As India braces for digital payments future, how secure are banks from cyber attacks?
As the government presses ahead with a cash to less cash to cashless economy, the success of the transition will depend on how the battle between bankers and hackers plays out. Bankers must upgrade and fortify their cyber defences as hackers attempt to pinch funds from banks or steal credit/debit card details of retail customers daily. If suddenly the easiest way to buy anything from soft drinks to cars is to use the mobile wallet, a few clicks of the mouse are all that is required to rob a bank.
True, in a country with 98% cash in circulation, electronic payments replacing cash will not be easy and will take time. But since demonetisation kicked off on November 8, digital payments have got a fillip. That has opened up more opportunities for cyber pickpockets to try and steal card details, PINs, mobile wallets and siphon off money. “India has been at the lower end of frauds as volumes were low. Now, I suspect that will change as digital payments volumes surge,” says R Venkatachalam, managing director, India & South Asia, FIS Global.
Akhilesh Tuteja, partner and global head of cyber security, KPMG says if the benefits of digital payments are exponential, so are the risks. India’s central banker itself flagged off concerns in this regard. In an October note, RBI deputy governor SS Mundra said one of the key targets by the attackers is the credential of the customers, as it provides the key to the ‘khazana’ (treasure). “Recent experience shows involvement of organised gangs and nation-state actors having huge financial backing. On the other hand, the cost of orchestrating such attacks is coming down. There are several reports indicating availability of credentials of customers for sale in dark web, which is really scary.”
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