New Delhi: A cyberattack on technology service provider C-Edge Technologies has disrupted banking operations for approximately 300 small banks and financial institutions across India. Customers of these institutions, primarily cooperative and regional rural banks, have been unable to access banking services, including ATM withdrawals and UPI transactions.
According to officials, the issue arose from a security breach detected in C-Edge Technologies’ systems. The breach has caused significant operational challenges for banks that rely on this joint venture between the State Bank of India (SBI) and Tata Consultancy Services (TCS). While efforts are underway to restore normal services, other banking operations continue to function without disruption.
Dilip Sanghani, Chairman of the National Cooperative Union of India, confirmed that around 300 banks, including 17 district cooperative banks in Gujarat, have been affected by these technical issues since July 29. He noted that the service disruption has persisted for two to three days, with C-Edge Technologies attributing the problems to a technical glitch. In response, C-Edge has taken necessary precautions, including disassembling parts of their system to protect larger payment infrastructures.
The attack is suspected to involve ransomware, a type of malware that encrypts files on infected systems and demands a ransom for their release. Ransomware attacks have been a significant global threat, with notable incidents like the WannaCry attack in May 2017, which affected over 200,000 systems worldwide, including in India. These attacks typically demand payments in cryptocurrencies like Bitcoin to unlock the compromised systems.
In India, ransomware attacks have previously targeted critical infrastructure. For instance, in 2018, Uttar Haryana Bijli Vitran Nigam’s head office in Panchkula received a message demanding a Rs 1 crore ransom, which had to be paid in Bitcoin. Similarly, in 2019, state power utilities in Telangana and Andhra Pradesh experienced ransomware attacks, leading to system disruptions until the issues were resolved.
As the situation develops, C-Edge Technologies and affected banks are working to mitigate the impact of the cyberattack and restore full banking services to their customers. Authorities are urging the public to remain vigilant and report any suspicious activities related to their banking accounts.
Preventive Measures and Future Implications
The incident highlights the growing threat of cyberattacks on financial institutions and the critical need for robust cybersecurity measures. As digital banking services become more prevalent, the risks associated with cyber threats also increase. This attack serves as a reminder for all institutions to enhance their cybersecurity frameworks and for customers to remain cautious of potential security threats.
The ongoing investigation will likely provide further insights into the nature of the breach and the methods used by the attackers. Meanwhile, financial regulators and cybersecurity experts are expected to issue additional guidelines to prevent similar incidents in the future.
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