BS BFSI Summit: Banking experts emphasise customer vigilance on cyber fraud

Banking industry leaders highlight growing cybersecurity challenges and customer education efforts while speaking with Manojit Saha at Business Standard BFSI Insight Summit

Cybersecurity has become a "cat and mouse game," with customers inadvertently revealing their credentials to fraudsters posing the biggest risk, according to top banking leaders at India’s biggest banking, financial services, and insurance (BFSI) event, the Business Standard BFSI Insight Summit, on Thursday. Speaking with Business Standard’s Manojit Saha, N Kamakodi of City Union Bank, Baldev Prakash of J&K Bank, Pralay Mondal of CSB Bank, and Tushar Vikram of Mashreq Bank India shared insights on the growing complexity of cyber threats and the need for enhanced security measures, resilience, and customer education.

 

‘Thief always ahead of the police’: N Kamakodi

N Kamakodi, managing director and chief executive officer of City Union Bank, described how cybersecurity has evolved alongside technological advancements, from manual ledgers to core banking and now digital ledgers.

 

However, he acknowledged that cybersecurity threats continue to outpace preventive measures, likening it to "a thief always being ahead of the police."

 

Kamakodi noted that most fraud cases arise from customers unintentionally sharing sensitive information, though banks also face sophisticated system attacks.

 

“From multiple levels, day in and day out, resources are allocated to stay one step ahead of attackers. We have to rigorously follow protocols every day and then hope for the best,” he said.

 

‘Ensure customer trust in the system is not lost’: Baldev Prakash

J&K Bank’s managing director and chief executive officer Baldev Prakash said cybersecurity is now an "existential challenge" rather than merely a regulatory requirement. Cyber incidents impact not only finances but also a bank’s reputation.

 

Prakash said his bank has dedicated budgets specifically for IT and cybersecurity, underscoring the importance of safeguarding customer trust. J&K Bank conducts regular customer awareness sessions, which he believes are essential in strengthening public resilience against fraud.

 

“If a customer is ever defrauded, rather than assigning blame, we need to help the customer so that their trust in the system is not lost,” he added.

 

‘Conduct ethical hacking to ensure cybersecurity’: Tushar Vikram

As a foreign bank operating in India, Mashreq Bank India encounters unique cybersecurity challenges, noted managing director and chief executive officer Tushar Vikram. He shared that Mashreq conducts rigorous security tests, including multiple layers of ethical hacking, where systems are tested for vulnerabilities.

 

“We task security firms with attempting to breach our systems to ensure robust protection,” Vikram explained, adding, “Customer trust is key, and we need to stay updated.”

 

‘Fraudsters only need to get through once’: Pralay Mondal

CSB Bank’s managing director and chief executive officer, Pralay Mondal, discussed India’s rising profile as a target for cyber attacks due to its extensive digitisation. Mondal noted that globally, India’s low fraud rate was once attributed to a lack of "worthwhile investment" from fraudsters.

 

Today, with India’s rapid adoption of digital banking, the country has become a hotspot for cybercrime. Mondal described cybersecurity as a “cat and mouse game,” emphasising that fraudsters need only one successful attempt to breach security.

 

He also highlighted that fraud affects both financially inexperienced customers and banking and fintech experts alike.

 

“So we will continue to be a hub for digital attacks. It’s a cat and mouse game, but hopefully, we are ahead of the curve, as there has not been any incident that has severely impacted a financial institution,” Mondal said.

 

Constant efforts needed to educate customers

According to the Indian Computer Emergency Response Team (CERT-In), India reported 1.39 million cybersecurity incidents in 2022, a slight decrease from 1.4 million in 2021. These incidents span a range of cyber threats, including data breaches, malware, and ransomware attacks.

 

All banking leaders emphasised the importance of customer education in combating cyber threats. Kamakodi highlighted that while banks invest extensively in security resources, customers must remain vigilant to avoid disclosing their credentials. Prakash endorsed continuous public awareness initiatives like the RBI’s Kehta Hai campaign, which has positively influenced customer awareness. Mondal added that both customers and bank employees must stay informed about emerging fraud tactics to reduce vulnerability.

 

Catch all coverage of the Business Standard BFSI Summit 2024 here.