The RBI has issued an alert to banks nationwide in response to tips it received about potential cyberattacks, as per report. They have been instructed to actively check their systems around-the-clock for potential threats.
Banks will need to keep an eye on important payment systems like SWIFT (the messaging system for confirming cross-border fund transfers), the card network (which enables card payments), the online local fund transfer frameworks RTGS, NEFT, and UPI, the real-time payment system, in addition to regularly monitoring network activities and server logs to detect malicious intrusions.
"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," an advisory issued by the Reserve Bank of India to financial institutions read.
It is reported that a group linked to several high-profile attacks – LulzSec has targeted Indian banks few days back. The group has become active after being dominant for some time.
As per RBI's Financial Stability Report, more than 20,000 cyber attacks have taken place in last 20 years which resulted into a loss of $20 billion.
In India, 25% of such attacks happened due to clicking on malicious links in emails and websites, according to a December 2023 report by the Data Security Council of India.
69% of cyber attacks on financial institutions were reported by scheduled commercial banks (SCBs), 19% by urban co-operative banks, and 12 per cent by non-banking finance companies (NBFCs), as per a news source, citing the RBI’s financial stability report.
According to the source, due to this, banks have increased their insurance cover by nearly 8% in 2023-24, compared to the previous year, citing insurance brokers, and adding that cyber insurance claims by banks increased to over 50% during the financial year 2022-23, compared to 40% during the year before.
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