With reference to “Tackling cyber threats” (October 24), the rising threats to electronic banking and financial transactions point to the fact that financial institutions, particularly banks, in India are highly vulnerable to hackers. While implementing digitalisation of banking operations, it seems the institutions have forgotten about the coexistence of the relative risks and threats that eventually led to the present situation. The evaluation of the functioning of existing systems in financial institutions could not plug the vulnerabilities, thereby putting customers at risks. As a remedy some of the banks have blocked the use of credit and debit cards, which is not only improper but has spelt trouble for customers.
The information technology departments in financial institutions must have trained personnel who are well-versed in banking operations and possess skills to develop foolproof systems and procedures to mitigate systemic risks and failures. Security audits and inspection of software and hardware need further strengthening, while periodical training of staffers would ensure skill development. Notwithstanding the list of dos and don’ts issued by banks to customers, many are negligent in following these. At a time when the central government is aggressively pushing financial inclusion and digitalisation, an assessment of the likely risks and threats in electronic transactions is critical to ensure secure banking transactions.
VSK Pillai, Changanacherry
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