Due to the increased modernization, the information that we once used to store in physical format is now being stored in our computers or on the cloud. And as they say, anything that is connected to the world wide web is hackable. Global interconnectivity, however, brings along demerits and vulnerabilities of its own, which can be exploited by cybercriminals and hackers alike. For combating vulnerabilities caused by the cybercriminals, NBFC’s need to make their cybersecurity robust.
As compared to other sectors around the world, the financial sector faces almost 3 times the cyber-attacks. Below mentioned is the role cybersecurity plays in the NBFC sector.
Protection from Cyber Threats – Malware and Virus attacks have caused chaos not just in our country but across the globe and by analyzing their history we find that these attacks will become more persuasive in the future. Cybercriminals use brute force model of infect, lock and extort, while other models are more sophisticated in nature. These kinds of attacks generate a lot of profits for cybercriminals.
Protection of confidential information – The most costly outcome for a company from various kinds of cyber attack is Data Leakage. Confidential files which are the company’s most valuable assets, if leaked once it attributes to more than just monetary loss. Needless to say, not only the data of such a sensitive nature is the key to success for the company but also the development of the country, since NBFC’s play a pivotal role in developing the financial system of the country. This sensitive information that is stored on a company’s network could include records of finance, physical assets, passwords, and access codes. Such breach of security can cost a company dearly, as a dissatisfied customer could slap a lawsuit on the company leading to hefty fines, which the company might not afford.
Since the non-banking financial institutions are more prone to cyber threats and attacks from both internal and external sources. Policies, periodic third-party audits with active port maintenance, Information security and educating the users, protects the business and its functions, which should be considered through the business lifecycle. For the non banking finance companies it is recommended, that they abide by the IT framework which has been framed by the RBI (Reserve Bank Of India) and NHB for protecting their companies from attacks originating from the internet and other cyber threats, which is prone to reputational risk and data breach of sensitive information, of the customers, financial data loss. In this dynamic world, to lead one’s company to greater heights and profits, it is mandatory for the company to be more facile in all fronts.
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1 Comments
viji
The information you’ve shared in this blog is remarkable. Thanks for sharing such quality information.
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