PNB (Punjab National Bank) FRAUD OF 11,400 CRORE
IMPORTANT FOR PRELIMS:
SWIFT (Society for Worldwide Inter-bank Financial Telecommunication)
- The SWIFT is a secure financial message carrier — in other words, it transports messages from one bank to its intended bank recipient.
- Its core role is to provide a secure transmission channel so that Bank 1 knows that its message to Bank 2 goes to Bank 2 and no one else.
- Bank 2, in turn, knows that Bank 1, and no one other than Bank 1, sent, read or altered the message en route.
- Banks, of course, need to have checks in place before actually sending messages.
- Messages sent by SWIFT’s customers are authenticated using its specialized security and identification technology.
- Encryption is added as the messages leave the customer environment and enter the SWIFT Environment.
- Messages remain in the protected SWIFT environment, subject to all its confidentiality and integrity commitments, throughout the transmission process while they are transmitted to the operating centres (OPCs) where they are processed — until they are safely delivered to the receiver.
- The SWIFT is a global member-owned cooperative that is headquartered in Brussels, Belgium.
- It was founded in 1973 by a group of 239 banks from 15 countries which formed a co-operative utility to develop a secure electronic messaging service and common standards to facilitate cross-border payments.
- Punjab National Bank where fund transfer through an inter-bank messaging system was not reported to the core banking solution, followed by the cyber attack on the City Union Bank, has put the spotlight once again on SWIFT or the Society for Worldwide Inter-bank Financial Telecommunication.