Cybersecurity 101: Complete Guides to Cyber Threats

1. What are the most common types of cyberattacks targeting banks and individuals?

As digital banking and online financial transactions continue to grow in India, cyber threats targeting banks and individuals have also become a bigger danger to worry about.

The Indian banking sector has witnessed a sharp rise in cyberattacks, with thousands of incidents reported annually, leading to significant financial losses and data compromises.

“Cybercriminals employ a wide range of evolving tactics, including identity fraud using multiple mechanisms, mule accounts, and phishing attacks. These threats often involve fake mobile applications, deceptive websites, and fraudulent call center number listings designed to manipulate and mislead unsuspecting customers. Additionally, email phishing campaigns have always remained a threat, tricking individuals into revealing sensitive information,” Ankush Tiwari, Founder and CEO, pi-labs, told Firstpost.

We take a look at the most common types of cyberattacks targeting banks and individuals in India:

Phishing attacks: Phishing is one of the most prevalent forms of cyberattacks in India, targeting both banks and individuals.

These attacks often involve deceptive emails or websites that trick users into revealing sensitive information such as login credentials or financial details.

Malware attacks: Malware, including viruses and trojans, is frequently used to compromise banking systems and individual devices. In 2023, there were 1,185 reported incidents of virus/malware attacks on Indian banks.

Ransomware attacks: Ransomware has become a significant threat, with 78 per cent of Indian organisations experiencing a ransomware attack in 2021. In 80 per cent of these cases, the attacks resulted in data encryption.

Notable examples include the WannaCry attack, which affected over 200,000 computer systems in India, including banks.

Data breaches: Large-scale data breaches have exposed sensitive information of millions of customers. For instance, the Zivame breach affected around 1.5 million customers, compromising personal data such as names, email addresses, and phone numbers.

Network scanning and probing: In 2023, there were 12,330 incidents of network scanning and probing reported in the Indian banking sector, making it the most common type of cybersecurity incident that year.

Financial fraud: Cyber frauds targeting individuals, such as stock trading scams, have become increasingly common. In the first nine months of 2024, stock market trading scams alone resulted in losses of Rs. 4,636 crore.

With inputs from agencies

2 How phishing scam trick’s people into giving away their financial information?

Phishing scams have become one of the most effective tools for cybercriminals, using deception and psychological manipulation to steal financial information from unsuspecting individuals.

These scams rely on tactics such as impersonation, urgency, and fraudulent communication to trick victims into revealing sensitive data like banking credentials, credit card details, and passwords.

Understanding how phishing works can help individuals stay vigilant and protect their financial assets.

Impersonation: Gaining victims’ trust

One of the most common phishing tactics is impersonation, where scammers pose as legitimate entities such as banks, financial institutions, or well-known companies. By mimicking official emails, websites, or even customer service representatives, fraudsters create a false sense of trust, making victims more likely to comply with their requests.

Urgency and fear

Phishing attacks often create a sense of panic to pressure victims into acting without thinking critically. Scammers may claim that an account has been compromised, a payment is overdue, or immediate action is required to avoid legal consequences. The urgency forces victims to make rushed decisions, leading them to disclose personal or financial information.

Fraudulent emails and messages

Many phishing attempts come in the form of emails or messages that appear legitimate. These communications often contain official logos, proper formatting, and professional language, making them look authentic. They may ask recipients to verify their accounts, reset passwords, or provide financial details under the pretense of security checks or service updates.

Malicious links, spoofed websites

A key component of phishing scams is the use of malicious links that direct victims to counterfeit websites designed to steal their data. These fake websites closely resemble legitimate banking or payment portals, tricking users into entering their login credentials. Once entered, the information is captured by attackers and used for fraudulent transactions or identity theft.

Vishing and smishing

Beyond emails, scammers also use phone calls and text messages to deceive victims. In vishing attacks, fraudsters impersonate bank officials, government agencies, or even family members, requesting sensitive information or immediate money transfers. Smishing scams, on the other hand, involve text messages that urge recipients to click on malicious links, provide account credentials, or install malware on their devices.

Fake security alerts and work-related scams

Another common phishing tactic involves sending fake security alerts, claiming that suspicious activity has been detected on an account. Victims are then asked to verify their identity, unknowingly handing over personal information. Similarly, in workplace scams, attackers impersonate executives or colleagues, requesting urgent wire transfers or confidential financial details, often targeting employees in finance departments.

AI-powered phishing techniques

With advancements in artificial intelligence, cybercriminals are now using AI-enabled chatbots and voice generators to create highly convincing phishing attempts. These sophisticated scams can generate personalised emails, replicate human-like conversations, and even mimic the voices of trusted individuals, making it harder for victims to identify fraudulent activity.

Why are phishing scams so effective?

Phishing scams exploit human emotions such as trust, fear, and curiosity. Many victims fall for these scams because they appear urgent, convincing, and seemingly come from trusted sources. With financial fraud on the rise, it is crucial to recognise these deceptive tactics and adopt proactive measures to stay protected.

How to protect yourself from phishing scams

• Enable two-factor authentication (2FA): Adding an extra layer of security can help prevent unauthorised access to your accounts.
• Verify messages from financial institutions: Contact your bank directly instead of clicking on suspicious links.
• Avoid sharing sensitive information: Never disclose OTPs, passwords, or financial details to unverified sources.
• Inspect URLs carefully: Before entering credentials, check if the website address is legitimate and secure (HTTPS).
• Monitor bank statements: Regularly review transactions to detect any unauthorised activity.
• Be cautious of unexpected requests: If an email or call seems suspicious, verify its authenticity before responding.

As phishing scams become increasingly sophisticated, awareness and vigilance are key to protecting financial information. By understanding how these scams operate and taking preventive measures, individuals can reduce their risk of falling victim to cyber fraud.

3 What security measures do banks typically take to protect customer data?

In an era of increasing cyber threats, banks employ a range of security measures to safeguard customer data and financial transactions. From robust login credentials to advanced encryption methods, financial institutions implement multiple layers of security to prevent fraud and unauthorised access.

Login credentials and password security

The first line of defence is the login process, which requires customers to enter unique credentials. Banks mandate strong passwords that include a mix of letters, numbers, and special characters. Many also set minimum password length requirements and restrict users from reusing their last few passwords.

Multi-factor authentication (MFA)

To enhance security, banks rely on multifactor authentication (MFA), requiring more than one form of identity verification before granting access. This often includes something the user knows, such as a password or PIN, and something the user has, such as an ATM card or a smartphone for one-time passwords (OTP). Some banks also use biometric authentication, including fingerprint or facial recognition, for added protection.

Encryption technology

Banks secure online transactions and sensitive information using encryption software, which converts data into unreadable code. Only authorised systems can decrypt and process this information, preventing unauthorised access.

Fraud prevention systems

Financial institutions monitor accounts in real time to detect unusual activity, such as large or suspicious transactions. Automated fraud detection programs analyse customer spending patterns and flag potential threats. If an anomaly is detected, banks may temporarily block transactions and notify the customer for verification.

Privacy policies and employee training

Strict privacy policies ensure that customer data is handled with care and in compliance with federal and state regulations. Employees undergo rigorous training to prevent data breaches and unauthorised access to confidential information.

Additional security measures

Beyond these core protections, banks implement other security protocols, including:

1. Intrusion detection systems and firewalls: These prevent unauthorised access to bank servers and databases.
2. ATM and online banking safeguards: Security measures include OTP verification, pre-enrollment authentication, and ATM signature verification.
3. Email confirmations and alerts: Customers receive notifications for transactions, password changes, and other account activity to help detect unauthorised access quickly.

By implementing these security measures, banks strive to protect customer data from cyber threats and financial fraud, reinforcing trust in digital banking services.

4. What is two-factor authentication (2FA), and why is it important for online banking?

Two-factor authentication (2FA) is a security system that requires users to provide two distinct forms of identification to access an account or system. In the context of online banking, 2FA adds an extra layer of protection beyond the traditional username and password combination.

The first factor in 2FA is typically something the user knows, such as a password or PIN. The second factor is usually something the user has, like a smartphone to receive a one-time passcode, or something the user use, such as a biometric characteristic like a fingerprint or facial recognition. This dual-layer approach significantly enhances security by making it much more difficult for unauthorised individuals to gain access to sensitive financial information.

The importance of 2FA in online banking cannot be overstated. As cyber threats continue to evolve and become more sophisticated, relying solely on passwords has become increasingly risky.

Passwords can be compromised through various means, including phishing attacks, social engineering, or brute-force attempts. By implementing 2FA, banks create an additional barrier that hackers must overcome, even if they manage to obtain a user's password.

2FA offers several key benefits for online banking security. It provides enhanced protection against unauthorised access, significantly reducing the risk of fraud and identity theft. It also helps mitigate the impact of phishing attacks, as attackers would need both the password and the second factor to gain entry.

This added security measure instills greater confidence in users, encouraging them to engage more freely with online banking services.

Moreover, 2FA helps banks comply with regulatory requirements set by authorities like the Reserve Bank of India, which mandates multi-factor authentication for certain types of transactions. This compliance is key for maintaining customer trust and ensuring the legal operation of digital banking services.

5. Is open banking vulnerable to cybersecurity risks?

Open banking is transforming the financial industry by enabling greater transparency, innovation, and convenience.

By allowing third-party providers access to banking data through secure application programming interfaces (APIs), open banking facilitates seamless financial services, from budgeting apps to faster loan approvals.

However, as with any digital-first system, this interconnected ecosystem also introduces new cybersecurity risks that banks, financial technology companies, and consumers must navigate.

Cybersecurity challenges in open banking

The fundamental concept of open banking relies on APIs to facilitate data sharing between banks and third-party service providers. While this enhances financial accessibility and competition, it also creates new attack vectors for cybercriminals. APIs, if not properly secured, can become entry points for unauthorised access, leading to potential data breaches and financial fraud.

“Open banking brings significant benefits to the financial ecosystem, but its digital-first nature also introduces new cybersecurity risks. Making APIs and data accessible to third parties increases vulnerabilities, including risks such as account takeovers, identity theft, and man-in-the-middle attacks. Additionally, ensuring third-party compliance and verification becomes more complex, especially with evolving data privacy regulations,” Ankush Tiwari, Founder and CEO of pi-labs, told Firstpost.

Key cybersecurity threats

Account takeovers and identity theft: Open banking relies on user authentication mechanisms to grant access to third-party providers. Weak authentication or phishing attacks can lead to account takeovers, where cybercriminals gain unauthorised control over user accounts, enabling fraudulent transactions or identity theft.

Man-in-the-middle (MitM) attacks: Open banking transactions involve the exchange of sensitive financial data between multiple parties. If communication channels are not sufficiently encrypted, hackers can intercept these transactions, manipulating or stealing critical information.

API security vulnerabilities: APIs serve as the backbone of open banking, but poor implementation or misconfigurations can expose them to attacks such as API injections, denial-of-service (DoS) attacks, or unauthorised data access. Cybercriminals can exploit weak authentication controls to gain access to customer data or banking systems.

Third-party compliance risks: Banks and financial institutions must ensure that all third-party providers accessing their systems comply with data security regulations. However, maintaining oversight over multiple fintech partners can be complex, increasing the risk of data mishandling or non-compliance with evolving privacy laws such as the Personal Data Protection Bill in India or GDPR in Europe.

6 Does the increasing use of AI by banks put me at a greater risk of cyber fraud?

“Using AI in banking introduces new threat vectors, making it crucial for users to stay vigilant against emerging AI-driven fraud. For instance, live deepfake calls have successfully deceived many individuals, posing a significant risk to identity verification. In fact, face and video authentication systems are vulnerable to deepfake attacks.

As banks deploy more AI, new attack vectors arise to steal user data from AI agents. We have seen hackers able to access private data by conducting cyber attacks on AI agents.

To maintain security in an AI-driven digital landscape, users and cybersecurity measures must continuously evolve,” Ankush Tiwari, Founder and CEO, pi-labs, told Firstpost.

7 What are deepfakes, and how can they be used in financial fraud?

With the rapid advancements in artificial intelligence (AI), deepfakes have become a topic of global discussion. Initially gaining popularity for their use in entertainment and creative industries, these hyper-realistic fake videos and audio recordings are now posing significant risks.

As deepfake technology becomes more accessible, concerns are rising over how it could be exploited for malicious purposes, especially in the financial sector.

But what are deepfakes? And can they boost financial fraud?

What are deepfakes?

The word "Deepfake" is a combination of "deep learning" and "fake". In common parlance, it refers to AI-generated media where a person's likeness or voice is convincingly replicated.

By analysing large datasets of images, videos, or audio samples, AI algorithms can replicate a person’s face, expressions, and voice with astonishing precision. These fabricated videos and audio clips are often so convincing that distinguishing them from authentic content is difficult without specialised tools.

While the technology has legitimate applications in movies, advertising, and education, it can  be weaponised by fraudsters to carry out sophisticated financial scams.

Use of deepfakes in financial fraud

Criminals can impersonate high-ranking executives, trick employees, and authorise unauthorised transactions.

The same technology can also be used to impersonate someone's close family member or friend. Imagine getting a distressed call from your spouse asking for quick money transfer to an account due to an emergency.

Deepfakes are also being used to manipulate stock prices by spreading false statements attributed to corporate leaders. This type of deception can lead to panic, affect investor decisions, and cause significant market fluctuations.

These are not one-off incidents. According to a report by Deloitte, Deepfake incidents in the fintech sector increased by 700 per cent in 2023.

Preventing deepfake financial fraud

Here are a few steps being taken to prevent deepfake frauds:

1. Several organisations are implementing multi-factor authentication for secure identity verification.
2. Staff members are being trained to recognise potential signs of deepfake fraud. Awareness programs stress the importance of verifying unusual requests through secondary channels.
3. Tools designed to detect deepfakes are being integrated into security systems, allowing firms to flag and investigate suspicious media content.
4. Governments and regulatory bodies are beginning to explore policies aimed at addressing the misuse of AI-generated media in the financial sector.

8 Does using public wi-fi put my bank accounts, e-wallets at cyberattack risks?

Using public Wi-Fi for financial transactions significantly increases the risk of cyberattacks on your bank accounts and e-wallets.

Here's why you should avoid using public Wi-Fi for such activities:

Security vulnerabilities

Public Wi-Fi networks are often unsecured or poorly protected, making them prime targets for cybercriminals. These networks lack robust encryption, allowing hackers to easily intercept data transmitted between your device and the internet.

Types of Attacks

Man-in-the-middle attacks: Hackers can position themselves between you and the network, intercepting sensitive information like login credentials and financial data.

Malicious hotspots: Cybercriminals create fake Wi-Fi networks that mimic legitimate ones, tricking users into connecting and exposing their data.

Packet sniffing: Attackers can use special software to capture data packets transmitted over the network, potentially accessing your entire web activity.

Risks to Financial Information

When using public Wi-Fi for banking or e-wallet transactions, you expose yourself to:

1. Data interception of login credentials and account numbers
2. Unauthorised access to your financial accounts
3. Identity theft and fraud
4. Malware installation on your device

Why Avoid Public Wi-Fi for Financial Transactions

1. Lack of encryption: Many public networks don't encrypt data, making it easy for hackers to access your information.
2. Vulnerability to attacks: Public Wi-Fi is a prime target for various cyberattacks, putting your sensitive data at risk.
3. Potential for financial loss: Cybercriminals can empty your accounts or run up your credit cards if they gain access to your financial information.
4. Long-term consequences: Recovering from identity theft or financial fraud can take months and cause significant stress.

To protect yourself, avoid using public Wi-Fi for any financial transactions. Instead, use secure, private networks or mobile data for sensitive activities. If you must use public Wi-Fi, employ a VPN to encrypt your connection and add an extra layer of security

9 Can scammers access my bank account, online transactions and e-wallet details from darknet?

Scammers can potentially access your bank account, online transactions, and e-wallet details through the darknet. Here's how:

Methods used by scammers

1. Stolen data purchases: Financial information, such as bank account details, credit card numbers, and e-wallet credentials, is frequently sold on darknet marketplaces. These details are often obtained through phishing, malware, skimming devices, or data breaches.
2. Identity theft: Criminals use stolen personal information to impersonate victims and gain access to their accounts. This includes using private email addresses linked to banking services for fraudulent activities.
3. Social engineering: Scammers may deceive victims into sharing sensitive information like OTPs or confirmation codes required for digital wallet transactions.
4. Hacking services: The dark web hosts forums and groups offering hacking services to compromise financial institutions and individual accounts.
5. Synthetic identities and pre-created accounts: Fraudsters purchase pre-created accounts or use synthetic identities to open new accounts or take over existing ones.

How to protect yourself?

The dark web poses significant risks, particularly in terms of data breaches, malware infections, and financial fraud.

When personal and financial data are breached, cybercriminals often sell this information on the dark web, leading to identity theft and fraud. Stolen details like credit card numbers and social security numbers can be used for illegal activities, resulting in significant financial and personal harm for victims.

Additionally, malware can be unknowingly installed from unsafe websites or infected downloads. Cybercriminals use it to track keystrokes, steal data, or access financial accounts, often without the victim's awareness.

To protect yourself from these threats, it is essential to enable two-factor authentication on all accounts, adding an extra layer of security against unauthorised access. Additionally, avoiding the sharing of sensitive information such as one-time passwords (OTPs) or card details with unverified sources can help prevent fraud. Regularly monitoring bank statements for any suspicious transactions is also crucial in detecting and responding to potential breaches quickly.

Using strong, unique passwords and refraining from saving payment details on unfamiliar or suspicious websites can further enhance security. Since the darknet serves as a hub for organised cybercriminal activities, maintaining vigilance and adopting robust cybersecurity practices are vital to safeguarding personal and financial information from potential threats.

10. Protect your wallet: The top 10 scams you need to be aware of

Scammers are growing cleverer, and it is critical to be updated about their strategies.

Here are some frequent methods scammers and fraudsters are attempting to steal money from people:

1. Phishing scams: Scammers send false emails or messages that appear to come from genuine organisations, such as banks or online stores, to fool victims into disclosing critical information.
2. Phone scams: Scammers phone victims, pretending to be from respected organisations and requesting personal or financial information.
3. Online romance scams: Scammers construct fake online accounts, establish connections, and then ask for money or gifts.
4. False internet retailers: Con artists set up fraudulent online shops that sell counterfeit or fraudulent items and accept payments without sending out the goods.
5. Investment scams: Scammers offer exceptionally large returns on investments, enticing victims to hand over their money.
6. Lottery and prize scams: Scammers call victims, stating they have won a significant quantity of money or a desirable prize, and want payment before releasing the funds.
7. Tech support scams: Scammers pose as tech support staff, requesting access to victims' computers or money for fraudulent services.
8. Charity scams: Scammers act as representatives of respectable charity and seek money that go directly to their pockets.
9. Ransomware scams: Scammers encrypt the victims' data and demand money in exchange for the decryption key.
10. Social media scams: Scammers exploit social media channels to propagate phoney news, phishing links, and malware to unsuspecting victims.

To avoid falling for these scams, be cautious with unsolicited messages or calls. Always verify the authenticity of emails, messages, and phone calls. Never share sensitive information or make payments without verifying the recipient's legitimacy.

Always maintain up-to-date software and operating systems. Use strong, unique passwords and enable two-factor authentication and regularly monitor your accounts and credit reports.

11. Secure your digital identity: 5 best practices for online financial transactions

To protect financial transactions on digital platforms, use strong passwords, activate two-factor authentication, encrypt your internet connection, use up-to-date apps, and exercise caution when downloading or following questionable links.

Here are five ways to secure financial transactions on digital platforms:

1. Make use of two-factor authentication and strong, one-of-a-kind passwords.
   Use strong, one-of-a-kind passwords for every online account. Turn on two-factor authentication (2FA) for your accounts to increase security. This will ensure that your accounts will be secure. Also, use password managers to create and safely store strong passwords.
2. Confirm website authenticity and encryption:
   Always ensure that the URL of the website begins with "https", and check the address bar for a lock icon. Look for trust badges that signify the site's security, such VeriSign or TRUSTe. Also, watch out for websites with poor design or misspelt URLs.

3. Keep devices and software up-to-date:
   Always update the operating systems, browsers, and security software on your devices on a regular basis. Install anti-virus and anti-malware software on your devices to guard against online dangers. Always use a trustworthy security suite to check for vulnerabilities in your devices.

4. Use tokens and secure payment methods
   Always use secure payment options like digital wallets like Apple Pay or Google Pay or credit cards. Make use of tokenisation services, which substitute distinct tokens for private card information. Do not conduct financial transactions on public Wi-Fi or computers.

5. Keep an eye on accounts and transactions on a regular basis
   Check your transaction history and account statements on a regular basis. Set up account alerts, which would inform you in case of suspicious behaviour in your account. In case of any irregularities or questionable transactions, notify your bank or financial institution right away. When carrying out transactions on digital platforms, adopt these recommended practices to greatly decrease the risk of financial fraud and secure your sensitive information.

12. Safe or sorry: The risks of keeping banking passwords on your phone

It's generally not recommended to store your banking passwords on your smartphone in plain text.

Here are some risks with keeping your banking passwords on your smartphone:

1. Unauthorised access: Your banking passwords might be readily obtained by someone else if your phone is misplaced, stolen, or accessed by someone else.
2. Malware and viruses: Hackers may be able to access your saved credentials if your phone is infected with malware or a virus.
3. Data breaches: Your information, including passwords, may be captured if your phone is linked to a public Wi-Fi network or a network that has been compromised.

Here are some safer alternatives:

1. Password managers: To safely store and encrypt your passwords, think about utilising a trustworthy password management tool, such as Dashlane, 1Password, or LastPass.
2. Biometric authentication: To protect your phone and banking applications, enable biometric authentication, such as fingerprint or face recognition.
3. Turn on two-factor authentication (2FA) for your banking applications to increase security by requiring a second form of verification, such as a fingerprint scan or a code sent to your phone.

13. Protect your pocket: 5 simple ways to prevent debit card fraud

When someone uses your debit card without your consent or knowledge, it's known as debit card fraud.  If your wallet is stolen or misplaced, your card may be compromised.  A cybercriminal may use your debit card to make transactions online or in-store, or they may take money out of an ATM after obtaining your card details.

Five strategies to prevent debit card fraud are as follows:

1. Consistently check your account
   Examine your transaction history and account statements on a regular basis to look for any unusual behaviour. To be informed when there are significant or uncommon transactions, set up account notifications.
2. Protect Your Card and PIN:
   Make sure your debit card is always kept in a secure place.
   Make a note of your PIN and keep it private at all times.
   Steer clear of utilising PINs that are simple to figure out, such your anniversary or date of birth.
3. Exercise caution when using card machines and ATMs.
   Use ATMs that are situated in safe, well-lit locations. Examine the ATM for any loose or additional accessories that would indicate manipulation.
   When entering your PIN, cover the keypad with your hand to keep it from being recorded by cameras or bystanders.
4. Safeguard your debit card details online
   Never provide your debit card details online unless you are positive that the website is trustworthy and safe. To be sure that a website is properly secured, look for "https" in the URL and a lock icon in the address bar.
   Steer clear of using public Wi-Fi networks or public computers to access your account or while making transactions.
5. Report lost or stolen cards right away
   Notify your bank right away if your debit card is lost, stolen, or hacked.
   To stop unauthorised or illegal transactions, cancel your debit card and get a replacement.
   Keep a watchful eye on your account for any strange activity and report it to your bank immediately.

By following these guidelines, you may considerably decrease the danger of debit card theft and safeguard your financial information.

14. Combat cybercrime with India's new National Cyber Crime Reporting Portal

The Indian government launched the National Cyber Crime Reporting Portal to make it easier for people to report cybercrime concerns online. With an emphasis on crimes against women and children, this portal enables individuals to report a variety of cybercrimes, including identity theft, internet fraud, hacking, and cyberbullying.

The portal gives victims an easy-to-use way to report cybercrimes safely and discreetly.

You can monitor the status of your complaint and report instances of financial fraud, including phishing, internet scams, and unauthorised transactions.

The site has several essential characteristics, including:

Reporting Cybercrimes: You can report a variety of cybercrimes, such as ransomware, hacking, cryptocurrency crimes, online financial frauds, mobile crimes, online and social media crimes, and online cyber trafficking.

Anonymous Reporting: You can report cybercrimes anonymously through the portal, particularly in sensitive cases like online child pornography or cyber harassment.

Tracking Complaints: You can follow the status of your complaint and get updates on the actions taken by authorities.

To report a cybercrime, visit the National Cyber Crime Reporting Portal (https://cybercrime.gov.in/) or call the National Helpline Number 1930.

15. Strong, unique passwords: Your first line of defence against financial fraud

Strap: As financial fraud has become a growing concern for individuals and businesses, experts warn that strong, unique passwords are the first and most crucial defence against cybercriminals targeting sensitive financial data.

Text: In an era of increasing cyber threats, financial fraud remains a significant concern for individuals and businesses alike. Cybersecurity experts emphasised that strong, unique passwords serve as the first and most crucial line of defence against malicious attacks targeting sensitive financial information.

According to recent data from the Reserve Bank of India (RBI), cases of online banking fraud have surged in the past year, with cybercriminals employing sophisticated techniques such as phishing, credential stuffing, and brute-force attacks. A weak password or one reused across multiple accounts makes users highly vulnerable to such breaches.

"Passwords act as the gatekeepers to our financial data. The stronger and more unique they are, the harder it becomes for hackers to gain unauthorised access," a senior RBI official said.

Experts recommend creating passwords that are at least 12–15 characters long, incorporating a mix of uppercase and lowercase letters, numbers, and special symbols. Additionally, using a password manager can help generate and store complex passwords securely.

Financial institutions have also urged customers to enable two-factor authentication (2FA) wherever possible, adding an extra layer of security beyond just passwords. The RBI has repeatedly emphasised the importance of digital hygiene, warning users against sharing login credentials or OTPs with anyone.

With cybercriminals evolving their tactics, staying ahead with robust password practices is essential. As online financial transactions become increasingly common, safeguarding personal data with strong passwords is not just advisable but imperative in the fight against financial fraud.

16. What are the best practices to protect my transactions from fraudsters?

Strap: As digital transactions become an integral part of daily life, financial fraud remains a growing concern. Cybercriminals are employing increasingly sophisticated techniques to exploit vulnerabilities, making it essential for individuals to take proactive steps to secure their financial assets.

Text: As digital transactions become an integral part of daily life, financial fraud remains a growing concern. Cybercriminals are employing increasingly sophisticated techniques to exploit vulnerabilities, making it essential for individuals to take proactive steps to secure their financial assets. Implementing a few best practices can help safeguard transactions and minimise risks.

Be aware of fraudulent schemes

Understanding common fraud tactics is the first step in protection. Phishing emails, phone scams, and identity theft are prevalent methods used by fraudsters to steal sensitive information. Being able to recognise suspicious activity can help prevent financial losses.

Use strong, unique passwords

Creating complex and unique passwords for financial accounts is crucial. Experts recommend using a mix of uppercase and lowercase letters, numbers, and special characters to enhance security. Reusing passwords across multiple accounts increases vulnerability to cyberattacks.

Enable multi-factor authentication (MFA)

Multi-Factor Authentication (MFA) adds an extra layer of security by requiring an additional verification step, such as a one-time password sent to a registered phone number. This significantly reduces the chances of unauthorised access to accounts.

Regularly monitor financial statements

Frequent review of bank and credit card statements helps detect unauthorised transactions early. Timely reporting of suspicious activity can prevent further financial damage and enable banks to take corrective measures.

Verify payment requests

Fraudsters often use deceptive tactics to trick individuals into transferring money. Verifying the authenticity of payment requests through direct communication with the recipient is essential before making any transactions.

Utilise fraud detection services

Many banks and financial institutions offer fraud detection services that monitor accounts for suspicious activities. Enrolling in these services provides real-time alerts and enhances financial security.

Keep software updated

Ensuring that computer systems, smartphones, and security applications are regularly updated helps protect against cyber threats. Software updates often include security patches that address vulnerabilities exploited by hackers.

Be cautious with personal information

Sharing sensitive information, such as bank details and National Insurance numbers, should be done with caution. Avoid disclosing such details over the phone or online unless it is with a trusted entity.

Use secure connections

Conducting financial transactions over secure, private networks reduces the risk of data interception by cybercriminals. Public Wi-Fi networks are highly vulnerable and should be avoided when accessing financial accounts.

Stay informed about emerging threats

Cyber threats continue to evolve, making it essential to stay informed about the latest fraud tactics and security measures. Regularly updating knowledge about cybersecurity helps individuals take preventive actions to protect their financial assets.

By implementing these best practices, individuals can significantly reduce their risk of falling victim to financial fraud. With a proactive approach to cybersecurity, protecting personal and financial data in the digital age becomes more effective and manageable.

17. What is the government doing to protect people from cyber frauds?

Strap: Government boosts cybersecurity efforts with new initiatives to combat rising financial fraud, ensuring stronger digital safety for citizens.

Text: In response to the alarming rise in cyber fraud cases, the Indian government has ramped up efforts to protect citizens from online scams and financial cybercrimes. Through a series of initiatives and technological advancements, authorities are ensuring stronger cybersecurity frameworks and efficient response mechanisms.

Indian Cyber Crime Coordination Centre (I4C)

Established in 2018 under the Ministry of Home Affairs, the Indian Cyber Crime Coordination Centre (I4C) serves as the nodal point for combating cybercrimes across the country. The I4C coordinates various cybercrime prevention and response activities, ensuring a more centralised and effective approach to tackling online threats.

National Cyber Crime Reporting Portal

In December 2023, the government launched the National Cyber Crime Reporting Portal, a user-friendly platform that enables victims to report cybercrimes online. This portal provides individuals with a seamless process to lodge complaints and track their progress, improving accessibility and transparency in addressing cyber fraud cases.

Citizen Financial Cyber Fraud Reporting and Management System

To combat financial fraud, the government introduced the Citizen Financial Cyber Fraud Reporting and Management System, which allows for immediate reporting of financial frauds. The system is backed by a toll-free helpline number, 1930, to help victims file complaints quickly and prevent fund siphoning by fraudsters.

Digital Intelligence Platform (DIP)

As part of its continued efforts, the government launched the Digital Intelligence Platform (DIP) to share information related to telecom misuse and disconnected numbers among stakeholders. This initiative aims to mitigate financial fraud and cybercrime by improving data exchange and collaboration.

'Report and Check Suspect' Feature

To empower citizens, the government has introduced a 'Report and Check Suspect' feature on the National Cyber Crime Reporting Portal. This tool allows individuals to search a database of known cybercriminal identifiers before engaging in financial transactions, thus reducing the risk of fraud.

Exclusive Domain Names for Financial Entities

The Reserve Bank of India (RBI) is taking steps to combat phishing and domain spoofing by introducing exclusive domain names for financial institutions. Banking entities will operate under 'bank.in', while non-banking financial institutions will use 'fin.in'. The Institute for Development and Research in Banking Technology (IDRBT) will act as the exclusive registrar, with registrations set to commence in April 2025.

DigiKavach Initiative

In collaboration with Google, the government has launched DigiKavach, an online fraud identification program aimed at protecting users from financial cyber frauds. The initiative operates alongside the I4C and the Cyber Crime Helpline (1930) to provide rapid identification and response to emerging cyber threats.

Indian Computer Emergency Response Team (CERT-In)

The Indian Computer Emergency Response Team (CERT-In), under the Ministry of Electronics and Information Technology, plays a crucial role in handling cybersecurity incidents. CERT-In provides technical support to individuals and organizations, assisting them in recovering from cyberattacks and enhancing India’s overall cybersecurity infrastructure.

With cyber threats evolving rapidly, these measures collectively aim to strengthen cybersecurity, raise public awareness, and establish robust mechanisms for reporting and addressing cyber fraud in India. The government continues to urge citizens to remain vigilant, report suspicious activities, and adopt digital safety practices to safeguard their financial assets in the digital age.

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