A ransomware attack on C-Edge Technologies led to the disruption of digital payment services for 300 small and cooperative banks, impacting the Unified Payments Interface (UPI) and Immediate Payment Service (IMPS) on Wednesday. The National Payments Corporation of India (NPCI) isolated the affected banks from the broader payment network to prevent further issues.
C-Edge Technologies, a joint venture between Tata Consultancy Services (TCS) and State Bank of India (SBI), was the target of the ransomware attack. This type of cyberattack involves unauthorized system access where attackers encrypt data and demand a ransom for its decryption. NPCI’s decision to isolate C-Edge, which provides services to cooperative and regional rural banks, left customers of these banks unable to access payment services during the isolation period.
NPCI announced on X (formerly Twitter) that efforts to restore services were being conducted on a “war footing.” The organization is collaborating closely with C-Edge Technologies to expedite the restoration process. A comprehensive security review is underway to ensure system security before reconnecting to the payment network. Customers are advised to remain patient and stay informed through updates from their respective banks and NPCI as restoration efforts progress.
Ransomware attacks can be categorized into different types:
- Crypto ransomware: Encrypts files and demands payment for the decryption key.
- Locker ransomware: Locks the user’s screen, preventing access to the device without paying a ransom.
- Double extortion: Encrypts files and threatens to leak sensitive data if the ransom is not paid.
The cyberattack underscores the increasing threats faced by financial institutions and the critical need for robust cybersecurity measures to protect digital payment systems.
