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Bank Employees' Access To Critical Data Fueling Massive Cyber Frauds, Find Central Agencies
Intelligence agencies officials in a meeting with the Home Ministry said that it has been observed that both public and private sector banks are failing to act against fraudulent activities, despite repeated complaints.
A disturbing trend has sent shockwaves through cybersecurity agencies, with central cyber and intelligence agencies tracking and documenting large-scale data leaks facilitated by bank employees and third party vendors.
According to a top level government official, the issue has been escalated to the highest levels of government, prompting an urgent meeting at the Ministry of Home Affairs (MHA) held few weeks ago to devise a solution. The central agencies have identified that unrestricted access to critical banking data — granted to employees and third-party vendors — is directly fuelling rampant cyber frauds and massive financial losses for 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 said citing a goverment report.
What is more alarming is the suspected complicity of senior management level banks officials. Intelligence agencies Officials in the meeting said that it has been observed that both public and private sector banks are failing to act against fraudulent activities, despite repeated complaints. “Shockingly, banks are neglecting action on nearly 60-70 per cent of fraudulent accounts reported on the National Cybercrime Reporting Portal (NCRP)," a senior official who attended the MHA meeting stated.
Financial intelligence agencies have also flagged serious lapses in banking security. “A comprehensive analysis of cyber fraud trends, mule accounts, and banks’ response times was presented at the meeting. The findings indicate a staggering increase in cybercrime incidents, proving that existing security measures are failing. Banks appear reluctant to take corrective action, raising serious concerns about their accountability," sources told.
With cybercrime evolving rapidly, authorities have emphasised the need for immediate and stringent action, aligning with the latest Reserve Bank of India (RBI) advisory. Officials said that unless banks tighten their internal controls and take decisive steps, the unchecked data leaks from within their own infrastructure will continue to fuel cybercriminal networks, endangering millions of customers.
Source:https://www-news18-com.cdn.ampproje...-find-central-agencies-exclusive-9235255.html
I used to suspect the role of senior management & middle management in Cyber fraud & Counterfeit currency circulation.
One incident that happened in our family's wedding occassion in 2006 is that my father's elder brother & his wife were considered the elders of our joint family of 22 people and during the wedding my uncle went to withdraw 25 lacs from the bank & ATM where 8 lacs turned out to be Counterfeit currency. When he again went to the same banks branch to return it, he was accused of circulating that currency through dubious means and it's not through that bank branch which the fake money came out to be. Even the police did not believe us. So we went & complained to the local MP whose phone calls to the banks top management led to the recovery of 8 lacs within a week's time. BTW it is a PSU Bank from my native place, Nellore. This was in 2006 during my cousin's wedding function. Now we are in 2025 talking about Cyber fraud without thinking about the involvement of any banks officials. Now tell me who's to blame?
Intelligence agencies officials in a meeting with the Home Ministry said that it has been observed that both public and private sector banks are failing to act against fraudulent activities, despite repeated complaints.
A disturbing trend has sent shockwaves through cybersecurity agencies, with central cyber and intelligence agencies tracking and documenting large-scale data leaks facilitated by bank employees and third party vendors.
According to a top level government official, the issue has been escalated to the highest levels of government, prompting an urgent meeting at the Ministry of Home Affairs (MHA) held few weeks ago to devise a solution. The central agencies have identified that unrestricted access to critical banking data — granted to employees and third-party vendors — is directly fuelling rampant cyber frauds and massive financial losses for 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 said citing a goverment report.
What is more alarming is the suspected complicity of senior management level banks officials. Intelligence agencies Officials in the meeting said that it has been observed that both public and private sector banks are failing to act against fraudulent activities, despite repeated complaints. “Shockingly, banks are neglecting action on nearly 60-70 per cent of fraudulent accounts reported on the National Cybercrime Reporting Portal (NCRP)," a senior official who attended the MHA meeting stated.
Financial intelligence agencies have also flagged serious lapses in banking security. “A comprehensive analysis of cyber fraud trends, mule accounts, and banks’ response times was presented at the meeting. The findings indicate a staggering increase in cybercrime incidents, proving that existing security measures are failing. Banks appear reluctant to take corrective action, raising serious concerns about their accountability," sources told.
With cybercrime evolving rapidly, authorities have emphasised the need for immediate and stringent action, aligning with the latest Reserve Bank of India (RBI) advisory. Officials said that unless banks tighten their internal controls and take decisive steps, the unchecked data leaks from within their own infrastructure will continue to fuel cybercriminal networks, endangering millions of customers.
Source:https://www-news18-com.cdn.ampproje...-find-central-agencies-exclusive-9235255.html
I used to suspect the role of senior management & middle management in Cyber fraud & Counterfeit currency circulation.
One incident that happened in our family's wedding occassion in 2006 is that my father's elder brother & his wife were considered the elders of our joint family of 22 people and during the wedding my uncle went to withdraw 25 lacs from the bank & ATM where 8 lacs turned out to be Counterfeit currency. When he again went to the same banks branch to return it, he was accused of circulating that currency through dubious means and it's not through that bank branch which the fake money came out to be. Even the police did not believe us. So we went & complained to the local MP whose phone calls to the banks top management led to the recovery of 8 lacs within a week's time. BTW it is a PSU Bank from my native place, Nellore. This was in 2006 during my cousin's wedding function. Now we are in 2025 talking about Cyber fraud without thinking about the involvement of any banks officials. Now tell me who's to blame?
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