Page 28 - Banking Finance December 2024

ARTICLE

Cyber Crimes in

Banking: India's

Battle Against the

Digital Menace Dr. Ravindra Shrirang Deshmukh

Sr. Manager-Research officer
Union Bank of India
Union Learning Academy
Bhopal

The increasing adoption of digital banking services has transformed the way Indian consumers
engage with banks. According to research from the Reserve Bank of India (RBI), the country's digital
payment ecosystem expanded by approximately 55% between 2021 and 2023.

Introduction the economy expands, so do cybercrime rates.
Cybercriminals are increasingly attacking digital banking
In today's fast-paced, digital-first world, banking is no longer
limited to physical branches and paperwork. Financial services, taking advantage of lax security and user
transactions are becoming more convenient and accessible ignorance.
as online banking, mobile apps, and digital wallets gain
traction. However, as the financial industry has embraced Common Cyber Crimes in Indian Banking
digital change, a growing threat has emerged: cybercrime. 1. Phishing Attacks:
Cybercriminals have discovered new ways to exploit Phishing remains the most common type of cybercrime
vulnerabilities in India, where the banking sector is in India's financial sector. It involves criminals
constantly expanding. This article discusses the various sorts impersonating official businesses, like as banks, to
of cybercrimes in banking, recent industry data, and the deceive people into disclosing personal information such
proactive actions required to tackle this expanding threat. as usernames, passwords, and credit card numbers. In
2023, phishing schemes targeted users of large banks,
The Digital Shift and Its Risks accounting for more than 40% of cybercrime cases in
India.
The increasing adoption of digital banking services has
transformed the way Indian consumers engage with banks. 2. Ransomware:
According to research from the Reserve Bank of India (RBI), Attacks involving ransomware are becoming increasingly
the country's digital payment ecosystem expanded by common around the world, and India is no exception.
approximately 55% between 2021 and 2023. Unified Cybercriminals encrypt a bank's data or network and
Payments Interface (UPI), mobile wallets, and internet then demand payment to restore access. In 2022, a
banking are among the most popular services. However, as large Indian bank experienced a ransomware attack

BANKING FINANCE | DECEMBER | 2024 | 25