The average cost of data breaches in India surged by nearly 28 per cent to $2.18 million between 2020 and 2023, according to the Reserve Bank of India's 'Currency and Finance Report' for 2023-2024.
While the figure surge is concerning, the country's average data breach cost is well below the global average. The central bank also stated in its report that phishing is the most common type of attack in India, accounting for nearly 22 per cent of all data breach activities.
On the global front, cybercrime costs are projected to skyrocket from $8.15 trillion in 2023 to $13.82 trillion by 2028. The average cost of a data breach has also increased to $4.45 million in 2023, which is 15 per cent higher as compared to 2020.
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Keeping in view the surging cost figures, most central banks have boosted their cybersecurity investment budgets by five per cent since 2020.
"While digitalisation offers enhanced convenience and accessibility, the growing complexity of financial products also introduces new challenges in ensuring customer protection. With the increasing adoption of digital payments, the share of complaints related to mobile/electronic banking, ATM/debit cards and credit cards received in the offices of the RBI ombudsman accounted for 47 per cent of total complaints in 2022-23," the report read.
Quite recently, the central bank has intensified its oversight over financial institutions, especially those involved in lending due to operational inefficiencies.
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Earlier this year, RBI halted Kotak Mahindra Bank from onboarding new customers via online route and from issuing credit cards. This action was taken in response to alleged non-compliance and "serious deficiencies" in the bank's IT infrastructure.
"Data is the pulse of the digital economy. The explosion in the data volume necessitates innovative approaches for data protection and resilience to secure digital information for uninterrupted functioning of the digital economy," the report added.
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