Cyber
crimes in India are on rise thanks to the growing use of
information technology. With limited numbers of cyber
law firms in India, these cyber crimes are not reported
properly. Even the cyber
security of India is still catching up with the present
requirements.
Cyber
security of banks in India is also not upto the mark. The
mobile
banking cyber security in India is also missing. The
preventive
measures for ATM frauds in India are also missing. The
truth is that Indian
banks are poor at cyber security. The online
banking risks in India are increasing due to this
indifference towards cyber security.
RBI has recently issued a report titled Report on
Trend and Progress of Banking in India 2011-12. RBI needs banks to
build a robust mechanism to prevent incidents of fraud in areas of
mobile/net banking and electronic fund transfer. RBI has already
issued guidelines pertaining to national
electronic funds transfer (NEFT) system of India but banks
in India are not providing positive confirmations of NEFT
transactions.
Ensuring effectiveness of the banking sector by way
of technology combination while minimising the incidences of
fraudulent cases has become one of the major objectives of the RBI in
recent years.
According to RBI, complaints related to unauthorised
fund transfers, fraudulent withdrawals from ATMs using duplicate
cards, phishing e-mails aimed at extracting personal information have
registered significant increase in recent times. RBI’s ombudsman
office is already flooded with ATM
related complaints in India.
RBI must take a hard stand against defaulting banks
who have not adopted sound cyber security policies and strategies for
Internet banking and other online financial transactions.
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