Cyber fraud: The government becomes strict on cyber fraud being done in the name of banks, and new guidelines will be made to stop fraud

Now the Central Government is going to take important steps to protect banks and customers from cyber fraud. The Finance Ministry will hold a meeting with chief executives of public sector banks next week to talk about cyber security issues. This meeting is being held given the fraud of Rs 820 crore that happened with UCO Bank of Kolkata earlier this month. Sources said that the Finance Ministry has already asked banks to review their digital systems and steps related to cyber security. The ministry will now hold a meeting with the MDs and CEOs of public sector banks to inquire about the situation.

Recently a fraud like this
In fact, during Diwali, UCO Bank was affected by an IMPS fraud, in which Rs 820 crore was deposited into the accounts of some account holders of UCO Bank, while no withdrawal was made from any other bank. UCO Bank was successful in withdrawing about Rs 679 crore or 79 percent of this, while the remaining amount was withdrawn by the account holders. The bank said that between November 10 and 13, certain transactions were initiated by account holders of other banks through the Immediate Payment Service, due to which money was credited to the accounts of UCO Bank account holders, while no money was received from those banks. Happened.

Taking precautionary measures, UCO Bank took the IMPS system offline. The bank also approached the Central Bureau of Investigation (CBI) to investigate any attempt to disrupt the functioning of the lender's IMPS service, including through a cyber-attack. Sources said such fraud had happened twice before with some other public sector banks, but it was not taken seriously as the amount was very small.

Recently, the Reserve Bank said that a common minimum framework of cyber security requirements should be developed to establish best practices and standards for financial institutions and to enable all institutions to take necessary steps to protect themselves from cyber risks. To get help in lifting.

Reserve Bank has given a warning
The Reserve Bank of India has mandated banks to adopt a widely accepted cyber security policy that outlines strategies to mitigate cyber risks and keep risks at an acceptable level, commensurate with the level of complexity of the business. The regulator has stressed that the cyber security policy needs to be separate from the broader IT policy. Reserve Bank Deputy Governor M Rajeshwar also raised the issue of cyber security of banks and said that banks should strengthen cyber security to prevent cyber fraud in the hyper-personalized and tech banking environment.

He also stressed that banks need to make efforts to provide timely resolution of customer complaints, which have not kept pace with the breadth of technology and products. The Reserve Bank had said that such disruption could make it difficult for customers and businesses to access their money or conduct normal financial activities and could lead to a loss of confidence in the banking system.

(PC: Freepik)