Fraudulent Accounts Ignored? Banks Under Scrutiny for Rising Cyber Crimes

New Delhi: A growing cyber threat has alarmed authorities as central cyber and intelligence agencies have flagged concerns to the Union Ministry of Home Affairs (MHA) over unrestricted access to critical banking data by bank employees and third-party vendors. According to intelligence inputs, such access has led to an increase in online financial frauds, resulting in massive monetary losses for citizens.

Rising Cyber Fraud Due to Data Leaks

Officials report that the widespread sharing of sensitive banking information with outsourced staff and third-party vendors has been a key factor in the surge of fraudulent activities. Intelligence agencies have identified that these data leaks are being exploited by cybercriminals, who breach online banking systems to commit financial fraud.

An intelligence source stated, “Highly sensitive financial data exposure to outsourced staff and third-party vendors has led to rampant information leaks. Cybercriminals are using this data to breach banking systems and defraud people.”

Complicity of Senior Bank Officials Suspected

A meeting was recently convened by the Ministry of Home Affairs with senior officials from financial and banking institutions to address this crisis. Reports indicate that both public and private sector banks have repeatedly failed to take action against fraudulent accounts despite multiple complaints. Additionally, intelligence agencies suspect that some high-ranking bank officials may be complicit in these cyber frauds.

ALSO READ: Pensioners’ Bank Accounts at Risk! Join This Webinar Before Cyber Criminals Strike!

A source privy to the meeting revealed, “The trend is alarming. The complicity of senior bank officials cannot be ruled out, as banks have consistently failed to act against fraudulent activities despite repeated complaints.”

Banks Ignoring Fraudulent Accounts on NCRP

Authorities have pointed out that banking institutions have failed to act on nearly half of the fraudulent accounts reported on the National Cybercrime Reporting Portal (NCRP). A detailed analytical presentation at the meeting highlighted alarming trends, including the rise of mule accounts and slow response times from banks, contributing to the increase in online financial fraud.

Experts at the meeting emphasized that the banking sector must take stringent measures to improve cybersecurity and align their security architecture with the latest Reserve Bank of India (RBI) advisories.

Government Steps In to Curb the Menace

In response to these intelligence inputs, the government is considering strict regulatory measures to curb unauthorized banking data access. A senior official noted, “The issue was discussed in detail, and instructions have been passed to devise a concrete solution to this growing menace.”

Cybersecurity experts have also advised customers to be extra vigilant, monitor their bank accounts regularly, and avoid sharing sensitive financial details with anyone.

Follow The420.in on

 Telegram, Facebook, Twitter, LinkedIn, Instagram and YouTube