Central Bank Heist : Internal Control Weaknesses And Techniques

2113 Words Apr 20th, 2016 9 Pages
Central Bank Heist: internal control weaknesses and techniques used to commit the fraud

As part of the scandal considered being one of the largest bank heists in modern history, several internal control weaknesses were discovered, which left a country exposed to future potential threats and an increased need for awareness and information system upgrades. Such a devastating case prompted other Central Banks around the world to examine and upgrade their cyber security measures. In this heist of a million dollars, there were a total of 35 transfer requests made to the New York Federal Reserve Bank by hackers on behalf of the unbeknownst Central Bank of Bangladesh. Of these 35 requests, 4 were successful and were transferred to the Rizal Bank in the Philippines in the amount of $81 Million. An additional transfer request intended for a non-governmental organization in Sri Lanka in the amount of $20 Million was stopped due to a spelling mistake and the money was returned to the Central Bank of Bangladesh. The last 30 transfer requests in the amount of $850 Million were brought to a halt by the New York Federal Reserve Bank based on instructions from the Central Bank of Bangladesh.

The $81 Million were transferred to accounts opened under fake names in Philippines which converted the money to the local currency of pesos and delivered $29 Million to Bloomberry Resorts Corp.’s Solaire Resort and Casino, $21.2 Million to the junket operator Kim Wong of Eastern Hawaii Leisure Co.…
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