RBI warns banks about cyber attacks, these banks are facing the most risk

Banks across India are on high alert after the Reserve Bank of India (RBI) announced potential cyber attacks. Through this high alert, banks have been asked to constantly monitor their systems like SWIFT, card networks, RTGS, NEFT and UPI. This information has been given in the Economic Times report.

The advisory issued by the Reserve Bank of India to financial institutions said, “In view of credible intelligence received regarding potential cyber attacks, regulated entities are advised to enhance surveillance and resilience capabilities to counter these threats.”

Know why RBI is worried?

The incident comes just days after a group called LulzSec, allegedly linked to several high-profile attacks targeting Indian banks, became active again after being dormant for some time, the Economic Times wrote. According to the RBI’s Financial Stability Report, there have been more than 20,000 cyber attacks on the financial sector in the last 20 years, resulting in losses of $20 billion.

How do cyber attacks happen?

According to a December 2023 report by the Data Security Council of India, 25% of such attacks in India occur through clicking on malicious links in emails and websites. Citing the RBI’s Financial Stability Report, Business Line writes that 69 percent of cyber attacks on financial institutions were reported by scheduled commercial banks (SCBs), 19 percent by urban cooperative banks and 12 percent by non-banking finance companies (NBFCs).

What have banks done to protect their customers?

Due to this, banks have increased their insurance cover by about 8% in 2023-24 compared to the previous year, Business Standard wrote, citing insurance brokers, adding that cyber insurance claims by banks have grown to over 50% during the financial year 2022-23, compared to 40% during the previous year.

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