INDIAN BANKING SECTOR- New Target for Cyber Criminals!

In this era of Digitization, the Banking sector in India has revolutionized itself tremendously. Banks are now providing faster, efficient, convenient, and better services to the customers, 24*7 with the help of Information Technology. E-banking services have made it possible for customers to do transactions within a click! Now banking services are available anytime, anywhere through ATMs, NEFT/RTGS, e-wallets etc.

However, the increase in use of Information technology in the Banking sector, has given rise to cyber crimes. Banks are more prone to cyber attacks, because in comparison to other organizations, that is where most amount of money is. Banks are becoming targets of cyber crimes on a daily basis, with cyber threats coming in every day, at national and international level. Majority of the times, Cyber crimes are committed to gain unauthorized access into a user’s account, steal their personal and sensitive information, and fraudulently transfer money from one account to the other. 

Types of Banking services that are targeted by cyber criminals

Cyber criminals are working round the clock to come up with newer ways of attacking. Some of the methods used by them are:

Virus
A computer virus is malicious code that replicates by copying itself to another program, computer boot sector, or document and changes how a computer works. The virus requires someone to knowingly or unknowingly spread the infection without the knowledge or permission of a user or system administrator.

Worms
A computer worm is a self-replicating computer program that penetrates an operating system with the intent of spreading malicious code. Worms utilize networks to send copies of the original code to other computers, causing harm by consuming bandwidth or possibly deleting files or sending documents via email.

Spam emails
Email spam, also known as junk email, is a type of electronic spam where unsolicited messages are sent by email. Many email spam messages are commercial in nature but may also contain disguised links that appear to be for familiar websites but in fact lead to phishing web sites or sites that are hosting malware. Spam email may also include malware as scripts or other executable file attachments.  

Trojans
Trojan, is any malicious computer program which is used to hack into a computer by misleading users of its true intent. Trojans may allow an attacker to access users' personal information such as banking information, passwords, or personal identity (IP address).

Ransomware
Ransom-ware is a type of malicious software that blocks access to the victim's data or threatens to publish or delete it until a ransom is paid.

Malware
Malware, short for malicious software, is any software used to disrupt computer or mobile operations, gather sensitive information, gain access to private computer systems, or display unwanted advertising.

Vishing
It is the fraudulent practice of making phone calls or leaving voice messages purporting to be from reputable companies in order to induce individuals to reveal personal information, such as bank details and credit card numbers.

Phishing
Phishing is the attempt to obtain sensitive information such as usernames, passwords, and credit card details (and, indirectly, money), often for malicious reasons, by disguising as a trustworthy entity in an electronic communication.

Denial-of-service(DoS)
A denial-of-service attack (DoS attack) is a cyber-attack where the perpetrator seeks to make a machine or network resource unavailable to its intended users by temporarily or indefinitely disrupting services of a host connected to the Internet.

Card Skimming
Card skimming is the act of using a skimmer to illegally collect data from the magnetic stripe of a credit, debit or ATM card. This information, copied onto another blank card's magnetic stripe, is then used by an identity thief to make purchases or withdraw cash in the name of the actual account holder.

Hacking
Hacking means an unauthorized access made by a person to cracking the systems or an attempt to bypass the security mechanisms, by hacking the banking sites or accounts of the customers.

Spyware
It is a software by way of which online banking credentials are stolen and used for fraudulent activities. Most of the times it is installed through “pop-up” ads.

Credit card fraud
Credit card fraud is committed by making use of credit/debit card of others for obtaining goods or services. The threat emerges due to stealing of information like Credit card number, PIN number,password etc. Hackers use complex techniques like Phishing, Skimming etc. to gain credit card information from innocent users.



With the increase in the number of crimes, Banks need to take cyber security more seriously. The Banks need to seek ways to combat cyber attacks by implementing cyber security frameworks and systems. The Reserve Bank of India (RBI) has provided guidelines for Banks on Cyber security framework, Information Security, Electronic Banking, Technology Risk Management and Cyber Frauds. However, some Banks are still hesitant to implement necessary security measures. The Banks are struggling to cope up with the advance in technology and the risks attached to it. Therefore, the danger of an attack is still omnipresent as cyber crime continues to remain a difficult challenge for the Banks.

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