As India supports digital payments future, how secure are banks from cyber attacks?
As the government continues to move ahead with cash to cashless economy, the success of this move will rely on how the battle between bankers and hackers plays out. Bankers must upgrade and reinforce their cyber defenses as hackers try to pinch funds from banks or steal debit or credit card details of customers daily. Today, when the easiest way to buy anything from drinks to cars is to use the mobile wallet, a few clicks of the mouse is what it takes to rob a bank.
In a country like ours where there is 98% cash circulating in market, cash payments replaced by electronic payments is not that easy and will take time. But due to demonetization Digital payment methods got boosted. The digital payment method has opened up more opportunities for cyber crime people to steal card details, mobile wallets and PINs. “India has been at the lower end of frauds as volumes were low. Now, I suspect that will change as digital payments volumes surge,” says R Venkatachalam, managing director, India & South Asia, FIS Global.
Akhilesh Tuteja partner and global leader of Cyber Security, KPMG said, “If the benefits of digital payments are exponential, so are the risks.” India’s central banker itself flagged off concerns in this regard.
RBI deputy governor SS Mundra said “Recent experience shows involvement of organized gangs and nation-state actors having huge financial backing. On the other hand, the cost of orchestrating such attacks is coming down. There are several reports indicating availability of credentials of customers for sale in dark web, which is really scary”