Negative Impacts of Technology in Banking Sector

Negative Impacts of Technology in Banking Sector

Negative impact of technology in banking sector

Information Technology solutions have paved a way to a new world of internet, business networking and e-banking, budding as a solution to reduce costs, change the sophisticated economic affairs to more easier, speedy, efficient, and time saving method of transactions. Internet has emerged as a blessing for the present pace of life but at the same time also resulted in various threats to the consumers and other institutions for which it’s proved to be most beneficial. Various criminals like hackers, crackers have been able to pave their way to interfere with the internet accounts through various techniques like hacking the Domain Name Server (DNS), Internet Provider’s (IP) address, spoofing, phishing, internet phishing etc. and have been successful in gaining “unauthorized access” to the user’s computer system and stolen useful data to gain huge profits from customer’s accounts.

Thus Technology has come with its advantages. But it also has its negative effects; the case in question is the introduction of e-commerce in the banking sector; a technology hitherto known as "E-Banking".

  Hacker:
  Hacker is computer expert who uses his knowledge to gain unauthorized access to the computer network. He’s not any person who intends to break through the system but also includes one who has no intent to damage the system but intends to learn more by using one’s computer. Information Technology Act 2000 doesn’t make hacking per se an offence. Crackers on other hand use the information cause disruption to the network for personal and political motives. Hacking by an insider or an employee is quite prominent in present date. Section 66 (b) of the Information Technology Act 2000, provides punishment of imprisonment for the term of 3 years and fine which may extent to two lakhs rupees, or with both.

  Following are the common types of attack by hackers/crackers:

    • Phishing:
    • Identity theft, also known as...

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