Home Articles Why Banking Based Cyber Crimes Need to be Curbed

Why Banking Based Cyber Crimes Need to be Curbed

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According to a report, the number of cyber crimes in 2017-2018 stood at 2,059 cases with a total value of Rs 10.96 billion. Read on to know more about the increasing trend of cyber crimes in banking sector…

Last month, the Reserve Bank of India (RBI) came up with a plan to set up an Integrated Compliance and Tracking System portal to supervise cyber-security measures of payment system providers (PSPs). RBI said that this is related to the increasing cases of cyber risk relevant to the banking sector. RBI also reported that it plans to expand the portal to cover other regulated entities. ‘Payment system providers are required to establish mechanisms for monitoring, handling and follow-up of cyber-security incidents and cyber-security breaches,’ RBI said in its report on Trend and Progress in Banking.

Shocking Statistics
The number of cyber crimes in 2017-2018 stood at 2,059 cases with a total value of Rs 10.96 billion, a steep rise against 1,372 cases of a total value of Rs 423 million in 2016-2017. The RBI said an integrated approach to ensure survivability of PSPs is necessary due to the increasing role of technology in provision of financial services, rapid growth in digital payment ecosystem, high degree of interdependence and interconnectedness between operators in financial markets and increasing diversity of attackers.

“We invest heavily into cyber security measures, but it is not a one time cost. The rapidly changing landscape and technology requires constant vigilance and updation, which requires a lot of funds,” said a technology banker on condition of anonymity.

Last year saw cyber attacks on various banks including City Union Bank, Punjab National Bank, Cosmos Bank and the State Bank of Mauritius. RBI had specified a cyber-security framework for banks in June 2016, which specified that banks would need to immediately put in place a cyber-security policy and get it duly approved by their board. The policy needs to be separate from the broader information technology policy and the cyber-security measures in the banks need to be constantly monitored and routinely tested. The framework also specified reporting requirements and sharing information on cyber-security and risk with the central bank.

Secure Tips to Minimize Banking Frauds
If you have had a credit or debit card for some time, chances are that you would have experienced a fraud or an attempted fraudulent transaction on the same.

Here are some tips to help you prepare for an eventuality and minimize your exposure or loss.

Strong PIN: Do not write the PIN on the back of your card, or keep the PIN mailer along with the card. Do not share your PIN with anyone, including family members, and do not have the same PIN for all your cards. Also choose a PIN that’s easy for you to remember but difficult others to guess. No, it should not be your ‘milestone event’ year. Many people know such details which makes your PIN easy to crack!

Use Secure Password Management App: If you lose your wallet or purse, how do you expect to remember the card numbers and your various banks’ contact centre details to help you block the cards? Use an App like 1Password that will securely store the details of your cards in an encrypted local container on your phone or device. It can also store the data securely on cloud that you can access from any internet — connected device after a robust authentication process. Connect it to a service like Dropbox to recreate your archive in a jiffy, when you modify the data or change or add devices, rather than having to type-in the data all over again.

Locking Your Apps: This sounds a really stupid suggestion, but please enable locks individually for the apps on your phones. And by all means, have a password, biometric tool or pattern to lock the phone itself. It’s a good idea to set-up enhanced security by way of enabling wipeout of a phone in case of 10 or more incorrect password entries for unlock attempts.

Use Trusted Apps: Use only trusted Apps on your phones and tablets. Use Google’s ‘Play Protect’ service before downloading apps from the Play Store on Android devices. Apple’s App Store can be trusted much better not to have rogue apps!

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