2025, Vol. 5, Issue 2, Part C

Digital banking has transformed the financial sector by offering real-time services, mobile accessibility, and user-friendly digital platforms. While this modernization has improved convenience and financial inclusion, it has also presented significant challenges related to data privacy, cybersecurity, and regulatory oversight. This paper explores the evolution of digital banking, the shift from traditional fraud to modern cyber-enabled attacks, and the growing risks associated with phishing, malware, identity theft, and account takeovers. It further examines key security concerns arising from third-party fintech integration, cross-border data flows, and the use of modern technologies such as artificial intelligence and biometrics. The article also analyses the regulatory frameworks that govern digital banking internationally and within India, highlighting the roles of data protection laws, cybersecurity regulations, and financial governance standards. Despite progress, gaps remain in implementation, user awareness, vendor-risk management, and institutional preparedness. Strengthening cybersecurity infrastructure, promoting digital literacy, and improving coordination between financial institutions, regulators, and technology providers are vital for building a secure and resilient digital banking ecosystem. The paper concludes that safeguarding digital banking requires a balanced approach that combines robust legal frameworks, advanced technological safeguards, and responsible data-governance practices