“Cyber Security Loophole”- Bank Hackers “Unfettered Access” To Accounts
By: GoldCore
GoldSeek.com
Thursday, 5 March 2015
– Bank accounts at majority of banks in Britain and Ireland are vulnerable to hacking says Financial Times
– Two-step authentication process used by most banks is inadequate
– Vulnerabilities identified similar to those that were used by hackers to steal up to $1 billion across Eastern Europe
– UK regulator says bank customers must be reimbursed, banks are responsible for security
– Highlights risks to deposits and systemic risk should such vulnerabilities be exploited in cyber-warfare or indeed for monetary gain
The vulnerability of banks and the global banking system – reliant as it has become on computer systems, information technology and the internet – was highlighted yet again in an important article in the Financial Times on Tuesday which was largely ignored elsewhere.
The FT reports that it has come into possession of documents and correspondence between the Financial Conduct Authority (FCA) and a cyber security firm, Bronzeye that identify “serious security issues” at British high street banks.
“Britain’s markets watchdog, the Financial Conduct Authority, was warned last July about a loophole in the cyber security of one of Britain’s biggest banks that could give hackers unfettered access to customer accounts,” reports the FT.
Bronzeye identified a weakness in the two-step authentication process used by most banks and reported it to the FCA in July of last year. It is apparently similar to the flaw that allowed hackers to raid up to $1 billion from around 100 banks, predominantly in Eastern Europe.
Bronzeye identified one “large British bank”, the name of which was redacted in the documents, that had “22 critical vulnerabilities”. One of these flaws could “stop the bank in it’s tracks”, according to the firm.
Oddly, the bank refused to work with Bronzeye to fix the problem.
The Rest…HERE
