Banks leaving no stone unturned to stay ahead of fraudsters, say CEOs

Focus is on staying ahead on the technological front

Cybersecurity is a serious concern for banks, and they are putting in major effort and investments to stay ahead of fraudsters, according to chief executive officers (CEOs) of leading banks.

 

Speaking at the Business Standard BFSI Insight Summit, top executives said that while the challenges continue to grow, banks are leaving no stone unturned to safeguard investor interests.

 

“As the landscape of digitisation and digital services evolves, cybersecurity is becoming increasingly important. Banks have learned lessons the hard way. Many incidents of cybersecurity attacks on banks have come to light, resulting not only in financial losses but also in reputational damage. Cybersecurity is no longer just a compliance issue. It has become an existential challenge for banks, which is why the budgeted investments towards cybersecurity have been separated from the overall information technology investment," said Baldev Prakash, managing director (MD) and CEO of J&K Bank. 

 

“At Mashreq, we are a highly technology-driven bank. We’ve probably received the most awards for being the most advanced bank from a technology perspective in West Asia. As a result of technological advancements, the number of cyberattacks has increased. In India, banks are generally dealing with over 1.2 billion cyberattacks every week,” said Tushar Vikram, country head and CEO of Mashreq Bank India.

 

N Kamakodi, MD and CEO of City Union Bank, said that efforts are also being made by the regulator and industry bodies to keep the banking system safe. “Everyone is trying to stay ahead of the attackers. It’s not just about investments and efforts — you also need a bit of divine intervention to handle it,” he said, highlighting the need for greater awareness among investors to help avoid incidents of cyberfraud.

 

Pralay Mondal, MD and CEO of CSB Bank, agreed that banks must put in continuous efforts to stay ahead of the curve.

 

“Digitisation in India has accelerated rapidly in recent years,” said Mondal, citing the scale of Unified Payments Interface transactions. “As a result, India has become a major hub for cyberattacks. We are constantly taking every possible protective measure. The good news is that, so far, we are ahead of the curve. The credit goes to the team working behind the scenes. There’s a lot of investment being made, and collaborations are happening between banks. With the level of technology coming in, cyber issues are bound to increase.”

 

They added that banks are putting considerable effort into consumer awareness and technological advancements.

 

“A lot of customer education is required. We, on our side, conduct a customer awareness programme every Sunday morning. It’s particularly focused on cybersecurity and is broadcast on the radio. It’s becoming very popular. This is one step forward. I believe the ‘RBI Kehta Hai’ campaign has made an impact on customer awareness. The regulators, government, and banks must continue this effort on a larger scale," said Prakash.