Daily Current Affairs : 3-August-2024

C-Edge Technologies Ltd., a technology service provider for cooperative and regional rural banks in India, was recently hit by a ransomware attack. This incident has raised significant concerns about cybersecurity in India’s banking sector, especially for smaller and regional banks.

What Happened?

The attack affected around 200 cooperative banks and regional rural banks (RRBs) across India. As a result, the National Payments Corporation of India (NPCI) temporarily suspended all retail payment operations in the affected banks. This disruption affected key banking services like UPI (Unified Payments Interface) and Aadhaar-enabled Payment Systems (AePS), which are widely used by customers for everyday banking transactions.

  • Banks Affected: Around 200 cooperative banks and RRBs
  • Services Disrupted: UPI and AePS operations
  • Action Taken: Temporary suspension of retail payments by NPCI

What is Ransomware?

Ransomware is a type of malicious software (malware) that locks users or organizations out of their files by encrypting them. The attackers demand a ransom payment in exchange for the decryption key needed to restore access to the files. In some cases, ransomware also steals sensitive data, which adds pressure on victims to pay the ransom.

  • Key Characteristics of Ransomware:
  • Encrypts files, making them inaccessible
  • Demands ransom for decryption key
  • May steal sensitive data

Ransomware attacks have become a major cybersecurity threat, affecting various sectors including hospitals, public services, and private organizations. The financial sector is particularly vulnerable as these attacks can disrupt critical services like payments and data storage.

Consequences of the Attack

The ransomware attack on C-Edge Technologies Ltd. highlights the growing risk to India’s banking infrastructure, particularly for smaller banks that rely on third-party service providers for technology solutions. The suspension of UPI and AePS operations caused significant inconvenience to customers and businesses that rely on digital payments. Moreover, such attacks can damage the reputation of affected institutions and undermine public trust in digital banking systems.

Important Points:

  • C-Edge Technologies Ltd. was hit by a ransomware attack, affecting cooperative and regional rural banks (RRBs) in India.
  • Around 200 banks were impacted, leading to disruptions in critical banking services.
  • The National Payments Corporation of India (NPCI) temporarily suspended all retail payment operations in affected banks.
  • Key services disrupted included UPI (Unified Payments Interface) and Aadhaar-enabled Payment Systems (AePS), which are widely used for daily banking transactions.
  • Ransomware is malicious software that encrypts files, making them inaccessible, and demands a ransom for the decryption key.
  • Some ransomware variants also steal sensitive data, further pressuring victims to pay the ransom.
  • Ransomware attacks have become a significant threat to various sectors, including healthcare, public services, and financial institutions.
  • The attack highlights the vulnerability of smaller banks that rely on third-party service providers like C-Edge Technologies for technology infrastructure.
  • The suspension of UPI and AePS caused inconvenience to customers and businesses relying on digital payments.
  • The attack underscores the growing need for improved cybersecurity measures to protect sensitive financial data and banking services.

Why In News

C-Edge Technologies Ltd., a technology service provider for cooperative and regional rural banks in India, was likely hit by a ransomware attack, raising concerns about the vulnerability of the country’s banking infrastructure to cyber threats.

MCQs about Ransomware Attack Disrupts Banking Services in India

  1. What type of cyberattack likely affected C-Edge Technologies Ltd.?
    A. Phishing Attack
    B. Ransomware Attack
    C. DDoS Attack
    D. Malware Attack
    Correct Answer: B. Ransomware Attack
    Explanation: The essay discusses a ransomware attack on C-Edge Technologies Ltd., which impacted cooperative and regional rural banks, disrupting key services like UPI and AePS.
  2. Which of the following banking services were disrupted due to the ransomware attack?
    A. ATM withdrawals
    B. UPI (Unified Payments Interface) and Aadhaar-enabled Payment Systems (AePS)
    C. Credit card transactions
    D. Bank branch operations
    Correct Answer: B. UPI (Unified Payments Interface) and Aadhaar-enabled Payment Systems (AePS)
    Explanation: The ransomware attack caused a disruption in the UPI and AePS services, which are widely used for digital transactions in India.
  3. What action did the National Payments Corporation of India (NPCI) take in response to the ransomware attack?
    A. Increased security measures
    B. Suspended all retail payment operations in affected banks
    C. Increased customer support services
    D. Reopened affected banks immediately
    Correct Answer: B. Suspended all retail payment operations in affected banks
    Explanation: NPCI temporarily suspended all retail payment operations in the affected banks to prevent further damage and maintain security.
  4. What is one of the key features of ransomware ?
    A. It steals money from bank accounts
    B. It encrypts files and demands a ransom for the decryption key
    C. It improves system performance
    D. It spreads viruses across a network
    Correct Answer: B. It encrypts files and demands a ransom for the decryption key
    Explanation: Ransomware is malicious software that encrypts files, making them inaccessible, and demands a ransom for the key needed to restore access to the files.

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