According to the RBI’s Financial Stability Report, the financial sector has faced over 20,000 cyber attacks in the last 20 years, resulting in losses of $20 billion
Banks across India are on high alert following a warning from the Reserve Bank of India (RBI) about potential cyber attacks. The Economic Times reported that banks have been instructed to constantly monitor critical systems such as SWIFT, the card network, RTGS, NEFT, and UPI.
“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,” read an advisory issued by the RBI to financial institutions.
The warning comes shortly after LulzSec, a group known for high-profile cyber attacks, reportedly became active again after a period of dormancy. This timing has raised concerns among banking officials.
According to the RBI’s Financial Stability Report, the financial sector has faced over 20,000 cyber attacks in the last 20 years, resulting in losses of $20 billion. The Data Security Council of India reported in December 2023 that 25% of these attacks in India were due to clicking on malicious links in emails and websites.
The RBI’s report indicates that 69% of cyber attacks on financial institutions were reported by scheduled commercial banks (SCBs), 19% by urban co-operative banks, and 12% by non-banking finance companies (NBFCs).
In response to the increased threat, banks have boosted their insurance cover by nearly 8% in the 2023-24 financial year compared to the previous year, according to Business Standard. Additionally, cyber insurance claims by banks rose to over 50% during the 2022-23 financial year, up from 40% the year before.
These measures reflect the heightened vigilance and proactive steps being taken by banks to safeguard their systems and protect their customers from cyber threats.
