SBI, HDFC, Axis Bank Block 3.2 Mn Debit Cards After Security Risk

The malware-related security breach was reportedly detected in the non-SBI ATM network.

The head office of State Bank of India (SBI) in New Delhi. (Photo: Reuters)

Following a suspected security breach, the State Bank Of India (SBI) has blocked more than 6,00,000 debit cards of its customers and will issue fresh cards to them, official sources said on Wednesday.

According to reports, Finance Ministry is monitoring debit card fraud and cyber security mechanisms. They have directed all banks to replace compromised debit.

Around 2.6 million of the cards are on the Via and Mastercard platforms and 6,00,000 on RuPay and banks like HDFC, ICICI, YES Bank and Axis are among the worst-hit, as reported by Economic Times.

The breach is said to have originated in Hitach Payment Systems due to a malware introduced in them, which allowed fraudsters to steal information and funds of customers.

The Payments Council of India has ordered a forensic audit after customers complained of payments being done through their accounts from China, said NCPI Managing Director AP Hota.

Though most of the suspected fraudulent transactions happened in the Visa and MasterCard network, we thought a whole a forensic audit of the entire network will help us find out where the compromise happened.

HDFC had reportedly taken action on the matter a few weeks ago and are advising non-HDFC members to also change their ATM PIN. “We take this opportunity to reiterate that it's always prudent to change ATM PINs from time to time. It prevents misuse,” said an HDFC spokesperson.

“Accordingly, SBI has taken precautionary measures and have blocked cards of certain customers identified by the networks,” the spokesperson said, without revealing the exact number of customers who would be affected.

The SBI emphasised that its own systems have absolutely not been compromised and existing cardholders are not at any risk and can continue to use their cards as usual.

Meanwhile, SBI will issue new cards free-of-cost to the affected customers.

According to banking circles, several other banks have also experienced similar problems as a few ATMs have been hit by a malware which has a high potential to compromise customers’ data.

Official figures indicate that SBI has over 20 crore active debit cards, besides another 4.75 crore of its associate banks.

Some private banks are conducting security review by experts of its ATM networks to pre-empt any type of breaches.

(Source: IANS, Economic Times)