SWIFT asks its customers to help it end a string of high-profile banking frauds
Financial transaction network SWIFT called on its customers Friday to help it end a string of high-profile banking frauds perpetrated using its network.
The SWIFT network itself is still secure, it insisted in a letter to banks and financial institutions. However, some of its customers have suffered security breaches in their own infrastructure, allowing attackers to fraudulently authorize transactions and send them over the SWIFT network, it said.
That’s the best explanation so far for how authenticated instructions were sent from Bangladesh Bank to the U.S. Federal Reserve Bank of New York over the SWIFT network, ordering the transfer of almost US$1 billion. The Fed transferred around $101 million of that before identifying an anomaly in one of the instructions. Only $20 million of that has so far been recovered.