Lax Re­port­ing by Banks Spoils Ar­rest of Cy­ber Crime: Dy Guv

The Economic Times - - Finance & Commodities - Our Bu­reau

Mum­bai: The Re­serve Bank of In­dia has said that In­dian banks are be­ing lax in re­port­ing cy­ber at­tacks to the reg­u­la­tor ex­pos­ing the fi­nan­cial sys­tem and that state run banks are at a higher risk of such crimes than their pri­vate peers.

In­dian banks do not have the skilled hu­man re­sources to tackle the ris­ing fraud – both on­line and in phys­i­cal trans­ac­tions – though they are hir­ing peo­ple, said SS Mun­dra, RBI deputy gov­er­nor.

“RBI has man­dated that all un­usual cy­ber-in­ci­dents have to be re­ported within 2-6 hours in­vari­ably. We ob­serve that banks take much longer time in re­port­ing the in­ci­dent,” Mun­dra said at a sem­i­nar on ‘Fi­nan­cial Crimes Man­age­ment’ re­cently. “Bar­ring a few banks, the gaps are in­deed sig­nif­i­cant, more so in re­spect of pub­lic sec­tor banks. This war­rants im­me­di­ate and con­tin­ued at­ten­tion of the Board and the se­nior man­age­ment of banks.”

Cy­ber at­tacks on In­dian banks are on the rise. Data on 3.2 mil­lion cards were com­pro­mised re­cently ex­pos­ing cus­tomers to losses. But the prob­lem for the reg­u­la­tor has been that banks hide in­for­ma­tion about cy­ber at­tacks fear­ing neg­a­tive pub­lic­ity which makes preven­tion of such at­tacks also dif­fi­cult.

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