A concerning trend has sent shockwaves across cybersecurity authorities, with central cyber and intelligence organisations tracking and documenting large-scale data leaks perpetrated by bank staff and third party contractors.
According to a senior Indian government official, the issue has been raised to the highest levels of government, prompting an emergency meeting at the Ministry of Home Affairs (MHA) a few weeks ago to develop a resolution. The government agencies have determined that unlimited access to critical banking data, granted to staff and third-party vendors, is directly supporting rampant cyber fraud and significant financial losses among citizens.
“The exposure of highly sensitive banking data to employees, particularly outsourced staff and third-party vendors, is leading to severe information leaks. Cybercriminals are exploiting this breach to systematically target and defraud citizens," a top government official stated.
What is more concerning is the potential involvement of high management-level bank executives. Intelligence agencies officials at the meeting stated that despite repeated accusations, both public and private sector institutions had failed to take action against fraudulent activity.
“Shockingly, banks are neglecting action on nearly 60-70 percent of fraudulent accounts reported on the National Cybercrime Reporting Portal (NCRP)," a senior official who attended the MHA meeting noted.
Financial intelligence agencies have also detected severe flaws in banking security. The MHA meeting featured a detailed analysis of cyber fraud trends, mule accounts, and bank reaction times. The statistics show a stunning increase in cybercrime events, demonstrating that current security measures are ineffective. Banks seem reluctant to take corrective action, creating serious concerns about their accountability.
In line with the most recent Reserve Bank of India (RBI) recommendation, authorities have highlighted the need for swift and strict action due to the rapid evolution of cybercrime. According to officials, unregulated data leaks from banks' own infrastructure will continue to fuel cybercriminal networks, putting millions of clients at risk, unless banks strengthen their internal controls and take decisive action.
