Bangladesh sues Philippine bank over cyber heist at New York Fed

Tuesday, 5 February 2019 00:58 - - {{hitsCtrl.values.hits}}

NEW YORK (Reuters): Bangladesh’s Central Bank last week sued a Philippine bank to recoup losses it suffered when unidentified hackers stole $ 81 million from its account at the Federal Reserve Bank of New York nearly three years ago.

In a complaint filed with the US District Court in Manhattan, Bangladesh Bank accused Rizal Commercial Banking Corp (RCBC) and dozens of other defendants of involvement in a massive multi-year conspiracy to steal its money.

Bangladesh Bank said funds stolen with the help of unnamed North Korean hackers were funnelled through RCBC accounts in New York City and eventually to the Philippines, where much of it disappeared in that country’s casino industry. RCBC did not immediately respond to a request for comment after market hours.It had been said on Wednesday, after learning the lawsuit would be filed: “We welcome this complaint, as it is an opportunity for RCBC to put on record again that it was a victim of what was started in Bangladesh by still unnamed persons.” The case arose from a February 2016 incident in which hackers tricked the New York Fed into sending $ 81 million belonging to Bangladesh Bank to four accounts held in fake names at an RCBC branch in Makati City.Most of the money was quickly withdrawn, and only about $ 15 million has been recovered. RCBC, based in Manila, has contended that the theft was an inside job and has accused Bangladesh Bank of a cover-up.

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