RBI Deputy Governor B P Kanungo has said social media platforms provide opportunities for cyber attackers to access information of individuals, which may be used for fraudulent purposes.
"Social media provides the platform required for an attacker to mine information on an individual. This information is then used to make the user believe that he is communicating with a legitimate source," Kanungo said in a message here.
Kanungo was scheduled to attend an awards function organised by the Institute for Development and Research Banking Technologies here. As he did not attend the programme, his message was read out by RBI's Executive Director Ganesh Kumar.
"With easier access to social media and the tendency to share personal information, the numbers of users that are exposed to such attacks will continue to increase. Thus, it has become an accepted culture that we get unsolicited requests and responding to these is taken as a normal activity. This needs to be stopped, especially for IT-based banking," he further said.
Kanungo further said that while IT improves the quality of life and makes tasks more efficient, it also brings with it innumerable risks, which at times could countermine the very benefits it offers.
Cyber security thus needs to be addressed adequately and continuously as new fronts open up even after incorporating systems and taking necessary steps to cover these threats, he opined.
"The Reserve Bank, as the regulator of banks in India thus considers it of prime importance that banks ensure adequate safety and security of their IT systems. This is where fintech can play a vital role," he said.
According to him, cyber attackers have changed their strategies as the mere unauthorised access to IT systems of banks is now not a possibility since access to the main IT systems of banks are now highly complex and available only to authorised users.
"Banks are making significant efforts to educate the user on safe banking, but it is often found to be inadequate in the face of a targeted attack," he said.
He opined that the current approaches towards cyber security are either inefficient or ineffective due to two reasons- fraudsters are very clever and are are usually well organised groups.
"If cyber security has to be effective, there needs to be a framework to combat cyber incidents. Current approaches in this regard are either inefficient or ineffective due to two reasons: firstly, the educational approaches usually take a long time to reach most of the public, and fraudsters are very clever and able to bring upon new scenarios to victimise people within a relatively short time.
"Secondly, fraudsters are usually well-organised groups, which results in an asymmetric war between individuals and the fraudsters. Techniques should be developed to empower individuals and prevent them from being victimised," he said.
According to Kanungo, fintechs are playing a vital role in emerging areas of payment and settlement systems though there are some challenges....