Online Security Emerging as a Major Concern for Indian Banks

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Online Security Emerging as a Major Concern for Indian Banks

Written by Administrator

Wednesday, 21 May 2008 07:10

As per an online survey conducted by Singapore headquartered software product company, ReadiMinds, it has been found that around 30% of leading Indian banks fell prey to identity theft in 2007.

The survey also discovered that in 2008 an online security has been the major concern for the Indian Banks. The study was named as State of online security in financial institutions in India 2008, and was conducted in April 2008. Further, it took into consideration India's leading 40 banks.

CEO of ReadiMinds, Naren Nagpal, said that an online security is an important issue for Indian banks, and they are increasingly attempting to improve it. But he added that the condition of online security at the Indian Banks is far below than the overseas banks, as reported by ZDNetAsia on May 8, 2008.

The survey also disclosed that in 2007 almost 10% Indian banks were attacked by MITM (man-in-the-middle) attacks. This is proving to be a rapidly growing problem in which a harmful attacker intercepts the transaction between Web-banking server and the user. The attacker changes and compromises the e-communication link between the user and the server of Web-banking in order to gain financial profits.

The survey also found a strong bond existing between the performance of a financial organization and the security plans it executed. Also, 70% of banks, which had executed implemented the security rules, have performed more effectively as compared to others that does not have strong security rules.

Unfortunately, still more than 57% of the Indian banks do not have a proper budget for an online security; instead they cover an online security as a part of their overall IT budget. Likewise, only 57% of the Indian Banks had an efficient plan for generating customer awareness against online cyber crimes.

No doubt, online banking is an easy alternative against the tedious long queues, but it is not at all a safe option. Last year, Indians spent almost Rs 70 Billion ($US 1.68 Billion) in shopping online but not all of it passed into authentic source. Customers accessing the internet banking facilities of leading Indian private banks are being hacked by strong cyber criminal groups who steal their banking passwords, money from their accounts.