Barclays Suffers Costly Cyber Attack

Barclays Suffers Costly Cyber Attack

According to a report published by KPMG- a business consultancy firm, CYBER ATTACK is more likely to cause the next systematic shock to the UK banking industry rather than a liquidity crunch. Barclays plc, the seventh largest bank in the world, stands proof to this statement. Approximately 1.3 million pound cash was siphoned off from the accounts of Barclays’ customers by a gang of cyber-robbers.

How they attacked

The cyber attack took place at the bank’s Swiss Cottage branch in April. A member of the gang posed as an IT engineer in order to gain access to the branch and attached a device known as a KVM (Keyboard, Video and Mouse) switch to one of the branch’s computers.

This device which also has a 3G router attached allows a user to control multiple computers. This device helped members of the gang transfer money from customers’ account to an account of their choice. The device can cost only 10 pound and is widely available in computer stores or online.

Following a lengthy surveillance operation led by Metropolitan Police’s Central e-Crime Unit (PeCU) and Barclays security team, eight men were taken into custody from a flat nearby Marylebone. Property including cash, jewellery, drugs, thousands of credit cards and personal data has been seized following searches of properties in Westminster, Newham, Camden, Brent and Essex.

The arrests come after four men appeared in court accused of a failed attempt to take control of computers at a Santander branch in southeast London, again using a KVM device. Although Barclays claims to have recovered a significant portion of the funds stolen, customers are raged for being kept in the dark regarding this security breach.

Last words

Given the imminent cyber threat currently hanging over UK banks, it is high time that these financial institutions make cyber security their top priority.