Cyberattacks could potentially cripple national stability: Amitabh Kant

As India transitions to smart meters and more digital grid, increasing cyberattacks pose potentially crippling consequences for national stability and everyday life, G20 Sherpa Amitabh Kant said on Tuesday.

In 2024, the banking, financial services and insurance sectors witnessed a huge surge in the sophistication and diversity of cyberattacks and the average cost of data breaches reached almost USD 2.8 million in India, Kant said, adding that last year, Indian businesses faced over 3,000 cyber attacks per week.

India has experienced a very sharp surge in state-sponsored cyberattacks, with such incidents rising by almost 300 per cent between 2021 and 2024, he said, while unveiling a study prepared by cybersecurity solutions company Lisianthus Tech in the national capital.

As India transitions to smart meters and a more digital power grid, the risk of cyberattacks grows and expands, posing potentially crippling consequences for national stability and everyday life, Kant, who is also the former Niti Aayog CEO, said.

"In recent years, we've seen attacks on power utilities, healthcare databases and even satellite communication systems," he said.

There is a need for coordination among various sectors like defence, private industry and civil society to tackle the menace of cyberattacks as India transitions to clean energy, Kant said.

In this context, cyber warfare is not just a technical challenge it is a strategic one. It demands coordination between defence, intelligence, diplomacy, industry, private sector and civil society. The entire nation's state apparatus must be aligned.

According to the report, hackers from various countries, including China and Russia are deploying a wide range of malware to target individuals and businesses in India to compromise their financial data.

They are using methods like ransomware -- which encrypts data and demands ransom for decryption keys and banking trojans that target financial systems -- to steal banking credentials and perform fraudulent transactions, the report titled Evaluating the Vulnerability of India's Financial System said.

Other tools hackers use to steal financial details are cryptojacking malware, remote access trojans, wipers, and fileless malware.

Lisianthus Tech founder and CEO Khushhal Kaushik said, "While the country's financial system is dynamic and diverse, it remains under the constant threat of cyberattacks, fraud, and data breaches. As we aim to lead in global innovation, it is crucial that the digital infrastructure, supporting our financial services, is secure, resilient, and capable of adapting to new threats".

Compared to other nations, India's financial sector is still relatively new in its digital journey. Developed countries like the US, the European Union, and Singapore have set up comprehensive cybersecurity frameworks and regulations that can serve as models.