Indian Financial Sector Faces Rising and Diverse Cyber Threats Amid Digital Transformation
According to the Economic Survey 2024-25, banks were the most impacted by cybersecurity incidents, with nearly 20% of all reported cases involving financial institutions. It also highlighted that the Indian financial sector, amid ongoing digital transformation, faces growing and varied cyber threats.
It stated that the digital revolution had simultaneously brought new challenges and threats, such as the illegal use of cyberspace for criminal purposes.
“These threats, ranging from phishing and ransomware to Distributed Denial of Service (DDoS) attacks, SMSing, and fake/malicious mobile applications, pose serious challenges to the financial system’s stability,” the report said.
According to the Survey, the Indian Computer Emergency Response Team (CERT-In) recorded 11.6 lakh, 14 lakh, and 13.9 lakh cybersecurity incidents in 2020, 2021, and 2022, respectively.
“The financial sector remains susceptible to cyber threats because it manages sensitive data and conducts critical transactions. Criminals often target financial institutions to either gain unauthorised access to assets or disrupt financial activities, jeopardising economic stability. Reports indicate that almost one-fifth of all reported cyber incidents involve financial institutions, with banks being the most affected,” the report said.
According to the International Monetary Fund’s April 2024 Global Financial Stability Report, cyberattacks have led to significant financial losses, now totaling $2.5 billion, a fourfold increase since 2017. In addition to these direct losses, the report noted a sharp rise in indirect costs like reputational harm and increased security-related expenditures.
With a remarkable score of 98.49 out of 100, India has earned a Tier 1 ranking in the Global Cybersecurity Index (GCI) 2024, highlighting a significant milestone in its cybersecurity progress. “This recognition places India among the world’s ‘role-model’ nations in cybersecurity,” the report said. The GCI evaluates countries based on five pillars: legal, technical, organisational, capacity building, and cooperation.
“India’s strong performance in cybersecurity is driven by a range of initiatives and measures implemented by the government to enhance cyber resilience and establish robust frameworks for cybercrime laws and cybersecurity standards. The country’s legal institutions are well-equipped to tackle cybersecurity challenges and combat cybercrime, ensuring the protection of its digital infrastructure,” the report further stated.
