Union Bank of India reports cyber breach on offshore account

MUMBAI (Reuters) - Union Bank of India Ltd said on Friday one of the bank's offshore accounts was breached in a cyber attack but the money trail was traced and movement of funds was blocked.

"There is no loss caused to the bank," the bank said in a statement, adding it had informed authorities about the breach.

A source familiar with the matter said the breach of the "nostro" account, which a bank maintains with an overseas bank in foreign currency, took place in Hong Kong.

Union Bank executives in Hong Kong and India declined to comment. Other bank officials were not immediately reachable for comment.

"A cyber security forensic audit has commenced to identify, plug any gaps, and strengthen the system," Union Bank said.

Following a recent cyber attack on a Bangladesh central bank's account at the New York Federal Reserve, the Reserve Bank of India last month asked Indian banks to immediately put in place a cyber security policy.

Some $81 million was stolen from the Bangladesh central bank account with the New York Fed in one of the biggest-ever cyber heists.

(Reporting by Suvashree Dey Choudhury; Editing by Robert Birsel and David Holmes)