Banks throughout India are on high alert following a warning from the Reserve Bank of India about potential cyber threats. The RBI has instructed banks to maintain continuous monitoring of their systems, including SWIFT, the card network, RTGS, NEFT, and UPI, according to a report in the Economic Times.
An advisory issued by the RBI to financial institutions read, “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.”
A few days before the resurgence of LulzSec, a group associated with numerous significant cyberattacks, reports indicated their renewed activity targeting Indian banks, following a period of inactivity.
According to the RBI’s Financial Stability Report, the financial sector has experienced over 20,000 cyberattacks in the past two decades, leading to losses amounting to $20 billion.
How Do Cyberattacks Happen?
According to a December 2023 report from the Data Security Council of India, a quarter of such incidents in India stem from clicking on malicious links found in emails and websites.
Business Line, citing the RBI’s financial stability report, noted that scheduled commercial banks (SCBs) reported 69% of cyberattacks on financial institutions, followed by urban co-operative banks at 19%, and non-banking finance companies (NBFCs) at 12%.
How have banks protected their customers?
In response to this trend, banks raised their insurance coverage by approximately 8% in the fiscal year 2023-24 compared to the previous year, as reported by Business Standard, citing insurance brokers. The report also noted that cyber insurance claims from banks surged to more than 50% in FY 2022-23, up from 40% the previous year.
