Ye Lamhe is Giv­ing us Sadma

De­ploy­ing a blockchain sys­tem could have pre­vented tam­per­ing of the SWIFT sys­tem in case of Pun­jab Na­tional Bank

PCQuest - - TECH MUSINGS - – Anushruti Singh anushrutis@cy­ber­me­dia.co.in

All of us who have been en­am­ored of her act­ing skills….a su­per­star who could also act… And all of us be­long­ing to the male prog­eny who have fan­ta­sized about her sexy eyes and her doll like child­ish voice.

And yes all of us are sad by her un­timely demise, es­pe­cially the mode of it far away from her own land. Sridevi as a su­per­star will al­ways de­serve to be in our hearts and yes I ad­mit that her death too would cause enough con­ster­na­tion to be high­lighted as prime time news across elec­tronic, so­cial, dig­i­tal and print me­dia.

How­ever, what pains me in­or­di­nately is the way both elec­tronic as well as the so­cial me­dia have gone over­board in dis­sect­ing the rea­sons be­hind her un­timely demise. True, it was my FB con­nects through which I woke up to this sad news on a Sun­day morn­ing. But the way events are pan­ning out now across all modes of me­dia looks to me noth­ing else than sa­ti­at­ing the voyeurism of the In­dian pub­lic.

First to blame are the TV anchors in the elec­tronic me­dia. Know­ing fully well the po­ten­tial to ex­ploit the TRP value of this sen­sa­tional news (yes ac­ci­den­tal death of a beauty is sen­sa­tional), they are go­ing all out in fur­ther tit­il­lat­ing the lap­ping au­di­ence. De­bates fea­tur­ing doc­tors, psy­chol­o­gists, po­lit­i­cal an­a­lysts, all and sundry are oc­cu­py­ing all the prime time since the las few days.

Whether she died of a car­diac fail­ure or she drowned in an al­co­holic stu­por, the fact of the mat­ter is it’s a sad time for her fam­ily and they should be al­lowed to grieve in pri­vate. What all th­ese thread­bare analy­ses are do­ing is noth­ing short of dis­cussing all sorts of in­nu­en­dos and spec­u­la­tive facts and fic­tions and put­ting it un­der the garb of ex­pert views.

So­cial me­dia is fur­ther adding fuel to this ru­mor mon­ger­ing as well as vague spec­u­la­tions be­ing bandied around. The amount of FB posts, WhatApp for­wards, tweets I have seen on this whole af­fair is mind­bog­gling. (I will ad­mit I my­self am to blame for some of th­ese). But this in­tru­sive na­ture of so­cial me­dia barg­ing into the life of cause cele­bres is in­deed very dis­turb­ing and un­wel­come. True celebri­ties crave for pub­lic adu­la­tion, but at least in death they should be gven their dig­nity. Es­pe­cially not pub­lish­ing or show­ing dis­turb­ing pho­tos like her body float­ing on a bath­tub.

True tech ad­vance­ments have led to so much progress in so­cial me­dia us­age and adop­tion as well as elec­tronic me­dia view­er­ship, but I strongly feel that should not be at the ex­pense of vi­o­la­tion of some­one’s pri­vacy as well as dig­nity. I am sure the Chaal­baaz, Roop Ki Rani, Ms Hawa Hawaii would have agreed with me.

Yes all of us are mourn­ing the demise of Kh­wabon Ki She­hzadi….the Bi­jli Ki Rani….

“Un­for­tu­nately, the fraud­sters have also started us­ing in­no­va­tive meth­ods to mis­use the bank­ing sys­tem. At the same time tools and tech­niques such as real time neu­ral net­work based be­hav­ior mod­els and foren­sic ac­count­ing are al­ready chang­ing the face of fraud de­tec­tion and pre­ven­tion.” DR. PREETI GOYAL , Pro­fes­sor — Fi­nance & Ac­count­ing, Great Lakes In­sti­tute of Man­age­ment

Bank­ing sec­tor is the en­gine of eco­nomic growth and any mal­func­tion in this en­gine sends shiv­ers down the en­tire econ­omy. In the re­cent years, banks have achieved phe­nom­e­nal growth which has pre­dom­i­nantly been en­abled by tech­nol­ogy. But hu­man in­ter­ven­tion can lead to sit­u­a­tion where one can not imag­ine. PNB fraud case is also a case of tech­nol­ogy v/s hu­man in­ter­ven­tion. If see­ing it from a tech­nol­ogy as­pect, the case could be con­sid­ered as a hack in the sys­tem how­ever it is in­deed more of a bank break-in rather than con­sid­er­ing as a cy­ber crime.

In the wake of PNB SWIFT-re­lated fraud in­volv­ing sig­nif­i­cant amount, RBI also re­it­er­ated its con­fi­den­tial in­struc­tions and man­dated the banks to im­ple­ment, within the stip­u­lated dead­lines, the pre­scribed mea­sures for strength­en­ing the SWIFT op­er­at­ing en­vi­ron­ment in banks.

Dr. Preeti Goyal a pro­fes­sor of Fi­nance & Ac­count­ing at Great Lakes In­sti­tute of Man­age­ment in Gur­gaon says, “In the com­ing years this sec­tor is ex­pected to wit­ness ex­plo­sive changes and growth with the use of newer tech­nolo­gies such as NFC, block chains, robotic process au­to­ma­tion etc. Un­for­tu­nately, the fraud­sters have also started us­ing in­no­va­tive meth­ods to mis­use the bank­ing sys­tem. At the same time tools and tech­niques such as real time neu­ral net­work based be­hav­ior mod­els and foren­sic ac­count­ing are al­ready chang­ing the face of fraud de­tec­tion and pre­ven­tion. This is like a cat and mouse game be­tween the banks and fraud­sters and tech­nol­ogy re­mains both a root cause as well as the solution to this.”

While the Ni­rav Modi fraud has been high­lighted as a tech­nol­ogy fraud, the fo­cus should ac­tu­ally be on the lack of in­ter­nal con­trols, checks and bal­ances that led to this sit­u­a­tion. It is not that bank frauds did not hap­pen prior to the use of tech­nol­ogy. Many of us will re­call how Har­shad Me­hta duped the bank­ing sys­tem of crores of ru­pees in late 1980s – at that time it was said if banks were au­to­mated; it may have been pos­si­ble to pre­vent the fraud.

“There is no nir­vana to pre­vent bank fraud. The solution lies in strength­en­ing the in­ter­nal con­trols, checks and bal­ances and at the same time in­vest­ing in lat­est tech­nol­ogy and train­ing peo­ple to use it.” She adds.

While this fraud has oc­curred at one of the branches of PNB, it would even­tu­ally af­fect other Banks in In­dia and out­side In­dia due to na­ture of such con­tracts. If PNB backs out of its obli­ga­tions to pay and takes le­gal route, other banks will also a take a hot.

“As we have seen in past, such frauds are not lim­ited to one branch and we may see other Banks un­earthing sim­i­lar frauds in near fu­ture in one of their branches. Con-

sider­ing that Pub­lic sec­tor Banks in In­dia are Gov­ern­ment backed, there is no im­me­di­ate threat on ex­is­tence of any of banks. How­ever, such news weak­ens the faith of In­dian Pub­lic and In­ter­na­tional in­vestors in the Bank­ing sys­tem. This is not a good news and will have long term reper­cus­sions for In­dian bank­ing sys­tem as a whole. This is also a fi­nal wake up call for banks to put their house in or­der.” Says Ra­jeev Ma­ha­jan, Co-Founder, CEO and Di­rec­tor at Ant­works Money, also the Ex-Se­nior Pres­i­dent – MNC In­fra­struc­ture, Yes Bank.

Blockchain Tech­nol­ogy Can Help Avoid Scams

There has been some un­rest among peo­ple re­gard­ing the safety of their money de­posited in the banks due to the re­cent turn of events re­lated to bank frauds.

“Fi­nan­cial ser­vices are the life­line of any grow­ing econ­omy and such in­ci­dents could tar­nish the im­age of the bank­ing sys­tem with much wider im­pli­ca­tions.”

The above state­ment made by Sandesh Hegde, Part­ner­ships and Al­liances Head at XinFin, is very true and fi­nan­cial in­dus­try has al­ways tried its best to keep the trans­ac­tions and cur­rency ex­change process as se­cure as pos­si­ble be­cause the risks in­volved are too big.

For ex­am­ple, let­ters of un­der­tak­ing (LoU) is a de­voted trade fi­nance in­stru­ment which in­cludes buyer credit ser­vices also. It is im­por­tant be­cause many times im­porters may refuse pay­ment af­ter ship­ment de­liv­ery or ex­porters might not make timely de­liv­ery af­ter get­ting an early pay­ment. Sim­i­larly, there are SWIFT (So­ci­ety for World­wide In­ter­bank Fi­nan­cial Telecom­mu­ni­ca­tion) IDs and CBS (Core Bank­ing Sys­tem) to en­sure that in­ter­na­tional bank­ing is se­cure and ef­fi­cient. How­ever, not all th­ese tech­niques are scam-proof which is ev­i­dent if we fol­low cur­rent events.

Also, if this would have been older times no one

“How­ever, such news weak­ens the faith of In­dian Pub­lic and In­ter­na­tional in­vestors in the Bank­ing sys­tem. This is not a good news and will have long term reper­cus­sions for In­dian bank­ing sys­tem as a whole. This is also a fi­nal wake up call for banks to put their house in or­der.” RA­JEEV MA­HA­JAN Co-Founder, CEO & Di­rec­tor Ant­works Money

“Fi­nan­cial ser­vices are the life­line of any grow­ing econ­omy and such in­ci­dents could tar­nish the im­age of the bank­ing sys­tem with much wider im­pli­ca­tions.” SANDESH HEGDE Part­ner­ships and Al­liances Head XinFin

Yes all of us are mourn­ing the demise of Kh­wabon Ki She­hzadi…. the Bi­jli Ki Rani….

Ra­jneesh De, Group Edi­tor ra­jneeshd@cy­ber­me­dia.co.in

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