SWIFT Bank Hack

Target Audience

Undergraduate
Graduate

Keywords

SWIFT Bank
Data security
Data privacy

Introduction

Overview

In 2015 and 2016, a series of cyberattacks were carried out against various banks, and the attackers targeted the SWIFT network to steal funds. The attackers exploited vulnerabilities in SWIFT's Alliance Access software in order to initiate fraudulent transfer requests to accounts they control. Biggest attack was the Bangladesh bank heist, in which the attackers attempted to transfer close to $1B to fraudulent accounts, but were blocked by the New York Federal Reserve due to suspicions raised from a typo in the instructions.

Vulnerability Details

Initial compromise of Bangladesh Bank likely occurred through a combination of phishing emails or other social engineering methods. Sophisticated malware developed and used against SWIFT's Alliance Access software, tailored to manipulate SWIFT messages. With access to Bangladesh Banking systems and knowledge of their transactions, the attackers initiated the fraudulent transfer requests using their compromised SWIFT transfer messages. The attacks were consistent with tactics and methods used by the Lazarus Group, also known as APT 38, which is widely connected to the North Korean government. If APT 38 is backed by the North Koreans, this would be the first instance of a state actor conducting cyber attacks to steal funds, which could have profound implications for international relations. SWIFT announced new mandatory controls that all member banks must follow, and they will inspect member banks for compliance and inform appropriate regulators of noncompliant banks. SWIFT understands that they will continue to be the target of attacks and urge banks to remain vigilant.

Learning Objectives

Explain data security and privacy
Describe security and privacy violations in the SWIFT banking hack
List common protection mechanisms for data security and privacy

Download

Includes a PDF case study adapted from a real-world cyber breach
Guided questions for student engagement
Instructor materials including context and background
All content packaged in a downloadable ZIP file

Remote Terminal

Terminal Description

Module Questions

What happened in the SWIFT Banking Hack of 2015?Hackers infiltrated customer accounts through online banking portals.Attackers used stolen credentials and malware to exploit vulnerabilities in SWIFT's Alliance Access software, allowing fraudulent transfers of millions of dollars.Hackers exploited vulnerabilities in ATM machines to withdraw cash.The SWIFT network was directly attacked through a zero-day vulnerability.

What are two effective security mechanisms to guard against vulnerabilities like those exploited in the SWIFT hack?Using only encrypted email services for financial communications.Implementing multi-factor authentication (MFA) and network segmentation.Disabling SWIFT access for all external banks.Employing firewalls on all communication channels.

If you were a hacker, how would you launch a similar attack on a financial institution using the SWIFT network?Hack into the SWIFT mobile app and steal user credentials.Use phishing emails to gain credentials, install malware on critical systems, and escalate privileges to access SWIFT's systems, then use fraudulent messages to transfer large sums of money.Use brute force to guess SWIFT credentials.Overload the SWIFT network with spam requests until the system crashes.

What are some ways to perform privilege escalation in financial networks?Guessing passwords and bypassing firewall rules.Exploiting unpatched vulnerabilities, abusing weak access controls, using malware to steal administrator credentials, or leveraging misconfigured systems.Using Wi-Fi networks to bypass security.Sending large amounts of spam to crash the server.

How can vulnerability scanning be performed in a financial institution's network?Using tools like Nessus, Qualys, and OpenVAS to detect unpatched systems, misconfigurations, or open ports that could be exploited.Sending phishing emails to gather employee credentials.Manually checking every server for weaknesses.Using antivirus software to scan for vulnerabilities.

As the CTO of a financial institution, what measures would you implement to enhance the security of financial transaction systems?Use end-to-end encryption for all SWIFT messages and implement regular security audits of transaction systems.Disable SWIFT services for all foreign transactions.Only allow transactions during business hours.Increase the number of daily transaction limits.

SWIFT introduced new mandatory controls after the hack. How would you ensure compliance while minimizing alert overload?Disable low-priority alerts to avoid distractions.Implement a centralized SIEM system to manage alerts, prioritize critical alerts, and fine-tune alert thresholds to reduce false positives.Hire more staff to manually review every alert.Only monitor alerts for fraudulent transactions.

What solution would you propose to segment and categorize SWIFT's networks and resources?Use network segmentation to separate SWIFT operations from other corporate systems and implement access controls to limit who can access sensitive systems.Only allow SWIFT services to operate on weekends.Create a single network for all operations to simplify monitoring.Disable internet access for employees who handle SWIFT transactions.

What IT weaknesses were present in SWIFT's systems that enabled the hack?Lack of multi-factor authentication, poor network segmentation, and insufficient monitoring of third-party access to SWIFT.Weak encryption of all financial transactions.Inability to detect malware within emails.Use of outdated SWIFT versions by every bank.

As the CIO of SWIFT, how would you improve IT security?Disable SWIFT services for small banks.Implement a multi-layered security strategy with continuous monitoring, network segmentation, regular security audits, and the use of encryption for all communication.Prevent employees from accessing the SWIFT system from home.Hire third-party consultants to handle all security matters.