06-07-2010, 10:57 AM
DBS Bank suffered its largest ever systems-related failure yesterday, causing over 1,000 automated teller machines (ATMs) belonging to it and POSB, as well as its Internet and mobile banking services, to be crippled for at least seven hours.
Nets and credit card transactions using plastic issued by the bank were also rejected during that time.
From Bishan to Tampines and Jurong, queues formed early yesterday morning as frustrated cardholders tried without luck to withdraw cash from ATMs or pay for purchases.
Those who tried to make online transactions found that they could not even log on to their banking accounts.
Businesses were also left counting the cost, as customers who tried to pay for purchases via Nets or credit card beat a hasty retreat when they found they could not do so.
In a statement last night, DBS said the problem was detected at 3am.
However, several businesses said they began noticing the problem an hour earlier.
The bank did not say what caused the problem.
At an event last night, Mr Piyush Gupta, the bank's chief executive, said it was 'perplexing' that the safeguards had not kicked in.
He said: 'We are now doing thorough investigations with our vendor IBM... I don't think there is any sabotage. There has been no loss of customer data... no loss of records.'
He added that the bank regretted what happened.
Mr David Gledhill, DBS' head of technology and operations, said it was conducting a full-scale investigation.
Information security experts contacted did not want to speculate on the cause of the breakdown, saying it could have been caused by any number of things, from a virus to a software or hardware failure.
When contacted, the Monetary Authority of Singapore (MAS) said: 'As part of IT and operational risk management, banks are required to investigate promptly the causes of system breakdowns and take immediate measures to rectify system failures and restore customer services.
'Subsequent action is also required to strengthen the system and prevent future recurrence.'
It added that banks here have been issued technology risk management and computer security guidelines.
'As part of its supervision of banks, MAS assesses banks' compliance with these requirements, and will take appropriate supervisory action where necessary,' it said.
In its statement, DBS said it restored branch and ATM services by 10am. The other systems were up by lunchtime, it said.
This is the first time DBS has experienced a service break of this extent. In 2001, its ATMs and Internet banking system were hit by a technical fault, but were up within an hour.
Last year, branch computers were affected, preventing customers from withdrawing more than $2,000 or updating their passbooks for three hours.
Meanwhile, there was much frustration among DBS' consumers, many of whom were trying to withdraw cash while on their way to work.
Multimedia developer Kartini Ishak, 25, had to count her spare change to get breakfast - a $2 sandwich was all she could afford - after failing to draw money from three different ATMs between 7am and 9am.
'I was worried as I didn't have any cash on me, and even though I had a Citibank card, POSB and DBS ATMs are still the most convenient,' she said.
Saleswoman Michelle Yeo, 32, was 20 minutes late for a meeting as she had to take the bus instead of a taxi to her office in City Hall after failing to get cash from an ATM.
She said: 'I didn't have cash on me, and the last thing I expected was for all DBS' ATMs to be down.'
Shops suffered too.
A 7-Eleven convenience store at Braddell MRT station had to turn away customers who could only pay with Nets, and said it made $100 less than the $700 to $800 it usually takes in between 6am and 3pm on a Monday.
To help customers, DBS honoured all cash cheques of $500 and below on the spot, and customers also had immediate access to urgent over-the-counter withdrawals until ATM services were restored at 10am.
Additional manpower was also deployed to branches and the call centre to attend to customer queries and all branches stayed open for an extra two hours yesterday to assist customers with their banking needs.
mavistoh@sph.com.sg
hpeishan@sph.com.sg
Nets and credit card transactions using plastic issued by the bank were also rejected during that time.
From Bishan to Tampines and Jurong, queues formed early yesterday morning as frustrated cardholders tried without luck to withdraw cash from ATMs or pay for purchases.
Those who tried to make online transactions found that they could not even log on to their banking accounts.
Businesses were also left counting the cost, as customers who tried to pay for purchases via Nets or credit card beat a hasty retreat when they found they could not do so.
In a statement last night, DBS said the problem was detected at 3am.
However, several businesses said they began noticing the problem an hour earlier.
The bank did not say what caused the problem.
At an event last night, Mr Piyush Gupta, the bank's chief executive, said it was 'perplexing' that the safeguards had not kicked in.
He said: 'We are now doing thorough investigations with our vendor IBM... I don't think there is any sabotage. There has been no loss of customer data... no loss of records.'
He added that the bank regretted what happened.
Mr David Gledhill, DBS' head of technology and operations, said it was conducting a full-scale investigation.
Information security experts contacted did not want to speculate on the cause of the breakdown, saying it could have been caused by any number of things, from a virus to a software or hardware failure.
When contacted, the Monetary Authority of Singapore (MAS) said: 'As part of IT and operational risk management, banks are required to investigate promptly the causes of system breakdowns and take immediate measures to rectify system failures and restore customer services.
'Subsequent action is also required to strengthen the system and prevent future recurrence.'
It added that banks here have been issued technology risk management and computer security guidelines.
'As part of its supervision of banks, MAS assesses banks' compliance with these requirements, and will take appropriate supervisory action where necessary,' it said.
In its statement, DBS said it restored branch and ATM services by 10am. The other systems were up by lunchtime, it said.
This is the first time DBS has experienced a service break of this extent. In 2001, its ATMs and Internet banking system were hit by a technical fault, but were up within an hour.
Last year, branch computers were affected, preventing customers from withdrawing more than $2,000 or updating their passbooks for three hours.
Meanwhile, there was much frustration among DBS' consumers, many of whom were trying to withdraw cash while on their way to work.
Multimedia developer Kartini Ishak, 25, had to count her spare change to get breakfast - a $2 sandwich was all she could afford - after failing to draw money from three different ATMs between 7am and 9am.
'I was worried as I didn't have any cash on me, and even though I had a Citibank card, POSB and DBS ATMs are still the most convenient,' she said.
Saleswoman Michelle Yeo, 32, was 20 minutes late for a meeting as she had to take the bus instead of a taxi to her office in City Hall after failing to get cash from an ATM.
She said: 'I didn't have cash on me, and the last thing I expected was for all DBS' ATMs to be down.'
Shops suffered too.
A 7-Eleven convenience store at Braddell MRT station had to turn away customers who could only pay with Nets, and said it made $100 less than the $700 to $800 it usually takes in between 6am and 3pm on a Monday.
To help customers, DBS honoured all cash cheques of $500 and below on the spot, and customers also had immediate access to urgent over-the-counter withdrawals until ATM services were restored at 10am.
Additional manpower was also deployed to branches and the call centre to attend to customer queries and all branches stayed open for an extra two hours yesterday to assist customers with their banking needs.
mavistoh@sph.com.sg
hpeishan@sph.com.sg