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₹2.34 crore stolen in cyber heist from Karnataka Cooperative Bank, Vijayanagara district

In a shocking cyber heist, ₹2.34 crore was stolen from the Ballari District Co-operative Central (BDCC) Bank in Karnataka’s Vijayanagara district. Hackers exploited the bank’s RTGS/NEFT system, diverting funds to 25 fraudulent accounts across northern India.

The breach was discovered on January 13, 2025, after multiple bank branches reported complaints from customers whose funds were not credited. Preliminary investigations revealed that hackers had manipulated XML files during the routine transfer of funds from BDCC Bank to IDBI Bank on January 10, altering account numbers and IFSC codes while leaving beneficiary names unchanged. This allowed the funds to be redirected to unauthorized accounts.

The transactions involved amounts exceeding ₹5 lakh, which were siphoned off to accounts in different states. Following the revelation, the bank suspended its RTGS/NEFT services and complained to the Hosapete Town Police Station. The case was later transferred to the Ballari CEN (Cyber Economic Narcotics) Police Station for further investigation.

BDCC Bank CEO B. Jayaprakash, who filed the complaint, emphasized that there was no evidence of internal staff involvement, as the XML file manipulation appeared to have occurred externally. “Only the account numbers and IFSC codes were altered, while the beneficiary names remained intact. This raises questions about how such discrepancies went unnoticed during the transfer process,” he stated.

District Superintendent of Police Sriharibabu B.L. confirmed that efforts are underway to freeze the fraudulent accounts and track the perpetrators. The police have registered an FIR under relevant sections of the Information Technology Act and Bharat Nyay Samhita, addressing cyber fraud and cheating.

This marks one of the first significant cyberattacks on a regional cooperative bank in the past decade, highlighting the growing vulnerabilities in digital banking systems.

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