YES Bank Data Breach: ₹7.63 Crore Lost in Forex Card Fraud
In a significant financial security event, YES Bank has disclosed fraudulent transactions totaling nearly $840,000 (₹7.63 crore) on forex cards issued alongside BookMyForex. The incident has raised significant alarm among customers. Particularly after several users reported unauthorized withdrawals from their multi-currency prepaid cards.
What occurred?
YES Bank reported that unauthorized transactions were sanctioned for almost 5,000 customers between 03:30 IST and 08:30 IST on Tuesday. In this period, 688 unauthorized transaction attempts were successfully rejected. This protected almost $100,000 (approximately ₹9 crore) of customer assets.
Also, the bank explained that these questionable transactions were made using certain Bank Identification Numbers (BINs). They came from a Latin American nation that does not require two-factor authentication for online transactions, allegedly Brazil.
To prevent potential issues, YES Bank has limited e-commerce transactions from the specified country. It is collaborating with the card network to start chargebacks. This will ensure that impacted customers do not suffer financial losses.
A user reported that several transactions totaling approximately $350 were attempted. So, this was with some failing because of low balance and others completing, leading to a loss of money. Some individuals mentioned that their cards had remained inactive for years. It triggered significant worries about a potential data breach.
To make matters worse, several customers claimed that the BookMyForex app was malfunctioning and unreachable during the incident. So it hindered their ability to block their cards promptly.
Bank’s Reaction and Safety Protocols
Moreover, worried about a possible data breach, YES Bank has taken the initiative to block cards in certain groups that could have been impacted. Reports suggest that the bank swiftly began rejecting questionable transaction requests to mitigate the financial repercussions.
Also, in its formal announcement, BookMyForex refuted any violation on its part. The company highlighted that no customer information was jeopardized in its systems and that the unusual increase in fraudulent transaction attempts was detected and controlled. So, to enhance security, the impacted cards have been deactivated, and free replacement cards are being provided.
YES Bank has confirmed that it is working with the card network to initiate chargeback requests to recoup lost funds and guarantee that affected customers receive reimbursement.
Regarding BookMyForex and Its Collaboration
Established in 2012, BookMyForex functions as a currency exchange service provider, allowing customers to purchase or make payments from India. In 2022, “MakeMyTrip,” the Indian online travel firm, fintech division Trip Money purchased a controlling interest in the startup to enhance its financial product range.
Rising Alarm About Forex Card Safety
Forex cards are commonly utilized by global travelers for smooth multi-currency transactions without extra conversion charges. Nonetheless, this event has stirred up new worries regarding global transaction security, particularly in nations where two-factor authentication is not required.
Although YES Bank and BookMyForex have guaranteed customers that their funds remain secure and that corrective actions are in progress, the recent news updates highlight the significant weaknesses in cross-border digital payment systems
