UAE's RAKBANK says no customers lost from cyber fraud

Reuters News
Posted: May 10, 2013 9:03 AM

DUBAI (Reuters) - National Bank of Ras Al Khaimah (RAKBANK) said on Friday that none of its customers had lost any money as a result of a cyber fraud which resulted in a loss at the Gulf bank in 2012.

The bank's chief executive, Graham Honeybill, said in a statement: "We are given to understand that the overall fraud encompassed a number of banks not only in the Middle East but in the USA and other countries".

A global cyber crime ring stole $45 million from two Middle Eastern banks by hacking into credit card processing firms and withdrawing money from ATMs in 27 countries, U.S. prosecutors said on Thursday.

Honeybill said the incident concerning RAKBANK related to events in December 2012 and involved the bank's service provider in India. The bank did not name the service provider or give any further detail.

The amount of the potential loss was 17.4 million UAE dirhams ($4.74 million) and this was fully provided for before RAKBANK closed its 2012 accounts, Honeybill said.

"The Bank can confirm that none of its customers suffered any financial loss as a result of this fraud," Honeybill added. ($1 = 3.6730 UAE dirhams)

(Reporting by Andrew Torchia; Writing by Alexander Smith; Editing by Matthew Tostevin)