According to the reports of FireEye, a cyber security firm, the mobile applications introduced by the Indian banks for internet money transactions are susceptible to the theft of sensitive financial information and malware infections, formulated to ease out the theft of user credentials.
While, with the banks discouraging cash transactions, the digital payments have become more vulnerable to hackers and malwares.
Furthermore, webinjects and Bugat, two high risk malwares are already detected on the Indian Banking apps, besides the revelation of instances of fake transactions.
According to an FIR filed by the state-owned Bank of Maharashtra in March 2017 in Pune, 50 individuals were accused of illegally pulling money through the UPI app, causing a loss of Rs 6.14 crore to the bank.
Whereas, according to the reports of the National Payment Corporation of India (NPCI), a huge amount of Rs 25 crore was moved out of the Bank of Maharashtra owing to bugs in the bank's Unified Payment Interface (UPI) application.