Data breaches could cost Indian firms Rs 11 crore this year, says IBM report

Indian companies could lose Rs 11 crore to data breaches this year, up 12.3% from last year, a report by tech giant IBM said on Tuesday.

A breach is described as an event where an individual’s name and a medical/financial record is potentially put at risk – either in electronic or paper format.

Interestingly, the average cost of a data breach globally is expected to decline by 10% this year to $3.62 million (Rs 23.35 crore) compared to last year.

The study, conducted by Ponemon Institute, found that the average per capita cost of data breach increased from Rs 3,704 in 2016 to Rs 4,210 in 2017.

41% of the Indian companies said they experienced a data breach as a result of malicious or criminal attacks.

IBM report

Another 33% experienced a data breach as a result of system glitches, while 26% of data breaches involved employee or contractor negligence (ie human factor).

“Services, financial, industrial and technology companies had a per capita cost well above the mean of Rs 4,210, while public sector, research and transportation companies had a per capita cost well below the mean,” the study added.

The study, in its sixth edition this year, examined the costs incurred by 39 Indian companies in 13 industry sectors.

“The study clearly outlines the rapidly changing threat scenario through a significant rise in both number and sophistication of breaches,” IBM India/South Asia Integrated Security Leader Kartik Shahani said.

He added that securing data on cloud is of top priority as cloud services have become the key for digital enterprise transformation.

“Enterprises need to ensure that robust security practices are adopted, incident response plans are in place and regular security training given to all stakeholders of the company,” he said.

The study found the average number of breached records was around 33,167. Both indirect and direct costs related to data breaches have surged over the past year.

Indirect costs, which refer to the amount of time, effort and other organisational resources spent to resolve a breach, increased from Rs 1,923 to Rs 2,212 per capita.

Direct costs — expenses like purchasing a technology or hiring a consultant — rose from Rs 1,781 to Rs 1,998 per capita.

 

Don’t report frauds below Rs 1 lakh to police: CVC to banks

The Central Vigilance Commission (CVC) has asked public sector banks not to report frauds below Rs one lakh to local police, unless their staff is involved in such crimes.

Earlier banks were mandated to report fraud of above Rs 10,000 and below Rs one lakh to police.

The decision was taken by the CVC in consultation with the Reserve Bank of India (RBI), taking into the account the practical difficulties faced by public sector banks in reporting such categories of cases.

CVC

It has been decided that only if staff of the bank is involved in the fraud cases of below Rs one lakh and above Rs 10,000, would such cases need to be reported or complaint filed with local police station by the bank branch concerned, the commission said in a directive to chiefs of all the banks.

The cases of frauds of upto Rs one lakh and not below Rs 10,000 are to be scrutinised by banks officials concerned for further necessary action, a senior CVC official said.

As of September 30, 2016, the Non-Performing Assets (NPAs) declared by various scheduled commercial banks stood at a whopping Rs 6,65,864 crore, according to an official data.

The NPAs of the country’s largest lender State Bank of India is Rs 97,356 crore, followed by Rs 54,640 crore of Punjab National Bank and Rs 44,040 crore of Bank of India, it said.

Bank of Baroda has NPAs of Rs 35,467 crore, Canara Bank Rs 31,466 crore, Indian Overseas Bank Rs 31,073 crore, Union Bank of India Rs 27,891 crore, IDBI Bank Limited Rs 25,973 crore, Central Bank of India Rs 25,718 crore, Allahabad Bank Rs 18,852 crore and Oriental Bank of Commerce Rs 18,383 crore, said the data, which was given by the government in Rajya Sabha in August last year.

 

Delhi Metro moves SC against order to pay Rs 60cr to ReIiance Infra subsidiary

The Delhi Metro Rail Corporation (DMRC) has petitioned before the Supreme Court against the Delhi High Court order directing the company to pay Rs 60 crore to Delhi Airport Metro Express Private Limited (DAMEPL), a subsidiary of Anil Ambani-owned Reliance Infrastructure Limited (RInfra).

In May, the arbitration over Delhi metro’s controversial airport express line was decided in favour of DAMEPL. The company said it won an arbitration of Rs 2,950 crore along with interest payable by DMRC. It said that the total amount is Rs 4670 crore.

Following the win, the Anil Ambani owned subsidiary moved the Delhi High Court for early payment of the arbitration award by DMRC. DAMEPL sought Rs 3,502 crore, which is 75% of the arbitral award of Rs 4,670 crore, citing a NITI Aayog notice.

Delhi news

The High Court on May 30 had directed DMRC to pay Rs 60 crore as interest for three months to DAMEPL for the loan it had taken for the express metro line. This is an interim payment before the case for 75% of the award is decided.

The corporation had challenged this order before a HC division bench, which refused a breather, DMRC, then moved the apex court.

DAMEPL had participated in a public private partnership (PPP) project with DMRC in 2008, to jointly develop the 22.7 km line connecting the New Delhi railway station with airport terminal T3.

But operations were suspended in July 2012 after DAMEPL complained of construction defects in the rail lines built by DMRC.

RInfra terminated the agreement in October 2012 and the matter went into arbitration as DMRC did not accept the termination of the agreement.

DMRC built the infrastructure and DAMEPL brought in the rolling stock and was supposed to run the express metro line for 30 years.