Cyber Fraud of ₹11.55 Cr Exposes Lax Security in HP State Cooperative Bank, Customers Fume
Cyber Police Station Shimla probing the breach; RBI halts transfer, bank under fire for delayed response and weak safeguards
Shimla, May 17: A massive cyber fraud of ₹11.55 crore has exposed serious flaws in the cyber security system of the Himachal Pradesh State Cooperative Bank, sending shockwaves among account holders and triggering a full-fledged investigation by the Cyber Police Station in Shimla.
The fraud, which occurred on May 12, involved the hacking of over 20 bank accounts in a Chamba branch. But what’s more alarming is that the bank came to know about the breach only two days later, on May 14.
By then, the hackers had already attempted to siphon off the funds through multiple transactions.
Following the alert, the bank informed the Reserve Bank of India (RBI), which swiftly acted to halt the transfer of the stolen amount.
But the damage had been done — the breach has laid bare the weak digital armor of one of the state’s most trusted cooperative institutions.
As the probe deepens, sources say the bank is currently clueless about who the hackers are, how they managed to breach the system, and whether an insider may have been involved.
These unanswered questions have only added to the anxiety of customers and the credibility crisis facing the bank. Social media is ablaze with anger.
“How can such a vast sum be transferred without anyone noticing?
Was there no alert system in place? Or worse, was someone from inside helping the hackers?” asked a furious depositor from Chamba.
What the Chairperson and MD and so-called board of directors are doing ?
The management has stated that they are cooperating with investigators and that customer deposits are safe.
They also claim to be transitioning to a new, AI-enabled banking software system with enhanced security features.
But many argue that these measures should have been in place already, not introduced in damage control mode.
The bank now finds itself cornered with multiple questions demanding answers — who are the hackers? How did the breach go undetected for two days? Was any staff member involved? And most importantly, how secure are the other accounts?
For now, trust is the biggest casualty. The bank’s slow response, outdated cyber systems, and lack of clarity on the nature of the attack have left thousands of customers in a state of unease.
Until clear answers and solid reforms emerge, the shadow of this ₹11.55 crore fraud will continue to loom large.
