The followings are some reasons, 1. Through technology development, banking services have become available 24 hours a day, days a week, through ATMs, at online bankingand in electronically enabled exchanges where everything from stocks to currency futures contracts can be traded.
This system is secured through security mechanisms like http and https. The customer can download various types of application as per the requirements.
The regulator has also set norms that put losses due to cyber attacks almost exclusively on banks. In order to tackle with cyber crime, Delhi police have trained of its officers in handling cyber crime and placed them in its economic offences wing.
Technology risks not only have a direct impact on a bank as operational risks but can also exacerbate other risks like credit risks and market risks. Spyware works by capturing information either on the computer, or while it is transmitted between the computer and websites. Indian banking sector cannot avoid banking activities carried out through electronic medium as the study suggest that there has been an increase in the number of payments in e-banking.
It has given rise to new opportunities in every field we can think of- be it entertainment, business, sports or education. The fraudster then has admittance to the client's online financial balance available in the bank account and to the funds contained in that account by making the misuse of the detail received from the customer fraudulently.
On one hand, technology has created advantage for banks and financial institutions but on the other hand, there have been risks involved in it also. RBI in its Report stated that when bank frauds are of less than one Crore then it may not be necessary to call for the attention of the Special Committee Board 2.
Currently, India has 88 scheduled commercial banks — 27 public sector banks, 31 private banks and 38 foreign banks.
As per India, we follow asymmetric crypto system which requires two keys, public and private, for encryption and decryption of data.