Financial Crime World

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Cyber Attacks on Banks and Financial Institutions Haunt Indonesia

A latest alleged breach has caused disruption to services provided by the country’s largest sharia bank, with a hacker group claiming to have stolen 1.5 terabytes of data managed by state-owned Bank Syariah Indonesia (BSI).

The Hack

The hacker group, known as LockBit ransomware, used malicious software LockBit 3.0 that blocks user access to computer systems and claimed to hold BSI’s customers’ and employees’ contact details, financial documents, card details and passwords.

Statement from Dark Tracer

In a statement on Twitter, Dark Tracer, an intelligence platform monitoring malicious activities in cyberspace, revealed the alleged breach. The hacker group demanded bank management contact them to negotiate before Tuesday 4:09 am or else they would release all the data on the dark web.

Response from BSI and Authorities

BSI’s chief executive, Hery Gunardi, apologized for service disruption and assured customers that “customer funds and data are safe.” However, BSI did not respond to The Jakarta Post’s question about the demands by the hacker group.

The Cyber and Crypto Agency (BSSN) spokesperson Ariandi Putra said the agency had communicated with BSI’s information technology team, which had independently investigated the alleged cyberattack and recovered its electronic system. “The results of the coordination concluded that the BSI cyber team would [continue to] handle and repair the system independently,” he added.

Call for Stronger Cybersecurity Measures

Cybersecurity Experts Sound Warning

Cybersecurity expert Pratama Persadha from the Communications and Information System Security Research Center (CISSReC) warned that electronic service providers must regularly assess their cybersecurity systems to prevent potential cyberattacks or data breaches. He suggested that BSI work with the BSSN to handle the incident.

Indonesia’s Vulnerability to Cyber Attacks

The alleged breach is a fresh reminder of Indonesia’s vulnerability to cyber attacks, despite enacting the long-awaited Personal Data Protection Law in October last year. The government was back in the spotlight for failing to protect citizens’ data following an alleged breach of COVID-19 tracking app PeduliLindungi in November – the second apparent hack of a state database since the privacy law was enacted.

Experts Call for Stronger Cybersecurity Measures

Institute for Policy Research and Advocacy (Elsam) executive director Wahyudi Djafar said that while the Communications and Information Ministry has no choice but to continue the oversight role, as mandated by the 2019 government regulation on electronic systems and transactions until the prescribed oversight agency is formed.

Experts call for stronger cybersecurity measures to protect Indonesia’s financial institutions from further cyber attacks. The government needs to prioritize the establishment of a robust data protection agency and strengthen its regulations to prevent similar breaches in the future.