look news india
With the increasing prevalence of digital banking and online financial transactions, the methods of cyber criminals have become more sophisticated and dangerous than ever before. Using Artificial Intelligence (AI), Generative AI and Deepfake technology, cyber fraudsters are now directly targeting the data servers, user credentials and authentication systems of banks. In view of the serious threat of these complex AI-based cyber attacks, major public and private sector banks of the country have come together and taken protective steps. Banks have announced strategic partnerships with 25 leading tech and cyber security companies of the world. Let us understand from the perspective of a tech and cybersecurity reporter how this security loop will work and how it will benefit common customers.
‘AI Defense Network’ ready by joining hands with 25 tech giants
To strengthen banking security, leading banks of the country (like SBI, HDFC, ICICI, PNB etc.) have joined hands with 25 leading global tech and cyber security providers like Microsoft, Google, Palo Alto Networks, Cisco etc.
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Real-Time Threat Detective System: Under this partnership, banks are creating such an AI-powered defense infrastructure that will detect any kind of abnormal activity (Anomaly Detection) in the system even before a cyber attack occurs.
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24/7 Automated Monitoring: The system will be operational round the clock and will identify and block millions of fraudulent transactions, suspicious IP addresses or malware attacks in seconds.
3 biggest AI threats facing the banking sector
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Deepfakes and voice cloning frauds: With the help of AI, criminals are trying to do fake authentication and huge transactions by cloning the voice and face of customers or top officials of the bank.
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Advanced Phishing Attacks (AI Phishing): Passwords and OTPs of bank customers are being stolen through highly realistic emails and messages generated by AI.
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System Loophole Hacking: Hackers are increasingly finding hidden security vulnerabilities in the core banking software of banks using AI algorithms.
Customer protection and new guidelines of RBI
The Reserve Bank of India (RBI) has also issued instructions to all financial institutions to mandatorily implement AI based fraud detection mechanisms.
The main goal of this collaboration with 25 leading companies is to implement ‘Multi-Factor Biometric Authentication’ and ‘Behavioral Analysis’. This means that even if a cyber fraudster gets hold of your password or OTP, the AI system will stop the transaction as soon as it detects activity that is different from the customer’s normal behavior and location. With this, the hard-earned money of common customers will be completely protected from digital fraud.