The Hindu : New Delhi News : Concern over software used by banks

Online edition of India's National Newspaper
Tuesday, Apr 05, 2005

New Delhi

New Delhi

Concern over software used by banks

By Devesh K. Pandey

NEW DELHI, APRIL 4. The case in which the former electronic data processor manager of Janata Cooperative Bank Limited and three of his accomplices have been arrested by the Economic Offences Wing (EOW) of the Crime Branch has raised serious concerns over the efficacy of the software packages being used by banks for account-keeping and money transfers.

In the Janata Cooperative Bank case, the EOW found that the former data processor manager, Karam Singh, allegedly tampered with the software by introducing a bug thereby corrupting the entire system to facilitate money diversion from one account to the other without detection. Karam had complete knowledge about the software being used by the bank as he had received training in this regard by the company which had supplied the package. It effect, Karam also had a key to "back-door" access to the core programme of the software.

It is learnt that apart from this case, two similar cases of computer data manipulation were recently reported from Bank of India and the Allahabad Bank. In those cases too, the data processor officials were found involved in the fraud. While in the latest case, the amount allegedly embezzled is to the tune of over Rs. 1 crores, the money involved in the earlier cases were comparatively less.

Incidentally, in all these cases, the police noticed that the banks were using Veermati Communications bank-data software package. And the fraud was detected only after the banks got new software packages installed.

Stating that there was a need for more security features in the software being used by banks to prevent such frauds, a senior police officer said the data processor managers employed for system-maintenance should have restricted access to the software programme. "There can be arrangements restricting access to the vulnerable portions of the programme to prevent people from subverting the software and indulging in such financial frauds," said the police officer.

While the EOW officials are investigating the Janata Cooperative Bank case suspecting the involvement of some more people, they fear that such frauds are being committed in other banks as well.

Printer friendly page
Send this article to Friends by E-Mail

New Delhi

News Update

Stories in this Section