Operations

The access to VISA cards and offshore operations raises additional concerns. If scammers can access VISA details, they can conduct transactions globally, making tracing and recovering funds even harder. Scammers could exploit a bank's presence in multiple countries by manipulating the banking system's international network.

Recommendations

1. Regular Security Audits: Conduct frequent and comprehensive security audits to identify and address vulnerabilities.
2. Employee Training: Implement regular training sessions to recognize and prevent phishing and social engineering attacks.
3. Advanced Cybersecurity Solutions: Invest in advanced cybersecurity technologies, such as AI-driven threat detection and response systems.
4. Customer Awareness Programs: Educate customers on recognizing phishing attempts and securing their accounts.
5. Incident Response Plan: Develop and regularly update an incident response plan to address security breaches quickly.

Cyber Security (PNG) Limited: Your Partner in Cyber Defense

At Cyber Security (PNG) Limited, we understand the complexities of protecting your financial institution from cyber threats. Our comprehensive cybersecurity services are designed to safeguard your systems and customer data from sophisticated attacks.

Our Offerings Include:

• Advanced Threat Detection: Utilizing state-of-the-art technology to identify and mitigate threats before they cause harm.
• Employee Training Programs: Tailored training sessions to help staff recognize and respond to cyber threats effectively.
• Customer Education: Providing resources and workshops to educate customers on cybersecurity best practices.

Contact Us:

Email: admin@cybersecurity.com.pg
Phone: +675 7837 3124 | +675 7473 8955

Protect your institution with the expertise of Cyber Security (PNG) Limited. We can create a safer digital environment for your customers and your business.