Alert! A massive ransomware attack on a technology service provider has disrupted banking services for nearly 300 small banks across India. The incident has caused significant inconvenience to millions of customers reliant on these financial institutions.
According to Reuters report, affected service provider, C-Edge Technologies, which provides banking technology systems to numerous small banks, was targeted by cybercriminals who encrypted its systems causing major inconvenience to these small local banks.
The National Payment Corporation of India (NPCI), as a precautionary measure, has temporarily isolated C-Edge from its payment system, preventing affected banks from accessing crucial financial services. To contain the damage, the NPCI is carrying out a thorough investigation to block the ransomware from infecting additional banks.
A series of alerts issued by the RBI and Indian cyber agencies in the past few weeks have put the banking sector on edge about potential cyber threats.
The Reserve Bank of India (RBI) published its Report on Currency and Finance (RCF) for 2023-24 recently, highlighting the challenges posed by technological advancements in the financial sector. The report acknowledges that while digital technologies have enhanced the efficiency and competitiveness of banks in India, they also introduce significant risks. Key concerns include rising cybersecurity threats and data privacy issues. The average cost of data breaches in India has surged to $2.18 million in 2023, marking a 28% increase since 2020. The latest attack underscores the urgent need for enhanced cybersecurity measures within the banking sector.
