In a significant security incident impacting thousands of international travelers and digital payment users, Yes Bank has officially flagged unauthorised transactions totaling approximately $280,000 (roughly 2.55 crore INR). The breach specifically targeted the bank’s multi-currency prepaid forex cards, which are issued in strategic partnership with the fintech platform BookMyForex. This sophisticated fraud wave has prompted an immediate response from the lender and has drawn the scrutiny of the Reserve Bank of India (RBI).
Anatomy of the Fraud: The Latin American Connection
The fraudulent activity was detected in the early hours of February 24, 2026, occurring within a tight five-hour window between 3:30 AM and 8:30 AM IST. Internal forensic investigations by Yes Bank revealed that the attacks were highly localized, with the transactions being routed through 15 specific merchants located in a Latin American jurisdiction.
According to banking officials, the fraudsters exploited a critical geographic loophole: the identified country does not mandate Two-Factor Authentication (2FA) for e-commerce transactions. By targeting regions where One-Time Passwords (OTPs) or additional verification layers are not required, the perpetrators were able to bypass the standard security protocols that Indian customers typically rely on for domestic payments.
Scale of Impact and Rapid Containment
The breach affected approximately 5,000 customers who hold the co-branded multi-currency cards. While transactions worth $280,000 were successfully processed, Yes Bank’s automated fraud monitoring systems were able to trigger alerts as the volume of unusual overseas activity spiked.
Real-time surveillance allowed the bank to decline 688 subsequent unauthorised attempts, effectively safeguarding an additional $100,000 (91 lakh INR) from being siphoned off. As a primary risk containment measure, Yes Bank has suspended all e-commerce transaction capabilities originating from the specific Latin American nation involved in the incident.
RBI Scrutiny and Customer Protection
The scale of the incident has led the Reserve Bank of India to summon senior executives from Yes Bank. The central bank is seeking a comprehensive presentation on the root cause of the breach, the timeline of detection, and the current strength of the bank’s cybersecurity architecture. There are specific concerns regarding how sensitive card information, including CVV numbers, may have been compromised.
Yes Bank has reassured its customers that it is working closely with its card network partners to initiate the chargeback process. The goal is to ensure a zero-liability outcome for the 5,000 impacted users, meaning the bank intends to reverse the fraudulent charges so that customers do not suffer permanent financial loss.
The Growing Risk of Cross-Border Transactions
This incident underscores a growing vulnerability in the global banking ecosystem. While India has some of the world’s most stringent digital payment security laws, the lack of uniform international standards for 2FA makes cross-border prepaid cards a frequent target for organized cybercrime syndicates. Financial experts suggest that travelers using forex cards should keep their cards “locked” via mobile apps when not in use to provide an extra layer of personal security.
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