Cyber Crimes :
A cyber crime can be defined as “criminal activity carried out by using computers and internet”. A cyber crime can also be defined as “use of computers and/ or other electronic devices via information systems like computer network, internet to handle illegal activities like transfer of funds, withdrawal of funds through unauthorized access”
In cyber crimes, computers are either used as tools and/or targets. So the computer which is an electronic devise is used as a medium of cyber crimes.
Effects of cyber crimes:
1. Financial loss 2. Sabotage and theft to identifiable information 3. Exposed to reputation risks 4. Infringement of confidential information 5.Legal consequences 6. Operational risks
Reasons for cyber crimes:
Easy access to data:
If a cyber criminal is able to break into a computer’s system, the access to the sensitive data including customer’s confidential financial data, information can be copied into a small removable device. Since information technology drives the functioning of corporate, individuals, banks and government departments and other professionals, the storage of unprotected sensitive data and information in their computers pose a significant threat.
Negligence on the part of the users:
Individuals and the employees, officers, executives and other professionals who use the computer systems should be vigilant to protect their information and sensitive data stored in the computers. They should be very careful while using such devices by protecting the access to the system through proper usage of Personal Identification Number (PIN) and passwords. Any negligence on their part would make the cyber criminals’ access to such devices and information easy
Lack of internal control in organizations and banks:
A computer system works based on instructions received from operating systems which are driven by a number of codes. An in-effective internal control and IT audit system would lead to lapses in the computerized environment on account of availability of inefficient hardware systems and software systems. Hence banks should ensure that ongoing internal control and IT audit systems are in place. All software used for operating systems should be preaudited by an IT auditor and certified about their sensitivity, integrity and security. The operating systems should have clear demarcation of access by users at different levels. Since banks use many operating systems for their daily operations for transfer of funds, maintain customer deposit and loan and other accounts, preparation of regulatory returns, financial statements like balance sheets, P&L accounts and other sensitive information and data, allows Core Banking Solutions, use RTGS,NEFT, ECS etc., there should be an effective control to avoid unauthorized access. Hence, the access to the operating systems should have dual control of access based on authorizations.