Banking System Hacks Prosecutions
1. Carbanak / Cobalt Gang (International, 2013–2018)
Facts:
Carbanak/Cobalt was a cybercrime group that targeted banks in over 40 countries.
They hacked into bank systems using phishing emails and malware to gain access to internal systems.
The group manipulated account balances, transferred funds to mule accounts, and withdrew over $1 billion.
Prosecution / Legal Reasoning:
Authorities coordinated internationally (Europol, FBI) to investigate the cyberattacks.
Hackers were prosecuted under computer fraud, cyber theft, and money laundering laws.
Investigations used forensic analysis of malware, money trail tracking, and IP logs.
Outcome:
Multiple arrests in Eastern Europe.
Convictions ranged from 5 to 15 years’ imprisonment depending on jurisdiction.
Significance:
Showed the international reach of cybercrime prosecution.
Highlighted the need for cross-border cooperation in banking cybercrime.
2. Bangladesh Bank SWIFT Hack (2016)
Facts:
Hackers used the SWIFT network to initiate unauthorized transfers from Bangladesh Bank’s account at the Federal Reserve Bank of New York.
They attempted to steal $951 million, successfully transferring about $81 million.
Prosecution / Legal Reasoning:
Attack involved malware installed on bank systems to alter SWIFT messages.
Investigations focused on forensic IT analysis, tracing intermediary accounts in the Philippines.
Charges included fraud, unauthorized computer access, and international money laundering.
Outcome:
Several individuals connected to casinos in the Philippines were prosecuted.
Some accomplices arrested, but many perpetrators remained unidentified internationally.
Significance:
Demonstrated vulnerabilities in interbank payment networks.
Led to SWIFT issuing stronger security guidelines and banks enhancing cybersecurity protocols.
3. RBS / NatWest Hack (UK, 2016–2018)
Facts:
Hackers gained access to the Royal Bank of Scotland’s internal systems and online banking.
Stolen funds were siphoned from multiple accounts of customers.
Prosecution / Legal Reasoning:
Prosecution under UK Computer Misuse Act 1990 and Fraud Act 2006.
Evidence included IP tracking, malware analysis, and surveillance of money transfers.
Outcome:
Hacker was convicted and sentenced to 6 years’ imprisonment.
Bank reimbursed affected customers as per regulatory requirements.
Significance:
Highlighted UK legal framework for prosecuting cyberattacks against banks.
Reinforced the role of computer misuse laws in banking security.
4. Carbanak Variant “Fin7” Hackers (US, 2015–2020)
Facts:
Fin7 targeted financial institutions, including banks and restaurant chains, to steal card data and banking credentials.
Hackers used phishing emails to deploy malware.
Prosecution / Legal Reasoning:
Charges included wire fraud, bank fraud, conspiracy, and computer intrusion.
FBI used undercover operations and international intelligence sharing.
Outcome:
Several hackers arrested in the US and sentenced to up to 10 years in prison.
Coordination with foreign authorities led to arrests in Europe.
Significance:
Showed evolution of banking malware targeting card and account information, not just internal bank transfers.
Demonstrated effectiveness of joint law enforcement and cybersecurity measures.
5. Cosmos Bank Hack, India (2018)
Facts:
Hackers exploited malware and compromised ATM switch servers to withdraw ₹94 crore (~$13 million) from ATMs globally in a single day.
Attack affected 28,000 debit cards across India.
Prosecution / Legal Reasoning:
Indian authorities charged hackers under Information Technology Act 2000 (Sections 43, 66), Indian Penal Code (IPC) for fraud and criminal conspiracy.
Investigators traced ATM withdrawals to multiple states and foreign countries.
Outcome:
Several Indian and foreign hackers identified; some extradited from Europe and Asia.
Case ongoing in various courts; some initial arrests resulted in prison terms.
Significance:
First major cross-border ATM malware hack in India.
Highlighted vulnerabilities in banking networks and the need for coordinated cybersecurity law enforcement.
6. RBI Phishing Attack Case (India, 2017)
Facts:
Hackers sent phishing emails to RBI employees to access internal banking systems.
Attempted to gain credentials to transfer funds and access sensitive banking data.
Prosecution / Legal Reasoning:
Investigated under Information Technology Act, Sections 66, 66C, and 66D (hacking, identity theft, fraud).
Evidence included IP tracing, email logs, and forensic analysis of compromised systems.
Outcome:
Hacker arrested; charges filed under cybercrime laws.
Case reinforced RBI and banks’ internal cybersecurity protocols.
Significance:
Showed vulnerability even in central banking systems.
Demonstrated enforcement under IT Act and criminal provisions in India.
Key Takeaways Across Cases
Common Methods: Malware, phishing, ATM switch compromise, SWIFT manipulation.
Legal Tools: IT Act (India), Computer Misuse Act (UK), Wire & Bank Fraud (US), IPC provisions.
Cross-Border Nature: Many hacks involve international banks and require global coordination.
Sentencing: Imprisonment ranges from 3–15 years, depending on severity and jurisdiction.
Preventive Impact: Attacks often lead to regulatory upgrades, stronger cybersecurity, and enhanced bank protocols.
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