What ails financial institutions when it comes to tackling data security?

Financial institutions are increasingly vulnerable to data security risks due to their dependency on external service providers, limited cybersecurity budgets, and poor implementation standards

Financial institutions across the country are increasingly grappling with the perpetual risk of data leaks and security breaches.

Take for instance the recent data breach at Star Health and Allied Insurance serves as a reminder of this vulnerability. Sensitive data belonging to 31 million customers, amounting to an estimated 7.24 terabytes, was reportedly put up for sale on the messaging platform Telegram.

The threat, however, extends far beyond traditional financial institutions, raising concerns about the security of customer data across a wide range of industries.

The Reserve Bank of India (RBI) report on ‘Currency and Finance 2023-24’ cautioned against risks