“Where there is Money, There will be Frauds” is a truth every financial professional knows. The increased use of technology in the Banking, Financial Services and Insurance (BFSI) business has introduced the dimension of “Fraud Management” as part of business responsibilities of BFSI business. Banks and other financial entities have been quick to adapt to the technological revolution and have converted most of their businesses online. This of course makes good commercial sense since costs might be reduced and customers may enjoy anytime anywhere services. However, what is necessary to take note is the increased fraud risks accompanied by the change in procedures accompanying the use of technology.

This situation of “Immature Procedures and disengagement of power and responsibility” is a sure recipe for proliferation of frauds. Hence we can foresee a quantum increase in financial frauds in the coming days and the BFSI industry will be the worst hit with this trend. It is therefore no surprise when “Cyber Crime Studies” show that there is an increasing number of “Organized attacks on Banking institutions”. The Broking and Insurance industries may not be as much as in news as the Banks. The reason could be that the fraudsters are first milking the Banking industry and may look at other industries when the getting goes tough in the Banking. Alternatively it may be a fact that frauds in the Broking and Insurance industry are more subtle and difficult to find out.  Cyber Financial Frauds are therefore like time bombs ticking to explode some time and in some cases may even take the institution down under.

The use of technology in business has also changed the profile of the people who work in BFSI industries. Most of them are young and technically more skilled than their superiors. As a result, technology power and administrative responsibility is in different hands.

To address the needs of improving the Security awareness amongst the staff of a BFSI, Cyber Law College has pioneered a “Cyber Ethics Certification Programme” which consists of a half day “Awareness Workshop” including a presentation, Exit Test and signing of an “Ethical Declaration”.

Such a programme is being successfully implemented for the members of IT Companies engaged in Health Information Processing for US clients where HIPAA has made such training mandatory. Cyber Law College has also developed similar standards for Legal BPOs under the LIPS 1008 (Legal Information protection Standard) and is in the process of developing an Indian Financial Services Information Protection Standard (IFIPS) addressing the needs of Information Security needs of small Banks, online brokers and Insurance companies.

It is high time that RBI makes it mandatory for all Banks in India to undertake a training programme for its staff for certifying them as “Ethical Cyber Bankers”.


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