FinTechs, NBFCs to protect customers from cyber security threats during the festive season

With the holiday season underway, there are various sales on every e-commerce portal. Traditional businesses that have operated only offline have also gone online to cash in on the festive glow. As India pushes for an overhaul of its economy and tries to push digital payments, many unsuspecting customers are unaware of the cyber security threats that pose a major danger not just to a consumer but to global economies.

These threats range from simple online scams to sophisticated full-fledged cyber attacks against financial institutions. Criminals are ready to trick unsuspecting consumers, especially the new user. It is most important to never click on unverified links, share one-time codes, bank accounts and passwords with anyone. Confirm and cross-confirm before paying online. This type of activity usually increases during the holiday season when financial transactions increase for both online and offline media.

And one can only be safe from this cyber security threat when Fintechs and NBFCs come up with measures to stop all such illegal activities. Balaji Jagannathan, Co-Founder and Director, Paycorp.io has shared some more interesting tips. “Expenditure usually increases during the festive season, mainly due to the abundance of offers and discounts. Consumers often fall victim to scams as a result of increased spending, and when these events are added together, they pose a serious security risk to the IT infrastructure of any business.

It is in this regard that financial institutions make a remarkable difference, first by acquainting them with the necessary information to strengthen the first line of security. While increased awareness helps minimize the possibilities of a threat, fintech also helps with different layers of protection.

For example, with recurring payment solutions, a direct interface between the fintech partner and various banks ensures zero scope of security threats as well as errors. The key to cyber security for any business is to improve and upgrade the infrastructure with the help of a suitable partner that offers the most secure solutions.” With this, he has focused on notification companies, which will offer safe and secure payment solutions.

Keep your eyes open and watch out for unknown people asking you to deposit money into your account without any reason for the transaction. There have been cases where criminals have deposited a small amount into your account and then called you to return it. Now they have your details and with the use of technology they transfer more money from your account. Being too cautious is the only way forward.

Karunya Sampath, Co-Founder and CEO, Payoda Technologies spoke about the need for customers to become a conscious consumer. “There are many ways that the right technology and assistance can help customers protect their customers from cybersecurity threats during the holiday season and even beyond. Knowing what you currently own and where you’ve invested is the first and most important step to take in this connection. Individuals can benefit from tools like NSDL-CAS Statements and MFCentral, which bring together all their equity and mutual fund holdings and present a consolidated perspective.”

He further added about using technology to track your accounts, “The next step involves using multi-factor authentication, which you need to set up across all of your accounts. It’s important to use MFA to secure all of your accounts, whether they’re trading accounts, mutual funds or banks.The most important thing is to be aware of phishing tools such as an email.

Don’t get carried away and click on a random link, because most cyber attacks are carried out this way. It is equally important to use strong passwords and, if possible, a password manager to create and store unique passwords. Let’s not forget to respect updates and actually update the software often. To keep threat actors at bay, software updates are essential whether you’re using a phone or a desktop computer. It is recommended to enable automatic updates.”

It is possible to enjoy the holiday season and take advantage of sales when consumers are alert and companies provide a secure payment gateway.

Article Contributed by Mr. Balaji Jagannathan, Director & Co-Founder, Paycorp.io and Ms. Karunya Sampath, CEO & Co-Founder, Payoda Technologies