Risk of unauthorized system access in E-Banking in India

This paper analyzed the bankers’ viewpoint towards the factors responsible for risk of unauthorized system access in e-banking in India, its potential impacts and the risk management measures taken by selected public, private and foreign banks. A sample of 107, 104 and 100 respondents is taken for data collection from the different branches located in Haryana, Punjab, Chandigarh and Delhi from selected public, private and foreign banks respectively. Statistical techniques such as mean, mode, standard deviation have been used for the analysis of data. ANOVA technique has been applied to validate the results. The analysis shows that entry of hackers into the system is found as the most important factor leading to the risk of unauthorized system access in the selected banks followed by the interception of confidential information and virus injected into the bank's system in public sector banks; and virus injected into the bank's system and interception of confidential information in private sector banks; and interception of confidential information and information access by unauthorized third party in foreign banks. Further, the loss of data is found as the most potential impact on public and private sector banks followed by theft or tempering with customers’ information; whereas theft or tempering with customers’ information is found as the most potential impact on foreign banks followed by the disability of bank's internal computer system. However, firewalls is considered as the most adopting risk management measure in public and private sector banks followed by password management, whereas proper authorization of end users is found as the most adopting measure in foreign banks followed by firewalls and password management.