Rise of cyber attacks: digital India on the frontline

The rise of cyber attacks poses a crucial risk to India's economic ambitions. Industries, ranging from manufacturing to pharmaceuticals, are becoming increasingly vulnerable as they digitize their operations, says a Google subsidiary. Over the past six months, attacks have risen sharply, according to Amit Pradhan, India consultancy leader for Mandiant, a cybersecurity company owned by Alphabet Inc's Google Cloud. Indeed, an outage at Suzuki Motorcycle India forced the company to halt production in May, and India's largest drugmaker admitted in March that a ransomware attack would impact revenues.

Cyber security neglect: a consequence of rapid digital growth

The breaches highlight how companies in India, the world's most populous nation, may have neglected cybersecurity as their digital infrastructure rapidly expanded. India is pushing vigorously to become a global powerhouse in areas such as electronics manufacturing and an alternative to China, which has lost some of its appeal as a "world factory" due to tensions with the United States. Ransomware attacks, in which a hacker encrypts files and demands a ransom payment, increased by 53% in India in 2022, according to a report by CERT-In, the country's cyberthreat agency.

Improving security measures: a necessary investment

The increase in high-profile incidents has fueled the demand for security software. Companies are now turning to Mandiant not only for emergencies but also to implement preventative measures. However, due to budgetary constraints, Indian companies are still investing less in protection than their counterparts in many other regions. “The country lags far behind developed nations in the importance placed on cybersecurity,” Pradhan said.

Artificial intelligence: a double-edged sword for cyber security

Some companies are taking steps to reduce vulnerabilities. L&T Technology Services Ltd. is planning to increase its cybersecurity spending by up to 50% next year, according to Chief Operating Officer Abhishek Sinha. He said the company is moving to a "zero trust" architecture that limits employees and vendors' access to only the data they need. However, the growing popularity of artificial intelligence presents a dilemma for cybersecurity experts. Security software companies, such as Crowdstrike Holdings Inc., use AI to identify gaps in IT systems. But on the other hand, hackers are using ChatGPT and other tools to write compelling malware code and phishing emails, says CrowdStrike consultant Smit Kotadiya. "Usually, we could spot grammatical errors in phishing emails," Kotadiya said. "Now, hackers are smarter than ever."