Central Bank urges banks to improve cyber security amid rising fraud

As incidents of cyber crimes are on the rise and fraudsters becoming increasingly innovative in their methods, the Central Bank urged Sri Lanka’s banking and financial sector to improve their safeguards.

Central Bank of Sri Lanka Senior Deputy Governor Yvette Fernando noted that implementing new frameworks in this regard could slowdown operations, however, this is an area that the industry cannot afford to let its guard down.

“For effectively combating of cyber crime in the banking sector, regulators need to adapt to new and emerging cyber projects. This requires ongoing collaboration with the financial industry and cyber-security.

“Banks, on the other hand, need to invest in cyber-security measures, train their staff to get the necessary expertise and stay vigilant against this from evolving further,” said Fernando.

Fernando shared her views while addressing Identity and Access Management (IAM) CXO event for banking and financial services industry leaders hosted by WSO2.

She added that as the regulator, the Central Bank encourages banks to proactively identify, assess and mitigate these risks, as they are vital to safeguarding the financial system and protecting customer interests to ensure the confidence on the financial system. 

“Additionally, enhancing technology resilience ensures uninterrupted service delivery, instill trust and confidence among the stakeholders and ultimately contributes to the stability and resilience of the banking sector,” said Fernando.

The senior CB official went on to stress that banks have a “big” responsibility in convincing their respective boards to improve emphasis in this regard.

Meanwhile, WSO2 Founder and CEO Dr. Sanjiva Weerawarana noted that in today’s competitive landscape, financial institutions, particularly banks, must go beyond mere compliance to proactively digitise operations, enhancing both security and customer experience. 

“In the era of digital transformation, it is not enough to simply meet regulatory requirements; banks must leverage IAM to innovate and streamline their services, ultimately providing a superior customer experience while safeguarding sensitive information,” he said.