Threats, Challenges and Solution The growth of digital banking in India is unquestionably beneficial to the country. If this move succeeds, it will reduce tax evasion, eliminate the black economy, and reduce the annual cash operations-led economic cost of Rs. 21,000 crore, all of which are clear markers of enhanced growth.
But there’s more to it than meets the eye: expanding digital payments is a clear invitation to cyber criminals all across the world, making India increasingly vulnerable to cyber crime.
Cyber security dangers have increased dramatically as a result of increased digitization. You may have heard recently about the theft of billions of dollars from the world’s top financial institutions. As the globe becomes more digitally connected, fraudsters have more entry points; as a result, cyber security in digital banking is more important than ever. There have been similar incidents at high tech banks.
What role does cyber security play in digital banking?
Cybersecurity
When it comes to mobile transactions, even Indian banking apps and mobile wallet apps lack hardware-level security, putting these transactions at danger. Despite the fact that mobile phones hold sensitive personal data such as Aadhaar card details and the user’s fingerprints, there is no hardware requirement in India for mobile banking and e-wallet applications.
Cyber security dangers have increased dramatically as a result of increased digitization. You may have heard recently about the theft of billions of dollars from the world’s top financial institutions.
As the globe becomes more digitally connected, fraudsters have more entry points; as a result, cyber security in digital banking is more important than ever. There have been similar incidents at high tech banks. Banks must have good cyber security because data breaches can make it difficult to trust financial institutions. Banks may experience severe troubles of this.
Cyber security in digital banking maintains the security of your sensitive data, which if released could result in a slew of problems, namely fraud. If one’s data isn’t guarded by Cyber security, it can be simply hacked. In the situation of cyber crime, a patient may suffer significant financial loss as well as mental anguish.
Cyber security Threats in Digital Banking Your sensitive data may be at risk if you don’t have a strong Cyber security strategy in place. In this section, we’ll go through the most serious risks to bank cyber security.
1. Unencrypted Data – It is one of the most common hazards faced by banks, in which data is left unencrypted and is immediately used by hackers or cyber criminals, causing serious problems for the financial organisation. All data kept on computers in financial institutions or on the internet must be completely encrypted. It will ensure that fraudsters would be unable to utilise your data even if it is stolen.
2. Malware – End-to-end devices, such as PCs and mobile devices, are frequently used to conduct digital transactions, so they must be protected. If it’s infected with malware, it might put the bank’s cyber security at danger every time they connect to your network.Sensitive data goes across this network, and if a user device has malware placed on it without any security, that virus might constitute a major threat to the network of your bank.
3. Third-Party Service – To better serve their customers, many banks and financial institutions leverage third-party services from external providers. However, if these vendors do not have stringent Cyber security measures in place, the bank that hired them will be severely harmed.
4. Spoofing – This is amongst the most recent issues of cyber that banks have to manage with. The cyber criminals will spoof a banking website’s URL with a website that looks and behaves similarly to the real, and when the user enters his or her login credentials, the criminals will collect those credentials and use them later. This cyber threat has evolved to the next level, with attackers employing new spoofing techniques. They do this by using a similar URL and relying on users who go to the correct URL.
5. Phishing – Phishing is the act of posing a trustworthy entity in an electronic voice in order to get sensitive information such as credit account numbers and also other personal information for nefarious ends. Phishing scams affecting online banking have altered. They appear to be authentic and real, yet they trick you into signing over your account details.
Cyber security in Digital Banking Attack Cases
The Cyber crime has surged like never before, according to a global economic crime survey, and is now the top recorded economic crime. The Cyber criminals have discovered new ways to attack and breach data as the world has gone digital.
Banks in India have been targeted by organised criminals and hackers on a regular basis. It was demonstrated in a recent example involving Canara Bank, in which a hacker attempted to stop some of the bank’s e-payments by putting a rogue page on the bank’s website.
Digital Banking
Another example of a cyber attack in digital banking occurred with Union Bank of India, which resulted in a significant loss. The attackers got access to the system by using fake RBI IDs, and one of the officials fell for the phishing email and clicked on a suspicious link, allowing the virus to infect the system. A large loss was prevented thanks to the Union Bank of India’s quick action. It was only feasible because the bank was prepared to respond to an incident.
What are the issues that digital banking faces in terms of cyber security?
Issues while digital payment
Some of the issues have made cyber security in digital banking a critical challenge.
1. Lack Of Awareness – People’s understanding of cyber security is low, and few businesses spend on training and raising people’s overall cyber security awareness.
2. Lack of Management & unequal Budgets : Cyber security is given a low priority, and as a result, it is frequently overlooked in budgeting. Cyber security remains a low priority for top management, and support for such programmes is likewise minimal. This could be because they underestimate the severity of the threats.
3. Identity and Access Management Is Inadequate – Identity and access management has long been a critical component of cyber security, particularly in these times when hackers have the upper hand and only one hijacked credential is required to get access to an organisational network. Although there has been some progress in this area, there is still much more work to be done.
4. Ransomware is on the rise – Recent computer attacks have drawn our attention to the growing threat of ransomware. Cyber criminals are beginning to employ techniques to avoid being identified by endpoint security software that concentrates on executable files.
5. Apps and mobile devices – The preponderance of the financial sector have made mobile phones their key messaging platform. As the base becomes larger each day, it becomes a further interesting choice for exploiters. Only with a surge in mobile phone transactions, mobile phones have become a lucrative target for hackers.
What is the solution to the cyber-security danger to digital banking?
There are a few strategies that can be used to mitigate the threat of cyber security in digital banking.
1. Security that is integrated – Because the BFSI[1] is so tightly regulated, banks devote a lot of time, money, and effort to implementing the latest technology, which can be difficult to coordinate at times. It is more beneficial to move toward integrated security, where all components work and communicate together.
2. Big data analytics and machine learning – Analytics is a critical component of maximising cyber resistance. A new generation of security analytics has emerged, capable of storing and analysing massive amounts of security data in real time.
3. Recognize the significance of security – The idea of security as an expense must give way to security as a benefit. Only by analysing the risk of security threats and their impact can the true value of security be realised.
4. Consumer Awareness – It is one of the most crucial areas in which the consumer must be made aware of the importance of not giving their banking credentials to anyone. They must notify the Cyber security cell as early as possible if they observe anyone questionable in their purchases or bank account.
5. Anti-virus and Anti-malware applications – A firewall can help secure your computer, but it won’t stop an attack unless you run up-to-date anti-virus and anti-malware software. Updating the most recent version of an application helps protect your system from potentially disastrous attacks.
Conclusion
Cyber security in digital banking is an issue that must be addressed. The banking industry has become more vulnerable to cyber criminal threats as digitalization has increased. As a result, a flawless Cyber security system is required that does not endanger the security of client and financial institution data and funds.