India Outsourcing Under Scanner After $45-mn Global ATM Heist

Outsourcing by financial institutions is under new scrutiny in the wake of two massive bank heists spanning at least 24 countries. The thieves targeted two payment processing companies, one in India and the other in the United States, hacking computer systems that process MasterCard debit cards issued by two UAE banks, reports the PTI news agency in India. In two separate attacks, the organizers distributed account details to groups of people who then conducted thousands of ATM transactions and withdrew at least $45 million in hours. Financial regulators in Britain, Switzerland and the United States are reviewing four cases involving India over controversies connected to outsourcing by financial firms, reports PTI. “India does not have the electronic database infrastructure in place to allow fast, effective checking of the bona fides of individuals," reports the UK’s Financial Conduct Authority. The heists alert bank regulators and global consumers, too, about how many and which hands are sharing account data. – YaleGlobal