Hitachi Payment Services says its system not compromised after reports of security breach

Amid reports of its system being hacked leading to huge data theft of bank customers, Hitachi Payment Services today said its system was not compromised, quoting an interim report by an external audit agency appointed by it.

A major security breach at the Hitachi Payment Services, that manages ATM networks of private sector banks, forced other lenders to block or recall debit cards of their customers to prevent them from falling prey to financial fraud. In all, 32 lakh debit cards were recalled by banks.

Hitachi Payment Services managing director Loney Antony said some of the banks to whom the company provides payment services, had reported such unauthorised transaction towards the end of July. It had then conducted an internal enquiry which did not reveal any security breach.

In September, the banks again reported suspicious transactions to the company after which an external audit agency was appointed.

“We had appointed an external audit agency in the first week of September to check the security of our systems for any breach or compromise based on a few suspected transactions that were highlighted by banks for whom we manage their ATM networks. The interim report published by the audit agency in September, does not suggest any breach or compromise in our systems,” Antony said.

He said that the final report is expected by mid-November. Following the incident, some banks like SBI have recalled around six lakh cards, while others like Bank of Baroda, IDBI Bank, Central Bank of India and Andhra Bank have already replaced their debit cards as a pre-emptive measure.

Some lenders like ICICI Bank, HDFC Bank and Yes Bank have asked customers to change their ATM pin numbers. HDFC Bank also advised its customers to use its own ATMs for carrying out transactions.