The security measures of the Indian fintech C-Edge Technologies are under scrutiny following a recent malicious cyberattack. As a key provider of IT solutions to Indian financial and banking institutions, higher cybersecurity standards were anticipated, however, the sophistication of threat actors appears to have outpaced these defenses.
The significant ransomware attack severely damaged C-Edge Technologies, leading to a widespread disruption of its payment services. Nearly 300 small banks across India are affected by the attack. Currently, the payment systems of these banks are temporarily shut down.
NPCI (The National Payment Corporation of India), the authority to oversee payment systems, said in the public advisory issued on Wednesday, as quoted by Reuters, that it had "temporarily isolated C-Edge Technologies from accessing the retail payments system operated by NPCI."
"Customers of banks serviced by C-Edge will not be able to access payment systems during the period of isolation," said the NPCI.
"Most of these are small banks and only about 0.5% of the countryโs payment system volumes would be impacted,โ Reuters quoted resources as saying.
India has around 1,500 regional and cooperative banks which mostly operate outside big cities. Some of them have also been affected, the sources added further. Also, NPCI is looking into the matter and conducting an audit to ensure that such incidents do not spread.
The source further revealed that the Indian cyber authorities and the RBI have informed Indian banks regarding possible cyber-attacks during the past few weeks.
Founded in 2010, C-Edge Technologies is a joint venture between the largest bank in the public sector, SBI (State Bank of India), and the IT services firm TCS (Tata Consultancy Services). C-Edge was established in 2010 as a joint venture between the State Bank of India (SBI), India's largest public sector bank, and TCS, a global IT services giant. The company aims to address the unique requirements of Indian banks from cooperative and regional sectors. Over the years, the firm spearheaded the Indian fintech landscape with services including Core Banking Solutions, Payment Solutions, Cybersecurity Services, and Data Analytics and AI.
This incident highlights the need for a robust cybersecurity arrangement to protect the financial sector from potential future danger. Now, it is interesting to watch, how C-Edge upgrades its cybersecurity offerings while addressing vulnerabilities manifested by the threat actors.
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