New Delhi: The government, as per information shared by the Ministry of Finance after a review meeting conducted by the Department of Financial Services (DFS) recently, has disconnected 70 lakh mobile connections linked to cybercrimes and financial frauds reported through digital intelligence platforms.
This measure has successfully safeguarded ₹900 crore of defrauded money, preventing financial losses for 3.5 lakh victims.
During the meeting chaired by DFS Secretary Vivek Joshi, discussions centred on cyber security in the financial services sector and the rising occurrences of online financial frauds. The ministry emphasised the importance of assessing the readiness of banks and financial institutions to handle challenges arising from cyber threats and digital payment frauds. The meeting also addressed the need for a focused strategy to mitigate cyber-attacks and frauds.
Key topics included enhancing coordination between police, banks, and financial entities for real-time tracking and blocking of defrauded money. Strategies to combat the use of mule accounts by banks were also highlighted, with an emphasis on improving response times to alerts on online financial frauds from various agencies.
Additionally, the meeting focused on incorporating all financial institutions, including NBFCs and major cooperative banks, into the ‘Citizen Financial Cyber Fraud Reporting and Management System (CFCFRMS)’ platform.
The appointment of regional/state-level nodal officers by banks and financial institutions, maintaining a central registry of merchant onboarding, standardising KYC procedures, and whitelisting digital lending apps in consultation with stakeholders were some other topics discussed during the review.
The meeting also worked out the specifics of providing updates on the implementation of recommendations from the digital lending working group, including the establishment of Digital India Trust Agency (DIGITA) and the introduction of the ‘Banning of Unregulated Lending Activities (BULA) Act’.
The Ministry of Finance stressed the importance of customer awareness and sensitisation programs on digital payment security for all stakeholders, including banks and financial institutions.
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