Description

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Context

The Ministry of Electronics and Information Technology along with CERT-In, CSIRT-Fin and global cybersecurity firm SISA launched India’s first Digital Threat Report 2024.

The report is focused on enhancing cybersecurity resilience in the Banking, Financial Services, and Insurance (BFSI) sector.

Need for the Report

Rapid digitalization of BFSI has expanded the attack surface.

Digital payments projected to reach $3.1 trillion by 2028 making the sector a high-value target.

BFSI sector’s interconnectedness increases the risk of systemic failure due to cyberattacks.

Importance

Offers real world threat intelligence using forensic insights, cybersecurity oversight and financial incident response.

Aims to empower financial institutions to

Anticipate and counter emerging cyber threats.
Strengthen systemic cyber defenses.
Build long term cyber resilience.

Acts as a strategic guide for India’s BFSI sector amid rising digitalization and cybercrime.

Highlights of the Report

Theme	Details
Social Engineering Threats	Rise in Business Email Compromise and phishing using tailored tactics to bypass security barriers.
Supply Chain Vulnerabilities	Increased cyber risk via third-party vendors and open-source software; highlights need for robust vendor risk management.
Compliance Transformation	Shift from rigid regulatory compliance to harmonized, strategic frameworks that support cyber resilience and operational efficiency.
Persistent Control Gaps	Common issues include misconfigurations, over-privileged access and weak access controls even in mature organizations.
AI-Powered Threats	Cybercriminals using AI tools to launch personalized, scalable attacks; defenders also leveraging AI for predictive security.
Collaborative Cyber Defence	Emphasizes shared responsibility among regulators, tech providers and financial institutions for a unified cybersecurity approach.
Holistic Sector-Wide Analysis	Identifies systemic risks not just entity-level threats highlighting the interconnected nature of the BFSI ecosystem.
Cybersecurity as Economic Stability Pillar	Recognized as critical infrastructure as digital payments expected to touch $3.1 trillion by 2028 accounting for 35% of banking revenue.

Sources:

PIB

PRACTICE QUESTION

Q. With reference to the recently released Digital Threat Report 2024, critically examine the emerging cyber threats to India’s BFSI sector. What measures are needed to enhance cyber resilience in this sector? 250 Words