News – Bangladesh Government to sue US Federal Reserve Bank

Jun 17, 2016 | 11:46 am

Published by | Chandan Singh

Bangladesh Government to sue US Federal Reserve Bank over $130m hack

The administration of Bangladesh is thinking about legal action against the Federal Reserve Bank of New York after $130 million was stolen from its records, with some it obviously being laundered through gambling clubs in The Philippines.

A portion of the cash, about $26.5m, was moved through records in Sri Lanka and this cash has been recouped. In any case, more than $100m is as yet missing. Authorities believe it was sent to black market cash merchants in The Philippines, who washed the cash through gambling clubs-casinos.

Mukesh Chaudhary, an Indian expert on cyber security and crime, told The Australian that while it could have been an inside job, hackers may have used “social engineering techniques” to fool employees who had ­access to the accounts.

He said the hackers may have learnt who had access to the codes and who could authorize the transfers and then set up fake email accounts and fake web pages. He said this method had been used recently in a number of large-scale frauds where money was transferred and then stolen.

Source: The Australian