The hacking of the official website of Office of the Principal Controller of Defence Accounts (Officers) was done through an IP address that has been traced to Germany, defence sources here said.
However, the officials believe that the hacking, which occurred on March 31, could have been a paid job.
"The hacking has been traced to Germany but we believe it could have been a paid job," the sources said.
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The website -- www.Pcdaopune.Gov.In -- had been down for several days and it was feared that personal details besides login names and passwords may have been compromised.
Arvind Kaushal, Controller of Defence Accounts, today said the the incident had "hit us hard".
Addressing a seminar here, Defence Minister Manohar Parrikar cautioned the Defence Accounts officials against any attack of hackers on their database.
Inaugurating a two-day Controllers' Conference of Defence Accounts Department, here Parrikar said his top priority is to enhance military capabilities of the country with due focus on modernisation of the armed forces.
He said, high serviceability levels of equipment and weapon systems and high morale of soldiers is also necessary which is possible with an effective and optimum resource utilisation.
He stressed on working as an integrated whole with shared resources of data and information, specifically in area of pension, payments, compilation and accounting preferably on real time basis.