By Karmesh Gupta, CEO and Co-founder of WiJungle
India has turned into a digitised economy, accelerated by the covid-19 pandemic push to adopt contactless services. As technology advances make more people exposed to online channels, the possibility of fraud people and hacking sensitive information opens up. Eventually, many authorities and business enterprises have taken stringent measures to prevent cyber-attacks, the instances continue to surge at a fast pace with 41,378 attacks reported in 2017 jumping to 14,02,809 attacks in 2021.
Understanding the present cybersecurity scenario
In real terms, the Indian cybersecurity scenario is broadly classified into the pre-Covid and post-Covid eras. As businesses are going digital, IT infrastructure is facing vulnerabilities with a 151% increase in cybercrime in 2021 alone. The rising numbers have paved a clear way for cybersecurity startups. Indian cybersecurity startups are gaining huge prominence as they have grown to over 225 in 2020 from 175 in 2018, doubling the revenue to over $ 1 billion from $475 million in the same period. The surge in revenue is driven by the adoption of digital-first business models that are increasing their cybersecurity spending for enhanced security.
The global business environment has transformed switching to cloud storage systems and digital data management. The digitally driven landscape increases the risk of data breach and theft with internet exposure. This also creates a robust need to make cybersecurity mandatory across industries. Recent stats suggest – the size of the global cybersecurity market is projected to grow at a CAGR of 12% from 2022 to 2030. The constantly changing technological environment is partly attributed to the need for cybersecurity.
Vulnerabilities in cyberspace
The widespread use of technology across domains including fintech, social media, e-commerce, etc. comes with increased chances of fraud cases. Fraud perpetrators are well-equipped with tools and techniques to carry out sophisticated attacks on businesses. Attackers are constantly evolving their techniques by turning more strategic and demonstrating realistic scenarios.
The recent year witnessed several incidents like crypto meltdowns, OTP thefts, frauds associated with UPI and money laundering to name a few. A total of whopping 1,46,495 fraud cases associated with UPI were reported during Q1 and Q2 of 2022.
No digital channel or organisation is immune to cyber threats. However, on a positive note, cybersecurity awareness in 2022 is at an all-time high. Organisations are safeguarding their digital infrastructure and deploying systems to handle sensitive data with more vigilance. For instance, the fintech companies are securing their digital transactions with extra layers of security such as cautioning customers to use QR codes smartly, using in-app support in case of help and setting transaction limits to their bank cards and increasing the frequency of OTP for authentication.
Cybersecurity startups harnessing technology potential
India is planning to take an aggressive route to become a $5 trillion economy and that can be achieved by accelerated digital adoption. Digital platforms gather customers’ sensitive data in abundance. Before adopting the digital-first model, businesses must look beyond the traditional approach to security and harness the potential of new technologies.
Cybersecurity startups innovate at the real of cloud technologies, data analytics, behaviourial metrics, device intelligence, etc. In that scenario, KYC will take the center stage and play a vital role in identifying fraudulent activities including money laundering. To strengthen the infrastructure more, the stakeholders of cyberspace must collaborate to create a robust privacy data infrastructure that is next to impossible for fraud perpetrators to barge in.
In a similar scenario, identity theft is becoming another common crime and is prevailing across the globe. Enterprises must adopt identity verification solutions to safeguard transactions and mitigate money laundering cases. Biometrics and full-proof identification documents can be used to verify identities which can also aid in preventing security breaches.
Final thoughts
Digital financial services are in exponential use due to their convenience and less time-consuming factor. Users can transfer money anytime from anywhere in the world but cybercriminals consider this as an opportunity to make their living. By adding extra layers of security, cybersecurity startups play a crucial role in preventing financial fraud cases and enhancing cyber safety.
