In this ever-growing digital world, security always remains an area of concern. Cybersecurity is a one such area which needs to continuously grow, change and adapt to the most recent threats. According to industry estimates the number of cyberattacks on Indian websites increased sharply by 90% during the second quarter of 2023 compared to the first quarter, which saw about 500 million attacks. “To combat these emerging threats, a multifaceted approach is essential. Firstly, investing in advanced security technologies is crucial. AI-driven threat detection systems can help identify and respond to threats in real-time, reducing the time to detect and contain breaches,” Karmesh Gupta, CEO and co-founder, WiJungle, told FE-TransformX, adding that organisations need to establish an incident response plan to mitigate the financial impact of a breach.
Collaborating with cybersecurity experts through threat intelligence sharing and participation in bug bounty programs can further bolster defence strategies. Interestingly, about 47% of Indian companies do not undertake regular cyber audits or training to build preparedness or test their resilience to a cyber breach incident or ransomware attack. This is a high proportion for one of the highest risks facing corporations and a cause for concern. However, 80% of experts stated that there have been zero cyber incidents, giving the impression that existing cyber-preparedness is adequate and best-in-class, as per insights from FTI Consulting India’s India Disclosure Index 2023 report. However, according to a survey by global IT security professionals in November 2022, malware was the most concerning cyber threat targeting organisations, with a relative value of 3.96 on a five-point scale, as per insights from Statista.
Industry experts believe with evolved digital threats such as data breaches and credential hacking to synthetic identities, the evolving fraud threats are attacking a person’s financial and personal data. To stand against these digital threats, brands need to elevate and revamp their fraud risk management strategies. With advanced frauds emerging, Artificial Intelligence (AI), Machine Learning (ML) and Endpoint Detection and Response (EDR) systems, among others, might play a crucial role in changing the way of fraud protection. “AI and ML can be instrumental in threat detection and response. AI-driven systems can analyse vast datasets in real-time, identifying patterns indicative of potential threats. ML algorithms, on the other hand, continuously learn from new data, enhancing their accuracy over time. Along with this, EDR solutions have the ability to provide users with real-time monitoring and analysis of endpoint activities, enabling rapid threat identification and containment,” Trishneet Arora, CEO, founder, TAC security, explained.
As technological advancements revolutionise the way every service is delivered, it also presents a novel opportunity for fraudsters to exploit vulnerabilities. To combat these evolving threats, the BFSI industry is witnessing the emergence of innovative trends in fraud risk management. “ In the realm of financial institutions, where trust and security are paramount, the landscape of fraud risk management is transforming. From anomaly detection to behavioural analytics, AI and ML among others, revolutionise the way fraud is identified and mitigated, reducing false positives and ensuring a more secure environment for both institutions and their customers,” Dhiren .V. Dedhia, head, enterprise solutions, CrossFraud, said.
Industry experts believe that AI and ML technologies have emerged as groundbreaking tools in fraud risk management. Recently, on October 13, 2023, the government released The National Strategy for Robotics, which is being considered as an important foundational step as part of the government of India’s overall AI strategy to keep pace with technological development, mitigating risks and devising a strategic plan to actualise the potential of this technology. It can be considered an imperative step for the development and diffusion of robotics and intelligent cyber-physical systems in India. “Apart from the technological advancements, brands have to be aware of the social engineering techniques used by fraudsters and take initiatives to spread awareness about it among stakeholders and users. With the right technology and the right information, brands can stand against emerging fraud trends and protect their brand integrity from its impact,” Dhiraj Gupta, co-founder and CTO, mFilterIt, concluded.
