Government asks e-wallet, e-commerce companies to strengthen cyber security mechanisms


NEW DELHI: As the nation makes the transition to digital mode of payments in the post-demonetisation era, the Union home ministry has asked e-wallet and e-commerce companies to strengthen their cyber security mechanisms to prevent online fraud and hacking attacks.
Sources in the home ministry on Friday said the information technology ministry and all concerned departments and agencies were recently sounded out on the heightened cyber threat arising out of the surge in digital payment transactions. “We stressed on the need for digital wallet and e-commerce companies to ensure secure payments through the digital mode. This has become imperative in the wake of alleged cyber fraud reported recently by Paytm,” said a senior ministry official.
“Considering how more and more people are switching to digital payments, encouraged by the government aiming for a cashless economy, it was an obvious move on our part to caution all concerned agencies against the possibility of cyber frauds and hacking attacks,” said the officer.
Deputy National Security Advisor Arvind Gupta had recently red-flagged the vulnerability of banking industry which has rapidly gone digital over the years, said a PTI report.
In the recent past, he had said, several high profile attacks have taken place on the banks, “this is a worrying trend”.

“Cyber security issues are now top of the national security agenda and such issues are given more importance than even the nuclear issues that used to top the international security agenda,” Gupta had said.
He also asked the banking industry to be more forthcoming in sharing the incidents of financial security frauds and help in chalking out timely response.