Banks across India are on high alert with the Reserve Bank of India (RBI) announcing possible cyber attacks, the Economic Times reported, adding that the banks have been told to constantly monitor their systems like SWIFT, the card network, RTGS, NEFT and UPI.
Also Read: Indian banks’ bad loan ratio at a 12 year low: RBI report
“In the light of credible threat intelligence received regarding potential cyberattacks, regulated entities are advised to put in place enhanced state of surveillance and resilience capabilities to guard against these threats,” an advisory issued by the Reserve Bank of India to financial institutions read.
Why is the RBI concerned about cyberattacks?
This came a few days before LulzSec, a group linked to several high-profile attacks reportedly targeted Indian banks, becoming active again after remaining dormant for a while, the Economic Times wrote.
Also Read: Bank unions ask finance minister to merge regional rural banks with sponsor banks
The financial sector reported more than 20,000 cyber attacks in the last 20 years, resulting in losses of $20 billion, according to the RBI’s Financial Stability Report.
How do the cyberattacks happen and where are they most prevalent?
25% of such attacks in India come from clicking on malicious links in emails and websites, according to a December 2023 report by the Data Security Council of India.
Also Read: RBI imposes ₹29.60 lakh fine on HSBC Bank for card rule violations
69% of cyber attacks on financial institution were reported by scheduled commercial banks (SCBs), 19% by urban co-operative banks, and 12 per cent by non-banking finance companies (NBFCs), Business Line wrote, citing the RBI’s financial stability report.
What have banks done to protect their customers?
Due to this, banks have increased their insurance cover by nearly 8% in 2023-24, compared to the previous year, Business Standard wrote, citing insurance brokers, and adding that cyber insurance claims by banks increased to over 50% during the financial year 2022-23, compared to 40% during the year before.