Bank Cyberattacks Surge as Security Deadline Nears

Of all cyber incidents reported by regulated entities during Jan 2019-Mar 2024, 69% were by commercial banks

- Vishal Mathur

The January deadline for banks to adopt the Securities and Exchange Board of India (Sebi) guidelines on cybersecurity framework is approaching amid rising cybercriminal attacks on India's banking and financial institutions. Banking and payment apps require new layers of underlying security to combat these threats, experts have said.

According to online security firm Check Point's latest Threat Intelligence Report, banking and financial institutions in India experienced an average of 2,525 cyberattacks in the six months leading to December. This number is significantly higher than the global average of 1,674 attacks per financial organization, raising concerns for India's banking and payments establishments.

"Cybersecurity serves as the backbone of customer confidence, ensuring financial stability and operational resilience. The trust customers place in banks is safeguarded by the quiet but powerful guardians of cybersecurity," said Sundar Balasubramanian, managing director for India and SAARC at Check Point Software Technologies.

A ransomware attack on tech system provider C-Edge Technologies in July disrupted payment systems for nearly 300 smaller banks in the country, temporarily taking them offline.

The security challenge encompasses two main elements—banks where users place savings in accounts, and payment networks enabling digital transactions through credit cards and UPI. Cybercriminals have fast-improving methods, including use of generative artificial intelligence.