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PayTech: Key Takeaways: Twitter Chat on Digit Payments & Cyber Security

Blog: NASSCOM Official Blog

Digital Payments is one of the most thriving sectors in across the globe, especially during the current pandemic. According to a recent Capgemini research, with 75% of Indian consumers adopting digital payments in India, India has already recorded highest Spike in digital payments during COVID19, the global average being much lower at 45%!

Parallelly, this sudden shift to digital payment platforms globally, especially in India, has also led to many malicious activities in this space with over 3.5 lakh Cyber Security incidents in July and August, 3X as compared to the first 3 months of 2020!

NASSCOM Insights in association with Mr. Arun Kumar, Head – Managed Security Operations, Tata Advanced Systems Limited, hosted a Twitter Chat on 25th Sep 2020 on Digital Payments & Cyber Security. The key topic of the Twitter Chat was The Rise of Digital Payments & Growing Privacy Concerns and the panelist onboard for this chat along with Ms. Priyanka Naik was Ms. Shivani Aggarwal, BFSI, Fintech & Blockchain Research Practice Lead at NASSCOM Insights.

Top Key takeaways from the Twitter Chat on The Rise of Digital Payments & Growing Privacy Concerns:

  1. Significance (Criticality) of Cyber Security for the digital payments’ arena specifically

Cyber Security is one of the most critical challenges faced by the digital payment ecosystem. As more & more people use digital payments, the chances of getting exposed to Cyber Attacks such as financial fraud, information theft, malware and viruses magnify too.

Digital payment frauds already account for about half of all bank frauds in India – Source: RBI

Further, according to the initial findings of one of NASSCOM’s recent survey, majority of digital payment users in India are concerned about financial fraud and Identity theft – showcasing the urgent need of cyber security in this industry.

Another majority in the same survey hosted by NASSCOM, cite that Malware and Phishing attacks in digital payments are big concerns for them, showcasing payments #cybersecurity as even more critical for the industry.

  1. Impact of Covid 19 on Cyber Security Concerns in India

The short-medium-term effects of COVID19 on India’s digital payments landscape have been vast, with certain digital payment methods UPI, contactless cards, digital wallet-based payments seeing a huge uptick in India in the current pandemic. More

As the Covid19 pandemic forces consumers to opt digital #payments (due to the virus fear), there has been a rapid rise in cybercrime as well In India specifically.

ACI Worldwide cited in a recent report that 50%+ #Indian consumers are more concerned about digital payments fraud now than when COVID first emerged!

ACI also cited that nearly 1/3rd Indians are being recent victims of cards or digital payments fraud or know someone in their family or friends who has been. These highlight the massive impact that Covid 19 has had not only on Digital payments but also on the already ripe payments security concern in India.

  1. Top PII (Personally identifiable information) Concerns in India & Recommendations to Build Customer Trust

With numerous entities involved in part or full in every digital payment transaction from merchant to banks to payment gateways to customers, there are multiple sources of risk in such a technology intensive operation which can devastate a digital transaction if not handled properly.

Hence it becomes extremely critical for the entities involved in the payment processing value chain to handle sensitive customer data, especially PII with extreme caution. Collection of such personal data should be limited to such data that is extremely necessary for the purposes of digital payments processing.

Top PII Risks in Digital Transactions today are:

These risks give rise to identity theft, social engineering attacks both at consumer and merchant/financial establishment level.

Top PII handling recommendations for Securing personal data and building customer confidence in digital transactions:

  1. Role of Emerging Technologies in combatting such security concerns in digital payments

Emerging Technologies like Machine Learning, Blockchain, Soundwave technology, QRCode technology can be phenomenal in combating frauds like spyware, malware, identity theft, etc. in digital payments.

Networks Tokenization, biometrics Authentication are other innovations that can be used to magnify payments cybersecurity.

Jupiter Research’s latest study forecasts $2 Tr digital payments to be authenticated by biometrics alone by #2023! That will be a breakthrough in combatting cyber frauds in digital payments.

Sound wave technology is particularly a disruptive tech innovation that can be used to transmit secured and encrypted transaction data through a unique sound wave. More

  1. Role of Digital Financial Literacy in Increasing Digital Payments Security

Fraudsters tend to exploit digital payment users’ lack of awareness through cyberattacks. Also, according to the initial findings of a recent survey of NASSCOM, Digital financial education in India is really low with most users in India depending on unorganized information sources like Free Videos & webinars, Friends & Family!

Formal digital financial education channels like bank and Government provided training, are barely used by payment users in India – according to the initial findings of the same survey of NASSCOM. Lack of formal methods & Lack of inclusive digital financial literacy leads to the majority of cyber payment frauds India.

  1. Role of The Personal Data Protection Bill in Increasing Digital Payments Security

This is the bill for the consumers and plays a huge role in increasing the extent of security in the digital payments arena in India and building consumer trust in digital payments. A few of the key areas that the bill proposes to cover are:

If the bill gets converted into an Act soon, it will be transformational for the digital payments arena of the country bringing about a huge amount of confidence in digital transactions, magnifying digital payments like never before.

Also, JPC is working on changes to be made in Indian PDPB and they must ensure that Cyber Privacy as per the NIST 800-53 along with Privacy by design and Privacy by default must be implemented so that digital payments are safe and trustworthy.

  1. Key Recommendations stakeholders to Avoid Cyber Fraud in Digital Payments

Cyber Frauds can be avoided with the implementation of a robust access control system and privacy by default & by design controls and with encryption, pseudonymization, data masking methods, etc.

To present in a simpler language, some of the key measures that can be taken by various stakeholders in the digital payments system to avoid cyber frauds are:

Service Providers:


Digi Payment Ecosystem:

  1. Specific Regulatory Support needed in the future to spin the wheel and magnify cybersecurity in India’s Digital payments

RBI already:

Future Government and Regulatory Support needed for building digital India’s payments cybersecurity:

Login more to read through the full Twitter Chat with Mr. Arun Kumar & Shivani Aggarwal at


The post PayTech: Key Takeaways: Twitter Chat on Digit Payments & Cyber Security appeared first on NASSCOM Community |The Official Community of Indian IT Industry.

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