Indian banks have proposed integrating their systems with the National Cybercrime Reporting Portal (NCRP), a division of the ministry of home affairs, which could enable a quicker freeze on fraudulent accounts in the wake of a cyberattack.
This is intended to prevent those who commit cybercrimes and phishing attacks from swiftly transferring funds from a target's bank account to accounts with various banks before it is withdrawn or spent. This is a tactic employed by voice phishers and cyber shysters to make it more difficult for banks and law enforcement to recover the funds.
“Banks, in consultation with cybercrime experts, have recommended API integration with the NCRP to reduce the average response time and quick updation of cases. So, the idea is to mark a lien and freeze a bank account automatically without manual intervention,” noted a banker. “An industry sub-group has suggested this to I4C,” said the person.
I4C, or the Indian Cybercrime Coordination Centre, is an MHA programme that focuses on combating cybercrime and enhancing coordination between law enforcement agencies (LEAs) and institutions such as banks. NCRP is a vertical under I4C.
API, or 'application programming interface', enables two applications or systems to interact with one another without the need for human intervention. If there is an API between a system with specific data and another system that requires reporting, the two can communicate without the need for manual data entry. In the event of a cybercrime, such as a hacked internet banking account, API integration would allow for the quick transmission of fraud information to a central system or other banks.
“Typically, money from the account where the fraud happens is moved to accounts with several banks. There is a far better chance of retrieving the amount if the information is available with the entire industry instantaneously. The time spent by Bank A awaiting an instruction from a LEA, then sending emails to bank B, C and D, or calling them up, to request a lien on the accounts where funds have gone, can be saved,” noted another banker.
The group has also advised that data on accounts identified as lien and freeze be made available to banks on a regular basis so that they can reconcile their records.
In this respect, it has been observed that I4C may share a broad standard operating procedure directing banks to place bank accounts on hold, freeze or de-freeze them, and release funds to victims' bank accounts in cases reported to NCRP. Furthermore, it is believed that the nodal organisation should establish guidelines for communicating 'negative account or KYC details' so that accounts are not opened with the same demographics or KYC details as other banks.