“RBS Computer Failure ‘Caused By Inexperienced Operative in India”
Almost every process of day to day life is controlled by computers and the banking sector is one of them. Every bank has adopted computer integrated systems to make their process easier and it does. Minor computer malfunctions causes major glitch to banks as the complete system is depended on computer and software. We can take the example of latest computer crisis faced by Royal Bank of Scotland (RBS). This system failure caused major damages and millions of customers faced difficulties to access their account, all this happened because of inexperienced operator in India as per the reports.
RBS discovered this malfunction when all the NatWest, RBS and Ulster Bank transactions were blocked. This meltdown affected all the sectors of these banks which include bill payments to and fro from the accounts, current accounts and mortgage accounts. It is believed that RBS was upgrading key software named as CA-7 which caused the meltdown and wiped the scheduling data as per the investigations of The Guardian. The bank clearly denied that this meltdown has something to do with IT work outsourcing to India however the technology websites reported that this meltdown was caused by inexperienced operator who is based in India.
This may seem like cyber attack because approximately 17 million people suffered but it is no cyber attack, this was an accident which became global catastrophic event. An Indian operator wiped the data accidentally during a regular software upgrade. This incident shows that these kinds of breakdowns can happen and this is a threat to every organization which works on networks. This case raised a lot of questions against outsourcing policies of RBS but ...
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...ons for each set of data should be preferred to prevent loss. Using a firewall, antivirus, Malware block, phishing filter, anti spam filter etc is the best practice. Using the data encryption is networks is the best practice every company should apply to be safe against hackers. External commands can also shut down the systems and this is called as cyber attack which needs to be prevented using strong security systems. Using safe and controlled access to the system is just in case of bigger companies which grants access to authorized persons only.
The conclusion attained from the discussion is that the malfunctions of computer systems are common but these can be prevented using safety measures. Data loss and theft can be answered by backing up the data and using the strong security systems, disaster recovery plans are important in case of data loss or theft.
In the world today, computers are used in every field. Be it a major space exploration or a small chore like cleaning our room. The use of computers has made our lives easier but at the same time a computer failure can make our lives miserable too. We trust computers more than we trust anything else these days. We use computers to communicate, share personal information, buy goods online, etc. We also trust computers with our safety. Starting from house alarm systems and other safety devices we have now moved on to using computers to Test Car Crashes.
Security helps the organization meet its business objectives or mission by protecting its physical and financial resources, reputation, legal position, employees, and other tangible and intangible assets through the selection and application of appropriate safeguards. Businesses should establish roles and responsibilities of all personnel and staff members. However, a Chief Information Officer should be appointed to direct an organization’s day to day management of information assets. Supporting roles are performed by the service providers and include systems operations, whose personnel design and operate the computer systems. Each team member must be held accountable in ensuring all of the rules and policies are being followed, as well as, understanding their roles, responsibilities and functions. Organizations information processing systems are vulnerable to many threats that can inflict various types of damage that can result in significant losses (Harris, 2014). Losses can come from actions from trusted employees that defraud the system, outside hackers, or from careless data entry. The major threat to information protection is error and omissions that data entry personnel, users, system operators and programmers make. To better protect business information resources, organizations should conduct a risk analysis to see what
Jalal Hafidi MIS5206.001– HDFC case analysis 1 1. What, if anything, should HDFC do to make existing customers more secure? First of all, all systems can be compromised no matter what, which means it hasn’t been done yet in the IT field. HDFC is still fairly new in the market, with the technology trend, online banking will be the most challenging and vulnerable part of the game. HDFC seems to have pretty strong security system and procedures, however, its models still haven’t matured yet, leading to maybe inconvenience to the customers and/or an opportunity for hackers to test and dust off their hacking skills.
The Royal Bank of Scotland (RBS) was hired one junior technician in India. The system of the bank was glitch and caused a left millions of customers unable to access their accounts. It accidently happened and wiped out the information during a routine software upgrade. As a Chief Executive of RBS, Stephen Hester assumes that outsourcing never had caused the problems but things go wrong in technology. They have to learn the lessons from what went wrong in RBS and try to make then less likely to happen in the future. It was affected 17 million customers after software updated from the banks’ computer system. It was creating an outstanding more than 100 million transaction that were not paid. They have already made a promise that the bank will repaid for the cost of late payment born as a result of the overdue.
The summary we can make after read the case study is the system down in RBS Company has make the million of customer unable to access their account. The management in Royal Bank of Scotland (RBS) have found people who have caused the problem which is the junior technician from India, who accidentally erased a massive swathe of information during a routine software upgrade...
This is about computer failure of Royal Bank of Scotland (RBS) that happens in India. It is said that it happens because of “inexperienced operative” by Indian staff when doing software upgrade. It is also a blame that the problem occurs because of outsourcing. But, it has been opposed by Stephen Hester, the chief executive of RBS. However, it is already happen and the company needs to responsible to what had happen. The company has to bear losses from 17 million customers that are more than 100 million transaction and all the losses is cost up between £50 million and £100 million.
The foremost challenge was the seamless promotion of the existing banking system and channels for the installation of new state-of-art IT infrastructure. In this regard, the changes made to the structure and functioning of the financial institution challenged the regulatory structure of the bank.
Computers; they are a part of or in millions of homes; they are an intricate part of just about every if not all successful businesses, the government, and the military. Computers have become common place in today’s society and the lives of the people who live in it. They have crossed every national, racial, cultural, educational, and financial barrier, which consequently ushered in the information age. A computer is a programmable electronic device that can store, retrieve and process data, and they come in all shapes, and sizes. They can be used for and in just about anything. As stated before, they are used in just about every aspect of modern society. They are so fundamental to modern society that it would be disastrous to society without them. As stated before, there are many areas in modern society that are run by computers. They play an intricate part of millions of homes in the world. Office workers in business, government and the military may use them to write letters, keep rosters, create budgets, find information, manage projects, communicate with workers, and so on. They are used in education, medicine, music, law enforcement, and unfortunately crime. Because computers have become such a part of the world and how it operates, there is a tremendous responsibility for those who are in control of these computers and the vital information that they carry, to manage and protect them properly. This is management and protection is vital because any loss or damage could be disastrous for the affected entity. For example, a mistake or intentional alteration of a personal credit file could affect ones ability to buy a car or home, or can lead to legal actions against the affected person until the mistake or intentional alteration has been corrected. Therefore, with the advent of computers in the information age, and all of the intentional and unintentional violations against them, comes the need to safeguard them and the information they carry with strong systems and policies of computer security.
The unions also blame fiasco because the decision to outsource much of the company IT source. The error that happen also came after the software being updated froze part of the bank computer system lost on that particular day. The day that this problem occur was in the Wednesday. The system is being recovery and the problem is solved on the Monday.
... work the banks and other financial institutions would also be required to have a system of reporting. If these reports consist of all the necessary information to predict a future crisis or imprudent behaviour in the banks then procedure can be put in place to guide the banks into the appropriate approach.
RBS computer failure ' Caused by inexperienced operative in India ' is simply telling a Royal Bank of Scotland is experiencing huge problems for workers from outsourcing to help make the job of IS / IT in their companies , thus causing the system cannot be accessed by RBS customers who use the service . This problem stems from young technician who deliberate delete information during the process of upgrading the RBS system. This matter has resulted in millions of customers unable to access as well as a loss on the transaction made during the upgrade system is running. The company RBS cannot entirely blame this offense to young technicians but they blame the company for not being careful in a case like this and create a backup plan so that this problem is not widespread so take the time to fix it. Due to the company's failur...
...of security you really need. How important or confidential is your data? Do you have network connections with trading partners that have even more sensitive data? Implement security measures in proportion to your needs.
Undoubtedly, systems are not build based on failure, but this does not mean failure cannot happen. Due to perfect technological assumptions that the system will be working in a perfect manner most analyst don’t take this seriously during the initial stages of system analysis. However, pretending that technology is perfect is not a good idea, eventualities need to be handled in the best way possible, such as requesting a user periodically to a backup data.
“In India, we went straight from no telephones to the latest in mobile technology. Andthe same with internet-connected computers. They came in all of a sudden and no onewas taught even the basic facts about cyber security,...
The first online banking system was created in 1980 in New York, and was adopted by four main banks; Citibank, Chemical, Manufacturers Hanover and Chase Manhattan. The sector needed an innovation in banking systems because of growing consumer demand for service improvements as well as fear of losing market share. In the beginning, online banking was treated at private customers and small companies, to help customers have easier access to their bank accounts, however, now it achieves a global reach through the population. (Cronin 1997) In today’s world, electronic business (E-business) is very important especially for the banking system, plays a fundamental role in online banking (Nasri 2011). A true definition of online banking is difficult, because this system is connecting with different services which are constantly evolving. Access to online banking is possible through the internet, phone or even television. (Daniel, 1999; Mols, 1998). This ‘open system’ is available to the customers twenty four hours a day, seven days a week. This is a multi-level organized system, which helps people pay bills, check credit cards or even arrange mortgages without leave their houses. (Singer 2012)