The banks in India are now realizing the adverse effects of cyber crimes. Particularly, with the e-banking services on the rise, the banks are taking all due diligence and prevention measures to prevent cyber-attacks. Many international laws are now been scanned by banks for compliance to various provisions including standards, measures.

As a result, most of the Indian Banks are in compliance with the PATRIOT ACT of the US.  Apart from Phishing, the cyber terrorism is another major concern for the banks. The terrorists use the loopholes in the security system of an organizations to launch a terrorist attacks by making use of the security system of the organization. This practice is called cyber terrorism.

But, most banks fail to render compliance with the INDIAN IT ACT which has introduced many provisions for prevention of cyber-attacks and  some reasonable security guidelines for taking due diligence.

The IT ACT also provides provisions for Cyber terrorism under Section 66 and also the reasonable security measures for due diligence under Section 43. The banking sector has to be aware of these provisions and should also comply with the provisions of IT ACT.

Report by Sai Sushanth