Indian Banks suffer biggest ever breaches of financial data; Axis bank and SBI confirmed security breach

security breach
security breach


The festive season is not going to be good for all Indian people. Few of India’s biggest banks have started investigating the security breaches. SBI and Axis bank have confirmed this but we expect more banks to come with similar kind of news in coming days.

As per the initial reports, 3.2 million debit cards are affected by a malware-related security breach. Several victims have reported unauthorized usage from locations in China.

Axis bank, the third largest private sector bank, is working closely with Ernst and Young to investigate a security breach in its servers. it all started when Kaspersky reported something wrong on the servers of Axis bank.

“Our internal monitoring mechanism identified such a threat recently and all steps have been undertaken to neutralize the same,” the bank said in a statement to Reuters.

Axis bank confirms that there is no sign of money transfer but data could be affected. Nothing has been confirmed yet. The bank has also informed RBI for the same.

In a similar news, SBI also reissued more than 6 lakhs debit cards who were blocked after it suspected malware-related security breach. The Bank confirmed that customers who used SBI ATMs are safe but other Bank’s ATM machines were infected and there is a possibility of the data breach.

For being in safer side, SBI has blocked affected cards and reissued to customers who reapplied.

SBI also said that it is not the only bank affected by this ATM related malware. Card network companies have informed various banks in India about the potential risk to some cards.

“Card network companies (including) the National Payments Corporation of India, MasterCard, and Visa had informed various banks in India about a potential risk to some cards, owing to a data breach,” said SBI, adding that its own systems had not been compromised.

As per reports by Economics Times, around 3.2 million debit cards are affected which becomes the biggest ever breaches of financial data in India. Over 600,000 Rupay cards and 2.6 million Visa and MasterCard are affected. The Card issuing banks are SBI, HDFC, ICICI, Yes Bank and Axis Bank.

SBI has already confirmed the same, but other banks are yet to confirm this and block the affected cards.

Payments Council of India has ordered forensic audit on Indian bank servers and systems to detect the origin of the frauds.

NPCI Managing Director AP Hota said: “We have received complaints from banks about debit cards being used in China which aroused suspicion.”

Sources: 1, 2, 3