Bangladesh Bank Heist

In March of 2016, $81 million was stolen from the Bangladesh central bank’s account at the Federal Reserve Bank of New York. Congresswoman Maloney, then Ranking Member of the House Financial Services Subcommittee on Capital Markets and GSEs, as well as a senior member of the House Oversight and Government Reform Committee, demanded answers from the New York Fed as the world tried to make sense of what happened and how.

 

The New York Fed responded to the Congresswoman’s inquiries and stated that it was reviewing its security protocols. Following this review, the New York Fed made a number of reforms to prevent similar cyber-heists from occurring in the future, such as the creation of a 24-hour hotline for foreign central banks.

 

In May of 2016, the Congresswoman kept up the pressure for reforms by requesting that the three U.S. bank regulators — the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) — review the Bangladesh Bank heist and take steps to ensure that both U.S. banks and SWIFT (the international money-transferring system) have cybersecurity controls in place to guard against similar cyber-attacks.

 

In response to the Congresswoman’s efforts, SWIFT made a series of sweeping reforms to the international money transferring system. SWIFT has completely overhauled their security system, and now requires its members to have a comprehensive, 16-point security system in place — and they inspect their members annually to ensure they’re complying with the new security program. SWIFT has also started using 2-factor authentication, which is the gold standard among security professionals.

 

For a deeper dive, see The New York Times’ The Billion-Dollar Bank Job.

More on Bangladesh Bank Heist

Oct 6, 2016 Press Release

NEW YORK – Congresswoman Carolyn B. Maloney (NY-12) outlined priorities for cybersecurity of the financial system today at Symphony’s “Innovate 2016” conference. During her remarks, the Congresswoman noted that the risks posed by cyberattacks “have grown significantly in the past few years” and that in order to address these new dangers, we, as a country, must recognize that they go beyond businesses issues, but must be addressed as a policy issue due to operational risk, disruption of financial activity and threats to customer privacy. Rep.

Aug 24, 2016 Press Release
Today Rep. Carolyn B Maloney (NY-12), Ranking Member of the House Financial Services Subcommittee on Capital Markets and GSEs, released a letter from the Board of Governors of the Federal Reserve System (Federal Reserve Board), the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) that outlines the agencies’ responses to recent cyber-attacks involving the SWIFT financial messaging network resulting in the theft of millions of dollars. The agencies’ letter was in response to a May 2016 letter from Rep. Maloney that she sent as part of an inquiry into a series of reported cyber attacks in which hackers stole banks’ SWIFT credentials and initiated fraudulent fund transfers, including the theft of $81 million from the Bangladesh central bank’s account at the New York Fed.
Aug 24, 2016 In The News

U.S. banking regulators are ramping up oversight around financial messaging system Swift, a key intermediary in global payments that faces greater scrutiny following a rash of cyberattacks on its users.

Jun 1, 2016 Newsletter

Dear Friend,

It has been a busy time in both Washington, D.C. and New York and I wanted to keep you updated on the work I’ve been doing and on issues that may concern you.

May 23, 2016 In The News

Recent hacks of international banks through the SWIFT messaging system raise serious questions about cyber-related risks to U.S. firms, Representative Carolyn Maloney wrote on Monday in a letter to the country's top banking regulators that asked about measures to strengthen systems' security.

May 13, 2016 In The News

The Federal Reserve Bank of New York defended fund-transfer procedures that have come under scrutiny after the theft of tens of millions of dollars from Bangladesh’s account at the New York Fed, in a letter released by a lawmaker Friday.

Thomas Baxter, the head lawyer and executive vice president at the New York Fed, was responding in an April 14 letter to enquiries from Rep. Carolyn B. Maloney (D., N.Y.), who asked the Fed for information about its procedures for recalling transfers that turn out to be fraudulent.

May 13, 2016 Press Release
The Federal Reserve Bank of New York has responded to Congresswoman Carolyn B. Maloney’s letter, found here, asking for answers on the bank’s actions in the heist of $81 million from the Bangladesh central bank’s account at the New York Fed. Rep. Maloney is the Ranking Member of the House Financial Services Subcommittee on Capital Markets and GSEs, as well as a senior member of the House Oversight and Government Reform Committee. A copy of the letter sent to Rep. Maloney by the New York Fed can be found here.
Mar 23, 2016 In The News

A U.S. lawmaker is seeking answers from the Federal Reserve Bank of New York over the theft by cyber criminals of $81 million from the Bangladesh central bank's account at the New York Fed.

Rep. Carolyn Maloney of New York, the senior Democrat on a key subcommittee of the House Financial Services panel, asked the New York Fed in a letter why it blocked 30 of the 35 fraudulent orders to transfer funds out of the account but failed to block the first five orders.

Mar 22, 2016 In The News

U.S. Congresswoman Carolyn Maloney, a New York Democrat, said on Tuesday that she wants a probe of last month's cyber heist from a Bangladesh Central Bank account at the New York Fed.

"We need a thorough investigation to determine how these criminals were able to manipulate the system so that banks and financial institutions can institute standards that will prevent hackers and cyber criminals from siphoning money out of accounts like those held at the New York Fed again," she said in a press statement.

Mar 22, 2016 Press Release

WASHINGTON, DC. – Today, Congresswoman Carolyn B. Maloney (NY-12) sent a letter to Federal Reserve Bank of New York President William Dudley pressing him for answers on the New York Fed’s actions in the recent heist of $81 million from the Bangladesh central bank’s account at the New York Fed. Rep. Maloney is the Ranking Member of the House Financial Services Subcommittee on Capital Markets and GSEs, as well as a senior member of the House Oversight and Government Reform Committee. A copy Rep.