The head of the network that connects the world's banks warns that hackers will strike again, and they could bring down a bank.
The message from SWIFT CEO Gottfried Leibbrandt follows cyberattacks on banks in Bangladesh, Vietnam and Ecuador in which similar methods were used to circumvent local security systems.
The attack on Bangladesh's central bank yielded $101 million U.S., while Ecuadorian bank Banco del Austro was hit for $12 million U.S.
SWIFT, or the Society for Worldwide Interbank Financial Telecommunication, has already warned customers that the attacks appear to be "part of a wider and highly adaptive campaign."
In each case, attackers used malware to circumvent a bank's local security systems; gained access to the SWIFT messaging network, whereupon raudulent messages were sent via SWIFT to initiate cash transfers from accounts at larger banks.
Leibbrandt said the method is much more serious than a typical data breach or theft of customer information. Instead, the loss of control over payment channels could bring down a bank.
The attacks underscore the vulnerability of smaller banks that can't afford cutting-edge defenses. If hackers are able to break into a weaker bank, they can fabricate transfer requests in order to pull money out of a bigger bank.
In the case of Bangladesh Bank, hackers used the tactic to transfer money out of its accounts at the New York Fed. Investigators have yet to publicly identify any suspects in the case. Banco del Austro's funds were being held in accounts at Wells Fargo (NYSE: WFC).
SWIFT is taking additional measures to secure client banks, including sharing more information, supporting security audits and introducing tougher requirements for local bank computer networks.
For its part, Wells Fargo shares eked out a gain of 29 cents from Monday's close to $48.99 U.S., in early Tuesday trading, within a 52-week trading range of $44.50 U.S. to $58.76 U.S.
