Bangladesh Bank Cyber Heist: A Case of Transnational Financial Crime

• In Event: Opportunity in a Changing World: Cybercrime, COVID-19, and the Gender Gap

Abstract

The 2016 Bangladesh Bank cyber heist was one of the most stirring transnational financial crimes in recent history. Hackers exploited vulnerabilities in the Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment system, illegally transferring $101 million from Bangladesh Bank’s account at the Federal Reserve Bank of New York. Of this amount, $81 million was laundered through fake accounts in the Rizal Bank in the Philippines. The theft exposed critical weaknesses in Bangladesh Bank’s cybersecurity infrastructure and highlighted systemic vulnerabilities in global financial institutions. This study employs qualitative research using secondary data sources to analyze how the heist occurred and the factors that facilitated it, drawing on Routine Activity Theory and other criminological frameworks. Findings indicate that weak cybersecurity measures, poor regulatory oversight, and the lack of real-time fraud detection mechanisms contributed to the success of the attack. Additionally, legal and jurisdictional challenges hindered efforts to recover the stolen funds and prosecute the offenders. The study emphasizes the urgent need for enhanced cybersecurity protocols, stricter financial regulations, and strengthened international cooperation to prevent similar transnational financial crimes. Strengthening institutional safeguards and fostering global collaboration are crucial to mitigating future risks.

Author

• Md Harun Or Rashid, Florida International University