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RBI Flags Rising Cyber Threats to Financial Systems
30 Oct
Summary
- Central bank alerted banks to escalating AI-driven cyberattacks.
- Focus on strengthening security of API links to non-bank entities.
- Recent incidents include data leaks and millions lost in fraud.
The Reserve Bank of India (RBI) has alerted banks to a surge in cyberattacks targeting financial infrastructure, emphasizing the need for enhanced preparedness against AI-driven threats. Discussions have focused on identifying and rectifying weaknesses within application programming interfaces (APIs), which connect banks to fintechs and non-bank lenders, often considered 'softer targets' by hackers. The RBI's heightened vigilance stems from lagging implementation of existing cybersecurity rules and recent high-profile incidents.
In recent weeks, India has experienced a notable increase in cyber events. State Bank of India reported a data leak affecting 3,900 customers, and two Mumbai-based non-bank lenders lost approximately $2 million through over 700 unauthorized instant transfers. These incidents underscore the vulnerability of API links used for financial transactions, prompting agencies like India's cyber agency CERT-In to issue advisories and conduct cybersecurity training for financial institution officials.
