The Bangladesh Bank Heist of $81Million.

This paper focuses on the financial scams within the Bangladesh Bank. It outlines the methodology
used to collect data, presents the findings and Analysis, and provides recommendations to prevent
future financial scams. The paper's objectives are to identify financial fraud, its magnitude, the
methods used in its perpetration, and the possible solutions that can be implemented to prevent similar
scams from occurring. Methodology Data was collected from the Bangladesh Bank, newspapers, and
online sources of information. The data was then analyzed to identify the financial scam, its
magnitude, and the methods employed. The data was also used to develop recommendations to
prevent similar scams in the future.
Findings and Analysis In 2016, the Bangladesh Bank was the victim of a massive financial scam
involving the theft of $81 million from the central bank's account with the Federal Reserve Bank of
New York. The fraud was perpetrated by malicious actors who used false documents and fraudulent
activities to transfer the funds from the Bangladesh Bank's account to accounts in the Philippines and
Sri Lanka. The perpetrators used a " spear-phishing " technique to access the Bangladesh Bank's
internal systems. The funds were transferred to a network of accounts in the Philippines and Sri Lanka
and were subsequently laundered through the international banking system. The Bangladesh Bank's
investigation revealed that the funds were transferred to accounts belonging to individuals and
companies with close ties to the North Korean government. It is believed that the North Korean
government was involved in the scam, either directly or indirectly. The Bangladesh Bank also
discovered that the funds were transferred using the SWIFT messaging system. This system transfers
funds between banks and is considered highly secure. However, the Bangladesh Bank's internal
security systems were inadequate to prevent malicious actors from gaining access to the design and
transferring the funds.
The magnitude of the scam was significant, and the Bangladesh Bank suffered substantial financial
losses. The repercussions of the fraud were far-reaching and affected not only the Bangladesh Bank
but also the banking systems of the countries involved in the scam.
Recommendations To prevent similar scams from occurring in the future, the Bangladesh Bank
should implement the following suggestions:
1. Strengthen the internal security systems of the Bangladesh Bank and regularly update them to keep
up with the latest threats.
2. Implement an effective monitoring system to detect suspicious activities and prevent them from
occurring.
3. Implement procedures and protocols to ensure all funds transfers are appropriately authorized and
monitored.
4. Educate employees on the latest cyber security threats, and ensure they know the risks associated
with online banking.
5. Establish a task force to investigate financial scams and ensure that perpetrators are held
accountable.
In conclusion, The Bangladesh Bank was the victim of a massive financial scam in 2016. The fraud
was perpetrated by malicious actors who used false documents and fraudulent activities to transfer the
funds from the Bangladesh Bank's account to accounts in the Philippines and Sri Lanka. The
magnitude of the scam was significant, and the Bangladesh Bank suffered substantial financial losses.
To prevent similar scams from occurring in the future, the Bangladesh Bank should implement the
recommendations outlined in this paper.