Spend on cybersecurity or pay for failures, banks said | Hyderabad News

Hyderabad: In a meeting convened by the Reserve Bank of India (RBI) with representatives of 51 city co-operative banks, NABARD, the city’s police commissioner, CV Anand, explained hacker threats to banks with systems vulnerable cybersecurity.
Attendees were briefed on the recent AP Mahesh Cooperative Urban Bank hacking case and advised to strengthen their cybersecurity apparatus.
The hackers had penetrated the network of AP Mahesh Cooperative Urban Bank on January 24 and siphoned off Rs 12.48 crore. Subsequently, the police requested the RBI to convene the meeting with the representatives of the 51 city cooperative banks operating in Telangana.
During the lecture, Anand explained in detail the hacking operation against AP Mahesh Cooperative Urbank Bank. Even after probing for two months, the main hackers have yet to be identified. Police have so far arrested 23 people, including four Nigerians, in the case.
Highlighting the security flaws found during the investigation, Anand said the bank showed a lack of focus and willingness to spend a sufficient amount on cybersecurity measures including firewalls, systems prevention and detection systems, anti-phishing systems and networks of separate systems. He said the failure of the bank was a crime because they are dealing with public money and it is their duty to protect it while offering online banking services. Criminal liability will rest with that bank, he said. “A bank that made a profit of Rs 33 crore, spent less than Rs 10 lakh on cybersecurity,” Anand said.
Chief Managing Director, RBI, Mumbai HQ, Rajan, and Regional Director of RBI, Telangana, Nikhila said that although there are some constraints, they are improving banking cybersecurity across the country.


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