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Bangladeshi Government Thinks The NY Fed's Tech Infrastructure Is A Little Third-World

All that American high-tech banking seems to have cost the Bangladeshis about $100 million.

The Bangladesh Central Bank is understandably a little pissed that $100 million went suddenly missing from an account at the Federal Reserve Bank of New York.

The Bangladesh Central Bank again blamed the Federal Reserve Bank of New York for a lack of security that made it easy for the unidentified hackers to make off with the loot — which it traced as far as a casino in the Philippines, before most of it disappeared.
Some of the cash has been recovered, although the South Asian central bank refused to say how much. Meanwhile, an international manhunt for the cyber thieves continued.

And when 26% of your population lives in abject poverty, you can be forgiven for pointing fingers at an economic super-power when your money ends up at a Filipino casino.

“We kept money with the Federal Reserve Bank and irregularities must be with the people who handle the funds there,” Bangladesh Finance Minister Abul Maal Abdul Muhith told reporters Tuesday, according to Bloomberg. “It can’t be that they don’t have any responsibility.”

The NY Fed responded to the accusations by saying that there must have been a hiccup with its high tech money-transfer system called SWIFT, but now officials over at the back seem to walking that back.

“The payment instructions in question were fully authenticated by the SWIFT messaging system in accordance with standard authentication protocols,” Andrea Priest, a New York Fed spokeswoman, said in a statement.

And the bank says that there are other protocols to ensure that stuff like this never goes down. But that's all well and good unless you're a Bangladeshi central banker staring into the abyss of $100 million hitting the craps table without your consent.

But at least the NY Fed is pretty confident that this won't happen again...

When asked if the New York Fed has an additional layer of cybersecurity to protect against potentially fraudulent SWIFT messages, Priest said, “I don’t know.”


Bangladesh bank blames NY Federal Reserve for $100M heist [NY Post]



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