Payment systems of 300 small banks shut down due to ransomware attack | Payment systems of 300 small banks shut down due to ransomware attack: Customers are unable to withdraw cash from ATMs, UPI transactions are also not happening

Due to the ransomware attack, banking operations of about 300 small banks and financial institutions across the country have come to a halt. This cyber attack has happened on the technology service provider C-Edge Technologies. The company provides banking technology systems to small banks across the country.

This cyber attack has affected the customers of those cooperative banks and rural regional banks which are dependent on SBI and TCS’s joint venture C-Edge Technologies. Due to this, customers are not able to withdraw cash from ATMs. At the same time, problems are also being faced in transferring amount through UPI.

There has been no statement from the Reserve Bank of India (RBI) and the software company in this regard, nor has any financial loss been reported yet.

C-Edge Technologies hit by ransomware attack: NPCI
National Payment Corporation of India (NPCI), the organization that oversees the payment system, issued a notice on the social media platform X on Wednesday night, stating that ‘software company C-Edge Technologies has been attacked with ransomware, affecting some of its systems.’

According to NPCI, ‘Due to a cyber attack, C-Edge has been temporarily quarantined from the retail payment systems operated by NPCI. Restoration work is being done in collaboration with C-Edge Technologies.

NPCI said, ‘The security of the payment systems of these banks is being reviewed. Customers of banks taking services from C-Edge will not be able to access the payment systems during the quarantine.’

There is a problem in the payment system since last two days
According to the news agency report, National Cooperative Union of India chairman Dileep Sanghani said that around 300 banks across the country including 17 district cooperative banks of Gujarat are facing payment related problems since last two-three days.

He said, ‘Banks are facing problems since July 29 and software company officials are calling it a technical glitch. However, other banking services are working normally.

These banks were also separated from the country’s payment network
According to the report, these banks have also been isolated from the country’s payment network to prevent the cyber attack from spreading on a large scale. Most of these are small banks and only 0.5% of the country’s payment system has been affected by this.

An official said that ransomware has been found in C-Edge’s system and after removing it, a third party audit has been conducted. If everything goes according to plan, the system will be operational by Thursday morning or afternoon. There are about 1,500 cooperative and regional banks in India, which mostly operate outside big cities.

Ransomware means digital ransom
Ransomware is a type of malware that enters your computer and gains access. It encrypts all your files. It demands ransom in exchange for returning the data and access.

In simple terms, this can be understood as kidnapping. A robber takes control of your system and data and asks for ransom in return. After paying the ransom, he can either return your data or destroy it.

First case of ransomware
According to the Becker’s Hospital Review website, the world’s first ransomware attack happened in 1989. It was carried out by AIDS researcher Joseph Pope. Joseph distributed 20 thousand floppy disks in 90 countries of the world. He said that this disk contains an analysis of the dangers of AIDS. The disk also contained a malware program, which became active in all those computers. At that time, a ransom of $189 was demanded in exchange for the data. This ransomware attack is known as AIDS Trojan.