International Finance
BankingFeatured

Postbank loses more than $3.2mn due to bank heist

Postbank
The bank is now forced to replace more than 12 mn cards for its customers

Postbank has lost more than $3.2 million on the back of fraudulent transactions and is now forced to replace more than 12 million cards for its customers, media reports said.

According to an internal report, the bank’s employees had used a master key to access customers’ accounts and make over 25,000 fraudulent transactions during the period between March and December 2019.

With that, Postcard is expected to replace all customer cards, media reports said. Former Chief Risk Officer Benjamin April, said in a January report, “It appears that the significance of magnitude of this card breach may not have been comprehended by Postbank operations and IT senior management. The Sassa master key compromise is a significant failure for the Postbank and also for the national payment system.”

The bank’s security audit reports that more than one employee stole the 36-digit code master or encryption key that will allow a user to decrypt the bank’s operations, media reports said.

Postbank is the subsidiary of the South African Post Office (SAPO). SAPO currently consists of a number of divisions and subsidiaries across financial services, logistics, property, electronic commerce, and retail services.

The Postbank itself was established in 1910 and is the largest savings bank in the country, with more than 6 million customers.

What's New

Business Leader of the Week: Amid concerns over GM’s Electric Future, CEO Mary Barra remains optimistic

IFM Correspondent

New Saudi insurance scheme to protect expat workers takes effect on October 2024

IFM Correspondent

IF Insights: Bitcoin sees flatlining performance, as new catalysts await

IFM Correspondent

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.