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