Social ,19 Apr 2025

India Unveils Digital Threat Report 2024 to Fortify BFSI Cybersecurity

In response to the escalating cyber threat landscape targeting India’s critical financial infrastructure, the Government of India, in collaboration with leading cybersecurity agencies and financial regulators, has released the much-anticipated Digital Threat Report 2024. This comprehensive report serves as a strategic roadmap to strengthen cybersecurity across the Banking, Financial Services, and Insurance (BFSI) sector—an industry increasingly vulnerable to sophisticated digital attacks.

With the growing adoption of digital banking, fintech, and real-time payment systems like UPI, India's financial ecosystem has emerged as a high-value target for cybercriminals, making this report both timely and crucial.

 

Rising Cyber Threats in BFSI Sector

According to the Digital Threat Report 2024, the Indian BFSI sector witnessed a 20% surge in cyberattacks in FY2023-24 compared to the previous fiscal year. These incidents include:

1. Phishing and social engineering attacks
2. Ransomware and malware campaigns
3. Data breaches and identity theft
4. API vulnerabilities in fintech platforms
5. Advanced Persistent Threats (APTs) targeting banking infrastructure

The report also notes a sharp rise in cyber frauds involving payment aggregators, digital wallets, and UPI interfaces, especially in Tier II and Tier III cities where digital literacy remains limited.

 

Key Findings from the Digital Threat Report 2024

1. Increase in Payment-Related Threats

1. 1. Over 68% of reported cyber incidents were linked to real-time payment systems, especially UPI and IMPS.
   2. QR-code tampering, fake apps, and payment gateway hijacking are the top tactics used by fraudsters.

2. Targeting of NBFCs and Fintechs

1. 1. Emerging fintechs and non-banking institutions (NBFCs) were 26% more vulnerable to attacks than traditional banks due to relatively weaker cybersecurity protocols.

3. AI-Powered Attacks on the Rise

1. 1. The use of AI and deepfake technologies to launch impersonation and voice phishing (vishing) attacks has surged.
   2. Generative AI is now being used to craft more convincing phishing emails and fake KYC documents.

4. Insider Threats

1. 1. 12% of BFSI-related breaches in 2023 were attributed to insider negligence or malicious intent.

 

Government Response and Policy Measures

To counter these evolving threats, the Ministry of Electronics and IT (MeitY), CERT-In, RBI, and NPCI are jointly introducing a multi-layered cybersecurity framework. The report outlines several key initiatives:

Mandatory Cybersecurity Audits

- Annual security audits and real-time threat assessments will now be mandatory for all BFSI players, including startups and payment intermediaries.

Enhanced KYC and Identity Verification Standards

- Implementation of biometric-based eKYC, facial recognition, and device fingerprinting to reduce identity fraud.

National Threat Intelligence Sharing Platform

- A centralized platform for real-time sharing of threat intelligence among banks, fintechs, regulators, and cybersecurity firms.

AI-Powered Threat Detection

- Promotion of AI/ML-based intrusion detection systems, anomaly detection, and fraud risk scoring.

 

Role of RBI and Financial Regulators

The Reserve Bank of India is playing a pivotal role in tightening cybersecurity protocols:

1. Issuing stricter cybersecurity norms for digital lenders.
2. Creating a Cyber Resilience Index to rate the preparedness of BFSI institutions.
3. Encouraging adoption of zero-trust architecture for critical banking infrastructure.

 

Expert Opinion

“The Digital Threat Report 2024 marks a paradigm shift in India’s cybersecurity strategy for BFSI. It reflects our commitment to protect digital finance while fostering innovation,”
— Rajeev Chandrasekhar, Minister of State for Electronics and IT.

“Cyber resilience is no longer optional—it’s mission critical. This report provides actionable insights for all financial players,”
— Rekha Menon, Cybersecurity Advisor to Fintech Council of India.

 

Implications for Fintechs and Digital Banks

For India's vibrant fintech sector, the report serves as both a warning and an opportunity:

1. Startups and neobanks will need to invest more aggressively in cybersecurity infrastructure.
2. API security, data encryption, and secure DevOps practices will gain prominence.
3. RegTech solutions will see increased demand to automate compliance and audit processes.

 

The Road Ahead

The release of the Digital Threat Report 2024 is a defining moment for India's BFSI sector. It reinforces the need for:

1. Public-private collaboration
2. Cybersecurity skill development
3. Innovation in fraud detection and prevention
4. Responsible data governance

With these measures, India aims to fortify its digital economy, instill user trust, and set global benchmarks for secure digital finance.

 

Conclusion

The Digital Threat Report 2024 is more than just an assessment—it's a strategic blueprint. As India's BFSI ecosystem continues to digitize at an unprecedented pace, the focus must remain on resilience, vigilance, and innovation in cybersecurity. Proactive measures taken today will determine the sector’s security and sustainability in the digital age.