New York Fed questioned after hack on Bangladesh account

Staff Writer
Columbus CEO

WASHINGTON (AP) — A U.S. lawmaker is seeking answers from the Federal Reserve Bank of New York over the theft by cyber criminals of $81 million from an account belonging to the Bangladesh central bank.

Rep. Carolyn Maloney of New York, the senior Democrat on a key subcommittee of the House Financial Services panel, asked the New York Fed in a letter why it blocked 30 of the 35 fraudulent orders to transfer funds out of the account but failed to block the first five orders.

Bangladesh Central Bank Gov. Atiur Rahman resigned last week over the scandal. Attention increasingly has focused on suspected weaknesses in the Bangladesh central bank's cybersecurity.

Maloney is asking for a confidential briefing by the New York Fed's staff on the Feb. 4 cyber theft.