Bhavnagar: The cooperative banking sector in Gujarat’s Bhavnagar district has been shaken after a major cyber fraud involving more than ₹7 crore was detected at the Bhavnagar District Cooperative Bank. Unknown hackers allegedly breached the bank’s software system and executed a large number of online transactions, transferring funds to multiple accounts. Following the discovery of the fraud, the bank management has temporarily suspended operations across all branches in the district as a precautionary measure.
According to bank officials, the fraudulent transactions were carried out through accounts linked to the Sidsar, Subhashnagar, Bharatnagar, and Talaja branches. Initial findings suggest that the bank’s data security system was compromised, allowing unauthorized transactions to be carried out and resulting in the transfer of several crores of rupees to different accounts.
Suspicious Transactions Trigger Alarm
The incident came to light on Monday morning during routine system checks conducted by bank staff. Normally, transactions worth around ₹70 to ₹80 lakh are recorded through mobile banking during holidays. However, when the system was reviewed at around 10:00 am on Monday, the total transaction amount displayed exceeded ₹7 crore.
The unusually high figure immediately raised suspicion among bank officials, prompting them to initiate a detailed internal investigation. Preliminary examination revealed that a large number of transactions had been executed within a very short span of time, clearly indicating that the bank’s digital infrastructure had been misused.
Given the seriousness of the situation, the bank management promptly informed the software service provider responsible for maintaining the system. As a preventive step, the bank’s entire software system was temporarily shut down to prevent any further suspicious activity. However, by the time the system was halted, a substantial amount had already been transferred to multiple bank accounts through the unauthorized transactions.
Over 1,170 NEFT Transfers Across Four Branches
Further investigation revealed that approximately 1,170 NEFT transactions were executed during the cyber breach through accounts associated with the four branches. The funds were transferred to several different bank accounts, making the investigation more complex and requiring extensive transaction tracing.
The bank management has also informed the local administration about the incident. To facilitate a more detailed technical investigation into the cyber attack, a team of bank officials along with technical experts has travelled to Gandhinagar to lodge a formal complaint and seek assistance from specialized cyber investigation authorities.
Security Vulnerability Under Investigation
Technical experts are now working to determine how the hackers managed to infiltrate the bank’s software system and bypass its security mechanisms. Preliminary indications suggest that the breach may have been linked to a technical vulnerability or security flaw within the software infrastructure used by the bank.
Bank officials stated that internal staff do not have access to the primary control keys of the core banking software system. These keys are typically managed by the external software provider, meaning that several critical aspects of system security depend on the vendor’s technological framework.
Meanwhile, the bank has alerted other financial institutions where the suspicious funds were transferred. Steps have been initiated to freeze the recipient accounts and trace the transactions in an effort to secure the transferred money before it can be withdrawn or further moved.
Cybercrime expert and former IPS officer Prof. Triveni Singh said that cyber attacks on banking systems often exploit software vulnerabilities, network security gaps, or social engineering tactics. According to him, rapid technical investigation and real-time transaction tracking are essential in such cases to prevent further financial losses and recover the stolen funds.
Banking Services Suspended Pending Security Audi
Following the incident, the bank has suspended operations across all its branches as a precaution until a comprehensive security audit and technical review of the system is completed.
The temporary shutdown of services may cause inconvenience to farmers and account holders, as cooperative banks play a crucial role in financial transactions in rural areas. However, bank authorities said the decision was necessary to protect customers’ interests and restore the integrity of the banking system.
Officials added that efforts are underway to strengthen security measures and complete the technical investigation so that banking services can be restored at the earliest without compromising system safety.
