Theme: Info tech | The rise of stolen digital identities accelerates fraudulent activities in banking

In this State of the Economy podcast, businessline’s Sanjana B talks to Ravi Kumar, Assistant Vice President of IT at CDSL and Rohan Vaidya, Area Vice President, SAARC & India at CyberArk about the rapid growth of cybersecurity in India and the specific threats faced by the Banking, Financial Services, and Insurance (BFSI) sector.  According to industry data, India's cybersecurity market is expected to grow from $6 billion in 2023 to $22.6 billion by 2032, with a compound annual growth rate (CAGR) of 18%. This marks a significant shift in the digital landscape, as the BFSI sector, due to its sensitive data, becomes a prime target for cybercriminals.  Kumar begins by emphasising that phishing is the most common form of cyberattack, responsible for over a third of incidents in India. Cybercriminals often impersonate legitimate entities like banks to steal sensitive customer data. He also explains the growing danger of ransomware, where attackers encrypt data and demand a ransom, sometimes using double extortion tactics to threaten both the victim’s data and privacy. Advanced persistent threats, often backed by state-sponsored actors, have also increased, especially targeting Indian financial institutions. These attacks are difficult to detect and pose a significant risk over long periods.  Kumar also highlights the increasing dangers of supply chain attacks, where attackers target third-party vendors to breach the systems of large institutions. Insider threats, where employees or contractors misuse their access to steal funds or data, continue to be a concern as well.  Vaidya adds that post-COVID, digital identity security has become a crucial issue. As India underwent a massive digital transformation, particularly in banking and payments, the risk of stolen digital identities has skyrocketed. Cybercriminals can use stolen credentials to carry out fraudulent transactions without detection, making identity security a top priority for organisations.  (Host: Sanjana B; Producers: Amitha Rajkumar) About the State of the Economy podcast India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders.