Extent of Cyber Fraud related Loss in Indian Banks

In an answer given in the Parliament, the IT Minister, (based on RBI records) has reported  the following information on Cyber Frauds in Banks.

Year No of cases(Card and Internet Banking) Amount (Rs Cr)
2011-12 10048 38
2012-13 8765 68
2013-2014 9500 78
2014-2015(9 months Upto Dec 2014) 9362 60

At the same time, as per the Minister’s statement,  CERT IN has provided some details on the phishing incidents.

Year No of Phishing incidents
2012 887
2013 955
2014 1122
2015 84

Reference: Article in Business Standard

The undersigned had also asked for similar information from RBI through an RTI application which has resulted in the following data as on April 30, 2015

Year No of Cases Amount (Rs Cr)

Amount Recovered through Insurance

(Rs Cr)

Internet Banking Credit Card Internet banking Credit Card Internet Banking Credit Card
2009 268 1063 2.799 26.567 0 1.013
2010 257 450 1.077 7.752 0 0.912
2011 125 424 0.982 8.142 0 0.366
2012 97 465 3.919 11.129 0.107 1.269
2013 148 721 1.177 29.350 0.0005 5.302
2014 61 512 0.854 9.759 0 0.994
2015 (Upto March) 13 150 35.31 42.76 0 0.225

One can see that there is no correlation between what RBI has given to the undersigned directly and what the Minister has stated in the Parliament.

This lack of reliability of Cyber Crime data is what is making it extremely difficult for the industry to understand the impact of Cyber Crimes on business.

I recently had an an occasion to discuss this with the representatives of the Insurance industry also and found that there is virtually no clarity on the domain of Cyber Crime insurance though some of the insurance brokers have been offering it in the form of liability insurance. But if the Cyber Crime Insurance industry has to come out with useful offers that would provide confidence to the IT user community, then there is a need for a major initiative by the Government to give a boost to the industry in some form.The Information Security professionals in the country need to put their heads together and work out a plan  of action to leverage the Information security initiatives of user industries by appropriate cyber insurance coverage.

Naavi

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About Vijayashankar Na

Naavi is a veteran Cyber Law specialist in India and is presently working from Bangalore as an Information Assurance Consultant. Pioneered concepts such as ITA 2008 compliance, Naavi is also the founder of Cyber Law College, a virtual Cyber Law Education institution. He now has been focusing on the projects such as Secure Digital India and Cyber Insurance
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