This is a Guest Blog by Mr. Karmesh Gupta, CEO and Co-founder, WiJungle
The covid-19 pandemic’s push for contactless services has accelerated India’s transformation into a digital economy. The possibility of fraudulent individuals and the hacking of sensitive information increases as technological advancements make digital transactions simpler. Although numerous government agencies and businesses have implemented stringent measures to prevent cyberattacks, the number of incidents continues to rise rapidly, with 41,378 attacks reported in 2017 and 14,02,809 in 2021.
The need for a more advanced cybersecurity framework has never been greater than it is now, as the IT infrastructure’s vulnerabilities continue to increase. The vulnerable landscape of cyberspace is being altered by the proliferation of cybersecurity startup companies. Indian cybersecurity startups are gaining a lot of attention. There will be over 225 of them in 2020, up from 175 in 2018, and their revenue will have doubled to over $ 1 billion from $475 million during that time. Organizations’ cybersecurity expenditures have increased as a result of the adoption of digital-first business models.
Several cybersecurity startups are working towards the detection of fraud, validating identities and assuring cybersecurity across networks.
Cyber fraud cases
the widespread application of technology in fields like fintech, social media, e-commerce, and others. comes with a higher potential for fraud cases. In order to carry out sophisticated attacks on businesses, fraudsters are well-equipped with tools and strategies. Several incidents occurred in the past year, including, but not limited to, crypto meltdowns, OTP thefts, UPI-related fraud, and money laundering.
By turning more strategic and presenting realistic scenarios, attackers are constantly evolving their methods. Between the first and second quarters of 2022, a staggering 1,46,495 cases of fraud involving UPI were reported. This clearly demonstrates the necessity for businesses to implement robust cybersecurity products and solutions in order to safeguard their clients from financial losses.
Securing digital transactions
Digitization in the payment landscape has taken a leap due to extensive mobile and internet penetration. Furthermore, the emergence of fintech startups and convenient online payment methods has played a crucial role in the meteoric rise in the number of digital transactions in India. This calls for caution among customers to make sure their digital payment decisions are safe and secure.
To secure digital payments, customers must keep themselves aware of techniques that are commonly used by attackers to fetch money. Cybersecurity startups and business enterprises play a significant role in spreading awareness about such activities including cautioning customers to use QR codes smartly, using in-app support in case of help and setting transaction limits to their bank cards. In addition, companies facilitating digital payments can also add extra layers of security to enhance the financial safety and security of customers.
The rapid adoption of digital technologies can help India achieve its ambitious goal of becoming a $5 trillion economy. However, the development of a robust cybersecurity infrastructure must be prioritized if India is to avoid having its capabilities compromised by the digital transformation. A lot of sensitive customer data is gathered by digital platforms. Businesses must look beyond the conventional approach to security and capitalize on the potential of emerging technologies before implementing the digital-first model.
Cloud technologies, data analytics, behavioral metrics, device intelligence, and other innovations are at the heart of cybersecurity startups’ innovations. In that scenario, KYC will take center stage and play a crucial role in identifying money laundering and other fraudulent activities. Cyberspace stakeholders must work together to build a robust privacy data infrastructure that fraudsters can’t break into, strengthening the infrastructure even further.
Similar to this, identity theft is becoming an increasingly widespread crime worldwide. To prevent money laundering and safeguard transactions, businesses must implement identity verification solutions. In addition to assisting in the prevention of security breaches, biometrics and fully secure identification documents can be used to verify identities.
Digital financial services are becoming increasingly popular because they are convenient and take less time to use. Cybercriminals see this as an opportunity to earn a living because users can transfer money at any time, from anywhere in the world. Startups in cybersecurity play a crucial role in preventing cases of financial fraud and improving cyber safety by adding additional layers of security.