There is urgent need for IT upgrade in the banking industry to counter cybercrime, says a report by Deloitte India. Mentioning upgrades in the IT infrastructure, the professional services network also said that the industry needs to appoint experienced chief risk officers to effectively deal with incidents of cybercrime.
According to Deloitte's report, the banking sector is the most vulnerable and targeted for cybersecurity attacks, accounting for nearly 22% of total attacks in India in 2018-2019.
"...these (cyber) attacks are becoming complex day by day. To address these challenges, banks need to appoint experienced Chief Risk Officers who can take the responsibility of skilling the employees and lead investment in military-grade cybersecurity solutions to detect the most advanced attacks," said the report, titled "Digitizing the post COVID world: The '3I' approach."
Highlighting some positives, the report mentioned that the banking sector has been rather quick to acclimatise to the changing demands by expediting efforts toward contactless business operations, as well as coming up with digital reforms in order to enable employees to work from home post the lockdown.
As a potential threat to these digital developments, the report also mentioned that owing to the technological integration, the sector has been facing several challenges with respect to ensuring data security.
The advent of the COVID-19 pandemic had severely disrupted banking operations with measures suhc as lockdown acting as hindrances in banking services. In the following months, banks accelerated their digital transition efforts (such as digital banking and remote access to employees) to ensure contactless business operations.
"With a surge in digitisation, banks also witnessed a spike in cyber attacks as cybercriminals found new opportunities and vulnerabilities," it said.
Munjal Kamdar, Partner at Deloitte India said that for bank executives, the focal point will remain achieving business goals even as calibration strategies are employed to address the ever-evolving cyber risks. Such transformative digitisation will result in an increased attack surface, he said, adding that the reason for digitisation was to sustain the business during and after the pandemic.
Kamdar also specified the challenges banks would face related to the sophistication of cybercrimes; they would have to safeguard data and efficiently use it through a sound data-sharing mechanism; appropriate data lifecycle management; and come up with rules for ethical ownership of data.
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