Bank Muscat to recover $39m card fraud losses

Bank Muscat to recover $39m card fraud losses

Oman's Bank Muscat says its insurers have agreed to indemnify the $38.8 million loss it suffered in a pre-paid card fraud scam earlier this year.

Last December a gang hacked into the systems of two Indian payment processing firms, stole card data and used it to withdraw $45 million from ATMs around the world - around $39 million from Bank Muscat and the rest from National Bank of Ras Al-Khaimah PSC in the UAE.

In a statement, Bank Muscat now says that its insurers have agreed to indemnify its loss to the tune of $38.8 million and it "will reverse the loss provision created in Q1 2013 towards this specific loss through its Q4 2013 results".

Last month US authorities arrested five men in connection with the cyber-heist. The defendants are accused of operating a cell of 'cashers', who fanned out across the New York area to withdraw approximately $2.8 million at over 140 different ATM locations in a matter of hours.

The latest arrests are in addition to an earlier indictment of eight men in May, four of whom have already pleaded guilty to charges resulting from the crime.

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