Cybersecurity: A Crucial Cog in Rebuilding the BFSI Sector in India

As technology continues to advance, it not only simplifies services but also somewhere makes it more vulnerable to cyber-attacks or cyber-crime. Cyber-attack involves stealing, destroying, or altering data, and can take different forms such as password hacking, phishing, and spear-phishing attacks, drive-by attacks, and several others of this kind.

The BFSI sector deals with an enormous sum of money held in the form of accounts and policy plans. The information and details related to such statements and policies are confidential and are thus guarded by both the company and the holder himself. This information is what gives access to carrying out various online transactions. However, if a third party, such as a hacker gets illegal access to such sensitive information and uses the same for fraudulent purposes, then it can lead to considerable losses to the respective company or customer or both. Moreover, with the advent and widespread usage of IoT (Internet of Things), where there is even greater sharing of data and information, the risk of cybercrime increases exponentially.

Reserve Bank of India shared in one of its latest reports that there were about 50,000 cyber frauds in FY 2018-19*. This throws light on the growing menace of cyberattacks and how security towards resolving or dealing with such issues is the need of the hour.

Since banking, insurance, and other financial services form the core of the economy, it is imperative that cybersecurity is given serious attention. In the absence of strict cybersecurity systems as well as provisions and law in place, cyberattacks will continue to rob off and destroy reputed institutions as well as innocent accounts and policyholders in the future too. This will seriously impair customers' trust and confidence while also affecting the institutions severely. In the long run, this will also result in a fall in the GDP of the country as these sectors are known to contribute significantly to the same.

Also, as India leaps forward in infrastructural and technology development, it is essential that along with developing software systems and techniques to offer advanced services, due attention is given to reducing cyber threats. The benefit of cybersecurity will penetrate down and have a positive effect on the confidence levels of both the institutions and the masses.

There are several ways in which cybersecurity can be improved-

If we are to build a robust and secure BFSI core in the country, then cybersecurity must be strengthened to the maximum. To enjoy the advantages of cybersecurity, one way can also be to galvanize today’s tech-smart generation to find out how to become experts in cybersecurity experts and encourage them to take up such a career path. When we have more people taking up cybersecurity jobs, we will have a more significant force to defend the increasing number of hackers.

Axis Max Life Insurance is one such insurance company that has fully embraced digital technologies and uses AI, data analytics, and other such techniques across its value chain, for easy detection and prevention of fraud.

In your capacity, as a customer or policyholder, you must also practice utmost care in conducting online transactions to stay safe of such cybercrimes.