Data theft rising in India

by CXOtoday News Desk    Jul 17, 2013

cybercrime

India is fast becoming one of the most popular destinations for IT fraud. According to an article by TOI, there are several factors as to why India is such a poplar destination for cyber crime.

The country’s IT service industry is valued at USD 108 billion. It is arguably the world’s favored destination for outsourcing. Over 40 per cent of exports by the industry are support services for the global financial sector, ranging from investment bank back-office functions to research, risk-management and processing of insurance claims.

Financial data is one of the most lucrative data for the fraud masterminds. A report by Pune-based firm Indiaforensic titled, ‘Laundering in Cyber World- The Digital Currency Way’ says “Data theft is one of the biggest risks posed before the companies in the banking sector. Emerging underground websites help the data thieves to immediately encash the stolen data. Same data can be sold to multiple interested buyers in these underground black markets.” 

One of the main factors of this rising level of cyber fraud is availability of low cost resources for cyber activities. Data can be sold to multiple interested buyers in these underground black markets. Technology experts like spammers, designers and non technology experts like cashiers, droppers, money mules etc are in demand. These resources are easily available at very low cost. 

Hackers, malwares and phishers have direct links to technology programs capable of gaining access to card numbers, debit card numbers, prepaid value card numbers and bank account details in India. They are also required to buy stolen credit card numbers because mainstream currencies like Euro or USD are not allowed.

This is worrying concern for many as hacking is become increasing common due to a clear nexus between outsourcing firms in the financial vertical. For example, the report said, the recent USD 45 million ATM heist, Bank of Muscat in Oman and the RAKBANK (UAE) had the Business Process Outsourcing (BPO) operations in India.

To counter these challenged posed by cyber criminals, Mayur Joshi, founder member of Indiaforensic suggested ITES based firms and securities agencies need to upgrade infrastructure to check any incident of data theft.