Why Investors Need to Take Cybersecurity Seriously! m.Stock Podcast with Hari Nair

Hari: Do not compromise on the processes though it's boring. Do not compromise on the monitoring consumers protects financial services. There are certain things you should not look for convenience security your financial security is paramount then convenience certain times it's okay getting into your bank account every time type password and go inside take over DP and do a transactions I see the big change is going to be again the point which I earlier mentioned about regulatory framework that is going to be the that's going to be the big game change in the five years down the line we never thought 10 years down the line or 15 years before that we are going to settle down with such a cyber security framework with regulator what we sitting down now so which means 5 years down tonight it's going to be even complex.

Shiv: Welcome to another exciting episode of Bazaar and Beyond, where we dive into the latest trends, insights, and expert opinions shaping industries today,to help you make smarter decisions with your money. I’m Shiv, and in this episode, we’re tackling a topic that’s absolutely critical in today’s digital-first world: cybersecurity in financial services.

Joining us is someone who truly understands this complex space,Mr. Hari Nair, CTO at Mirae Asset Capital Markets, with over 20 years of experience at the intersection of finance and technology. Hari sir, welcome to the show!

Hari: Thank you, Shiv. I’m excited to be here and I hope your listeners find this conversation valuable.

Why is cybersecurity becoming critical in fintech?

Shiv: Let’s start at the top,why is cybersecurity such a big deal in the financial services sector today?

Hari: While all industries face cyber threats, financial services are a top target because we hold very sensitive data,customer profiles, PAN, Aadhaar, financial transactions. That’s a goldmine for attackers.
Second, regulatory compliance from RBI, SEBI, and others mandates how this data is stored and used, which adds pressure.
Third, insider threats,employees or contractors who misuse access,can cause major damage. These three factors make cybersecurity absolutely critical in fintech.

How do financial institutions prepare for cyber attacks?

Shiv: How do institutions like yours prepare for these threats?

Hari: We focus on four key areas:

1. AI-powered detection: We use artificial intelligence to detect and block threats in real time,like unusual network traffic from specific sources.
2. Employee awareness: We run phishing simulations and training to make staff cautious.
3. Internal audits: Regular audits help track who has access to what data.
4. Data segmentation: We don’t store everything in one place,data is spread across systems to reduce risk.

What are the major cybersecurity threats facing fintech today?

Shiv: What are the biggest threats financial firms face today?

Hari: The three main types:

• Ransomware: Attackers steal or encrypt data and demand money.
• Phishing: Impersonation scams to steal information.
• DDoS (Distributed Denial of Service): Attackers use multiple infected systems to crash services. This can come from non-state actors aiming to disrupt financial stability.

 How do you balance innovation with security?

Shiv: Financial services are evolving rapidly,how do you balance innovation with strong cybersecurity?

Hari: It’s not either/or. We invest in new tech like AI and machine learning to identify vulnerabilities, but we also follow regulatory processes,GDPR, India’s upcoming DPDP Act, SEBI norms.
Every financial institution must implement these guidelines before worrying about fancy tools. Compliance is non-negotiable.

What role does AI play in cybersecurity?

Shiv: Let’s go deeper into AI,what role does it play in fintech security?

Hari: AI is changing the game. Traditional systems detect threats as they happen. AI learns from past incidents to predict and prevent attacks early.
For example, if an attack three months ago began with a small anomaly, AI helps detect similar behavior much earlier today.
It’s not yet embedded in every system, but the adoption is rising fast.

How do data privacy laws like GDPR and DPDP impact fintech?

Shiv: How do privacy regulations like GDPR and DPDP impact your work?

Hari: Massively. These laws regulate how we collect, store, and share personal information.
For example, if a customer’s PAN is verified through a third party, the customer must be informed. The new DPDP Act also gives users the right to revoke consent and demand data deletion.
We need strong governance, storage practices, and audit trails to comply.

What are some early warning signs of a cyber breach?

Shiv: Are there red flags that indicate a breach might be happening?

Hari: There are, but they’re tricky. Most attacks happen for financial gain,stealing data or corrupting it so the organization can’t use it.
We monitor unusual access behavior, spam/phishing attempts, and invest in layered access.
We also avoid storing all data centrally and use misleading naming conventions,so attackers can’t easily query a database.

Tips for consumers to stay safe online

Shiv: What can everyday fintech users do to protect themselves?

Hari: Here are a few basics:

• Don’t use easily guessable passwords like names or birthdays.
• Never share OTPs or Aadhaar/PAN details.
• Don’t click suspicious links or emails.
• Avoid using Face ID or fingerprint login for financial apps,it's convenient but risky.
• Enable transaction alerts. Many people don’t, and they only find out about fraud later.

How prepared is India for the next 5 years of cyber threats?

Shiv: What’s your outlook on India’s fintech cybersecurity preparedness in the next 5 years?

Hari: We’ve come a long way. Ten years ago, breach detection took days. Today, it takes minutes.
In the next five years:

• Detection and response will get even faster, thanks to AI.
• Regulatory frameworks like DPDP will empower consumers.
• Data will be better distributed, encrypted, and controlled.

India’s digital journey has created more footprints,but we’re also building the frameworks to secure them.

What’s the future of cybersecurity?

Shiv: What upcoming technologies or strategies are you most excited about?

Hari: Three key trends:

1. Integrated security: Security should be built into apps, not added later.
2. Quantum encryption: Stronger, smarter ways to encrypt data are coming.
3. Cyber awareness: Every employee must be trained. Like salary slip math, basic cyber hygiene should be part of onboarding.

And on the regulatory side, I’m happy that India is taking data protection seriously,with stricter audits and new roles like Chief Data Protection Officer becoming standard.

Shiv: That was incredibly insightful. Thank you, Hari sir, for sharing your experience and making such a complex topic easy to understand.

Hari: Thank you, Shiv. It was a pleasure, and I look forward to future sessions. Let’s all stay informed, stay secure, and build a safer digital world together.

Shiv: To our listeners,thanks for tuning in. Stay secure, stay informed, and of course… happy investing.