October 18, 2024

“RBI Issues Urgent Cybersecurity Alert to Banks Amid Rising Threats”

The Entrepreneur Bytes Team June 29, 2024 298

In response to escalating cyber threats targeting financial institutions, the Reserve Bank of India (RBI) has issued a stark warning to banks across the country. The RBI’s advisory comes amidst reports of heightened cyber espionage risks, particularly targeting scheduled commercial banks (SCBs), which have reported a significant 69% of all cyberattacks on financial institutions.

RBI Issues Cybersecurity Alert to Banks Amid Rising Threats
RBI Issues Cybersecurity Alert to Banks Amid Rising Threats

In response to escalating cyber threats targeting financial institutions, the Reserve Bank of India (RBI) has issued a stark warning to banks across the country. The RBI’s advisory comes amidst reports of heightened cyber espionage risks, particularly targeting scheduled commercial banks (SCBs), which have reported a significant 69% of all cyberattacks on financial institutions.

The advisory, detailed in the Economic Times, underscores the necessity for banks to bolster their cybersecurity measures immediately. Institutions are mandated to intensify surveillance and fortify resilience capabilities, focusing on critical systems such as SWIFT, card networks, RTGS, NEFT, and UPI.

The concern arises just days after reports surfaced of LulzSec, a notorious hacking group, reactivating with a renewed focus on Indian banks. This development has further heightened concerns within the financial sector, already grappling with a history of cyber breaches that have collectively resulted in substantial financial losses. According to the RBI’s Financial Stability Report, the Indian financial sector has endured over 20,000 cyber attacks over the past two decades, amounting to staggering losses estimated at $20 billion.

The modus operandi of these attacks often involves tactics such as phishing through malicious links embedded in emails and websites, accounting for a significant 25% of reported incidents as per a recent report by the Data Security Council of India.

Reflecting the gravity of the situation, scheduled commercial banks have borne the brunt of cyber incidents, reporting 69% of all attacks, followed by urban co-operative banks at 19%, and non-banking finance companies (NBFCs) at 12%, according to Business Line citing the RBI’s financial stability report.

In response to these threats, banks have escalated their cyber insurance coverage by nearly 8% in the fiscal year 2023-24 compared to the previous year. The surge in cyber insurance claims, which rose by over 50% during 2022-23 alone, underscores the financial sector’s proactive stance in mitigating potential risks and protecting customer assets.

As banks intensify their defensive strategies, the RBI’s directive remains pivotal in ensuring a robust defense against evolving cyber threats, aiming to safeguard financial stability and maintain customer trust amidst an increasingly digitized financial landscape.

Sources By Agencies

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