IMF's April 2024 Global Financial Stability Report, cyberattacks have resulted in extreme financial losses, which have increased fourfold since 2017, amounting to USD 2.5 billion.
�Mumbai:�With technological advancements, the Indian financial sector is witnessing a digital transformation that has enhanced efficiency and accessibility and increased exposure to diverse cyber threats, said the Economic Survey 2025 on Friday. "These threats, ranging from phishing and ransomware to Distributed Denial of Service (DDoS) attacks, SMSing, and fake/malicious mobile applications, pose serious challenges to the financial system's stability," said the Survey. As per the information reported to and tracked by the Indian Computer Emergency Response Team (CERT-In), the number of observed and handled cybersecurity incidents stood at 11.6 lakh, 14 lakh and 13.9 lakh during 2020, 2021 and 2022, respectively.
The financial sector remains susceptible to cyber threats because it manages sensitive data and conducts critical transactions. Criminals often target financial institutions to either gain unauthorised access to assets or disrupt financial activities, jeopardising economic stability.
Reports indicate that almost one-fifth of all reported cyber incidents involve financial institutions, with banks being the most affected. According to IMF's April 2024 Global Financial Stability Report, cyberattacks have resulted in extreme financial losses, which have increased fourfold since 2017, amounting to USD 2.5 billion. Beyond these direct losses, indirect costs such as reputational damage and expenditures on enhanced security have also significantly risen, said the Survey.
