Digital Banking Presents New Threats And Risks
Consumerization of IT is driving the growth in Remote banking and RBI has already issued Mobile banking licenses to 331 Indian banks as of November 2017. There are more than 800 million debit cards and 30 million credit cards in India. Digital Fraud presents the Indian Banking system a risk of approx. 20,000 Cr per year but it’s the “Worst Case Scenario” which keeps the banks on their toes
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BW Businessworld’s ‘Digital Fraud in Banking’ conference in association with Wipro kick-started on 27 November 2017 in Mumbai with the keynote address by Kiran Krishnarao Surve, Head – Financial Risk & Fraud, BFSI at Wipro.
In his address Surve underlined the importance of fraud detection in the digital world. According to him, digital fraud is growing at the rate of 45 to 50 per cent currently and BFSI is the largest business vertical at Wipro. “Customer has become different with the availability of technology and data. Because of this reason, fraud has come in its new roles and ways in the system,” he observed.
Days of digital gives so much of ease to the customers and at the same time, so much of fraud has entered in the system. Surve also explained the ways and methods through what he mentioned as FCM monitoring pillars.
“For cyber protection, we need to predict and detect,” he concluded.
Followed by the keynote address was the panel discussion on ‘The Digital Banking presents new Threats and Risks.’ Butchi Babu Burra, Advisor, Bank of India opined that most of the banks are not prepared for the latest cyber threats. Speaking on the authentication part, Burra said, “We are moving towards biometrics in banking system and it is the better way of authentication.” Burra opined that timely alerts and monitoring will help to protect the customers and prevent fraud. Burra also said “Indian want to protect their wealth. So, awareness campaigns will always be effective.”
Sudin Baraokar, Head – IT, State Bank of India said, “Today, threats have become extremely advanced and the attackers have become so smart to identify what kind of precautions the banks can take, accordingly they design their attacks.” He underlined the importance of getting the core basics to prevent digital fraud in banking system. “The interest of the customer should be prime concern of the banks and there should not be any classification of the customers like rich and poor,” he added. Sudin opined that “CISO’s should play a key role in the DevOps cycle. And CISO’s should put their foot down and block the release of Banking products and services.”
P. C. Panigrahi, General Manager – Financial Inclusion, Union Bank of India explained that the idea of behind linking the Aadhar with the bank account is to protect the payment system. His excitement about “JAM” was palpable i.e. Jandhan, Aadhar and Mobile. Speaking about the bank account number portability, he said that it will improve the service to the customers and the efficiency of the banking sector. “Bank account number portability will disrupt the banking system,” he said. “If cyber hygienic practices are followed by the customers and organisations, most of the digital frauds can be prevented,” he added.