Fraudsters Steal ₹11.55 Crore from Himachal Pradesh Co-op Bank
In a shocking incident that has exposed serious vulnerabilities in mobile banking security, cybercriminals infiltrated the Himachal Pradesh State Cooperative Bank (HPSCB) and stole a staggering ₹11.55 crore. Notably, the attackers used a customer’s smartphone as the point of entry—raising urgent concerns about cybersecurity practices in India’s cooperative banking sector. Read More about Himachal Pradesh Co-op Bank Froud below.
How the ₹11.55 Crore Himachal Pradesh Co-op Bank Froud Happened
According to reports from The Indian Express, the fraud occurred between May 11 and 12, 2025. During this period, the criminals executed NEFT and RTGS transactions to transfer funds into 20 different bank accounts. However, since May 13 was a bank holiday, the suspicious activity went unnoticed until May 14, when the Reserve Bank of India (RBI) issued a routine transaction report.
Access Gained via HimPaisa Mobile App
Interestingly, the fraudsters didn’t breach the central server. Instead, they compromised a customer’s smartphone linked to the Hatli branch in Chamba district. Through this device, they exploited the HimPaisa mobile banking app to access the bank’s internet banking system.
Although the exact technical method is still under investigation, initial findings suggest that malware or remote access tools enabled the attackers to control the device—and consequently the banking interface.
Immediate Action by the Bank
Reacting quickly, the bank froze all 20 accounts that had received the funds. Additionally, it filed an FIR at the Sadar Police Station in Shimla, which later transferred the case to the Cyber Crime Unit for a deeper investigation.
In a statement, Sharwan Manta, Managing Director of HPSCB, clarified the nature of the breach:
“The hackers didn’t access our core server. They infiltrated our internet banking system using the mobile banking route.”
As a precaution, the bank involved the Indian Computer Emergency Response Team (CERT-In) to conduct a comprehensive forensic audit of its data center and transaction history. Furthermore, the RBI has been kept in the loop throughout the investigation.
Will Depositors Lose Their Money?
Fortunately, customers will not face financial losses. The bank has confirmed that it holds cybersecurity insurance, which covers such digital threats. Therefore, all impacted funds are expected to be recovered through insurance claims.
Moreover, the bank has assured that customers’ deposits remain safe and that normal banking operations will continue without disruption.
Broader Implications for Cooperative Banks
Clearly, this cyberattack has highlighted the growing threat faced by cooperative banks across India. These institutions often operate with limited digital infrastructure and weaker cybersecurity protocols compared to commercial banks. As a result, they become easy targets for organized cybercriminals.
To prevent such breaches in the future, cooperative banks must:
- Upgrade their cybersecurity architecture
- Regularly audit mobile banking apps
- Educate both staff and customers about cyber hygiene practices
What Customers Can Do to Stay Safe
While banks work to improve their systems, customers should also take preventive steps to secure their financial data. Here’s what you can do:
- Avoid sharing OTPs or passwords with anyone
- Never allow remote access to your smartphone
- Keep your banking apps updated from official app stores
- Immediately report suspicious activity to your bank
By staying alert, you can minimize the risk of falling victim to digital banking fraud.
Final Thoughts
This ₹11.55 crore fraud is more than just a financial scam—it’s a wake-up call. As banking becomes more digital, both institutions and individuals must prioritize cybersecurity. Cooperative banks, in particular, need to take immediate steps to enhance their defenses against evolving threats.
At the same time, regulators like RBI should enforce stricter guidelines on digital security, especially for regional and rural banks. After all, in a rapidly digitizing economy, the cost of complacency could be catastrophic.
Stay informed with Banking Insights for the latest updates on cybersecurity, financial scams, and digital banking developments.
