Importance of Cybersecurity in BFSI: A Matter of Urgency

Modern age is considered as the ‘Digital Age’ since Internet has provided various technologies for a convenient online service. Banking, Financial Services and Insurance (BFSI) industry has incorporated this digital service for online transaction. Due to the growing popularity of cashless transaction along with the recent pandemic situation of COVID – 19, banking and financial sectors have implemented the process of digitalization on front-end as well as back-end operations. However, this particular industry is simultaneously becoming the main focus for cyber attacks and security breaching.

Types of Cyber Threats

• Data encryption: Data not being encrypted would lead to a massive impact on financial institutions.
• Malware: Computers or mobile devices with malware would pose a massive threat to a bank network.
• Third party services: Third party vendors with weak cybersecurity system would negatively impact on a bank network.
• Phishing: The process of phishing has constantly evolved as technology progress and it is one of the popular ways to get access to personal details.

Why Cyber Security is crucial for BFSI

The digital age has encouraged individuals to conduct cashless transactions through online payments. Online payment platforms such as Google Pay and Paytm are providing online payment methods with bank accounts. Therefore, it is crucial to protect online privacy of customers with cyber security measures. Data is perhaps the most valuable object in the world of digital age. Data related to bank account no, username, password, mutual fund details and other personal information must be protected securely to prevent unauthorized access. A weak online security system would result in security threats and unauthorized data breaching would lead to a massive amount of financial loss. Once a financial database is breached, data recovery can be very time consuming as well as stressful. Therefore, appropriate cyber security measures needs to be taken to prevent data hacking.

Hacking Incidents

In 2018, security system of Pune based Cosmos bank was breached. A group of hackers managed to get access into the ATM server of the bank and obtained ATM card details. Over Rs. 90 crore was stolen from the bank accounts database. In that same year, another group of hackers targeted the ATM server of Canara Bank and obtained ATM details of 300 users. They managed to steal almost Rs. 20 lakh from multiple bank accounts. In 2021, US based financial corporation called CNA Financial has suffered a ransomware attack that has disrupted the workflow. The company was unable to conduct customer service and employee procedure for three days. These incidents clearly indicate that there is an urgent need to incorporate modern cyber security measures in BFSI sectors.

BFSI Measures on Cybersecurity issues

BFSI sectors should incorporate integrated security with recent technical updates for a secured network. Monitoring of cloud security on a regular basis, strict policies on access management and data encryption should be the main focus on cybersecurity. Hope this blog provides you sufficient knowledge regarding the importance of cybersecurity in BFSI. Prime Infoserv LLP organization focuses on IT solutions and information security. We deliver solutions based on enhanced performance, low cost and less risk. Please go through our website https://primeinfoserv.com for more blogs on cyber security. Write to us at info@primeinfoserv.com or contact us at +913340085677 for queries.