Over 400,000 incidents of cyber crime have been thwarted, saving more than Rs 1,000 crore through the Citizen Financial Cyber Fraud Reporting and Management System, as per information shared in the Lok Sabha on Monday. The system enables immediate reporting of financial fraud and aims to prevent fund siphoning by fraudsters. Minister of State for Finance Bhagwat Karad stated that, as of December 4, the system has saved over Rs 1,000 crore in over four lakh incidents. Responding to an inquiry about UCO Bank accounts, the minister mentioned that the bank has recovered Rs 705.31 crore out of the Rs 820 crore erroneously transferred. UCO Bank reported a significant digital fraud and lodged an FIR with the Central Bureau of Investigation on November 11.
In addition to the positive outcomes reported, the minister highlighted a meeting convened by the Department of Financial Services on November 28 to address issues related to cybersecurity in the financial services sector. The meeting, attended by representatives from various ministries, the Reserve Bank of India (RBI), the Telecom Regulatory Authority of India, the Unique Identification Authority of India, the Indian Cyber Crime Coordination Centre, the National Payments Corporation of India, and banks, focused on assessing the preparedness of banks and financial institutions in dealing with cybersecurity challenges. The discussions also addressed the increasing trend of digital payment frauds, and a focused approach was deliberated to mitigate cyber-attacks and frauds in the financial services sector.
The Citizen Financial Cyber Fraud Reporting and Management System has played a crucial role in proactively addressing financial frauds. By allowing immediate reporting of such incidents, it aids in preventing the loss of funds by enabling quick response and intervention. As of December 4, the system has successfully saved over Rs 1,000 crore, demonstrating its effectiveness in combating cyber crimes related to financial fraud.
UCO Bank, which faced a significant digital fraud incident, has managed to recover a substantial amount of the erroneously transferred funds. By December 7, the bank recovered Rs 705.31 crore out of the total Rs 820 crore that was reported as being mistakenly transferred. This recovery showcases the bank’s efforts to rectify the situation and reclaim the funds that were compromised in the digital fraud.
In response to the rising challenges of cybersecurity in the financial services sector, a meeting was convened on November 28 by the Department of Financial Services. The meeting brought together key stakeholders, including representatives from ministries, RBI, regulatory bodies, and banks. The discussions aimed to assess the readiness of banks and financial institutions in dealing with cybersecurity challenges, particularly in light of the increasing incidents of online financial frauds. The deliberations focused on formulating a focused approach to mitigate cyber-attacks and frauds, emphasizing the importance of collaboration and preparedness across the financial ecosystem.
In summary, the proactive measures taken through the Citizen Financial Cyber Fraud Reporting and Management System have proven successful in preventing over 400,000 incidents of cyber crime and saving more than Rs 1,000 crore. The recovery efforts by UCO Bank also underscore the commitment to rectifying digital fraud incidents and reclaiming funds. The ongoing discussions and collaborative efforts within the financial sector reflect a collective commitment to strengthening cybersecurity measures and safeguarding against the evolving threats in the digital landscape.
