NEW DELHI: Smaller non-banking financial companies (NBFCs) have reportedly lost nearly ₹300 crore to cyberattacks over a two-month period, with around 150 complaints filed in connection with the incidents. The reported losses have raised concerns among officials about the growing cyber risks facing smaller financial institutions and the potential use of artificial intelligence (AI) to scale up fraud operations.
The incidents highlight the vulnerability of financial firms that handle sensitive customer and transaction data but may not have the same cybersecurity resources as larger banks.
Nearly ₹300 Crore Lost in Two Months
The reported cyberattacks have resulted in substantial financial losses for smaller NBFCs, according to the available account of the incidents. Around 150 complaints have reportedly been filed, pointing to a series of cases rather than an isolated breach.
The precise breakdown of the losses, the number of affected institutions and the methods used in individual attacks were not specified in the information available.
NBFCs play an important role in India’s financial system by providing loans and other financial services. A successful cyberattack can expose customer information, disrupt operations and potentially enable unauthorised transactions or other forms of financial fraud.
Officials Warn of AI-Enabled, Jamtara-Style Fraud
Officials have also flagged the possibility that AI tools could make fraud operations more sophisticated and easier to scale. The warning evokes the organised social-engineering scams associated with Jamtara, Jharkhand, where fraudsters have been linked to phone-based and digital financial fraud.
AI tools can potentially help criminals produce convincing messages, impersonate trusted individuals, personalise phishing attempts and automate interactions with potential victims. These capabilities could make fraudulent communications harder to distinguish from legitimate requests.
However, the reported NBFC losses do not, by themselves, establish that AI was used in the attacks. The concern is that criminals could increasingly combine established fraud techniques with newer technologies to reach more victims and make scams more convincing.
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Why Smaller Financial Institutions Face Cyber Risks
Smaller financial institutions may face challenges in maintaining round-the-clock security monitoring, deploying advanced fraud-detection systems and responding quickly to sophisticated attacks. Weak access controls, compromised employee credentials, inadequate monitoring or unpatched systems can create opportunities for cybercriminals.
The specific vulnerabilities involved in the reported cases have not been established in the available information. Determining the causes would require incident-level investigation and technical evidence.
For NBFCs, the risks extend beyond direct financial losses. A cyber incident can also affect customer trust, service availability, data confidentiality and regulatory compliance.
What NBFCs and Customers Should Do
Financial institutions should strengthen multi-factor authentication, restrict access to sensitive systems, monitor unusual transactions and maintain tested incident-response and recovery plans. Regular security assessments, employee awareness programmes and timely software updates can help reduce exposure.
Customers should avoid sharing one-time passwords, PINs or banking credentials with callers claiming to represent a lender. They should verify payment requests through official channels and promptly report unauthorised transactions to their financial institution.
Anyone who suspects cyber-enabled financial fraud in India should report it through the National Cyber Crime Reporting Portal at cybercrime.gov.in or call 1930 for assistance with reporting financial cyber fraud.
What This Means For You
Cybercrime is not limited to individual bank accounts. Financial institutions can also be targeted, and attacks on lenders may create operational and data-security risks for their customers. Treat unexpected payment requests, links and requests for confidential credentials with caution, even when the communication appears professional.
The420 Insight
The reported ₹300 crore loss underscores the need to treat cybersecurity as a core financial risk, particularly for smaller lenders. As AI tools become more accessible, institutions must prepare for increasingly convincing social-engineering attempts while continuing to address basic security weaknesses. The reported figures warrant attention, but the attack methods and any role played by AI must be established through verified investigation findings.
About the Author – Ananya Aradhya writes on cybercrime, fraud, scams, cybersecurity, digital safety, and emerging threats. Her work also covers major criminal cases, financial frauds, consumer scams, and stories that highlight risks affecting people in the real and digital world.
