According to RBI Annual Report, the amount involved in banking fraud has increased by two and a half times in 2019-20 and it has increased to 1.85 lakh crore rupees. At the same time, it was Rs 71,500 crore in 2018-19.
Cyber attack
Due to the Corona epidemic, the pace of digital payment and work from home has increased significantly and this has given cyber criminals more opportunity to make a dent in the banking sector. Regarding this, S&P Global Rating has informed that the cybercrime cases in the banking sector may have a bad impact on the ratings.
Rating agency S&P Global Rating, in its report titled ‘Cyber Risk in a New Era: The Effect on Bank Ratings’, said that cyber attacks can damage credit ratings mainly through reputational damage and monetary losses.
Banks and other financial institutions are the best targets for cybercriminals because they have the most important data of the people and they cater to the financial needs of the people. Credit analyst Irina Veliva said that, so far, cyber attacks have little impact on the bank’s rating, but in the future, it can further affect the rating actions as more cyber incidents are coming up.
Difficulties increase due to weak security
This report says that institutions with weak security are at greater risk of cyber attacks. S&P Ratings said that it is difficult to develop a cyber-risk framework to learn from the old attacks as these attacks are constantly changing. The agency said that cyber defense will become an essential part for all and for this, more excellent tools are needed.
Two and a half times increase in cases of banking fraud
According to RBI Annual Report, the amount involved in banking fraud has increased by two and a half times in 2019-20 and it has increased to 1.85 lakh crore rupees. At the same time, it was Rs 71,500 crore in 2018-19.
Internet banking systems work with the help of a large application, networking device, Internet service provider and other things. All these things can be an important link for cyber attackers, so that they can commit fraud.
In addition, many banks and financial institutions use third-party service from other merchant and financial technologies. If these external companies do not have the necessary security setup, then the bank may face a lot of trouble.
Thugs make such people their prey
Hackers copy the website URLs of these banks and financial institutions to create a similar website and when customers login to these websites, the thugs get the opportunity to use these data. You can also use the financial data and personal information of cyber criminal people to use another fraud. In the privacy of the bank, a burglary can deliver the data of customers on the dark web which can also be used by other cybercriminalisations.
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