Integrating CPS in digital payments 5.0
Aishwarya Balan, Pratham Nijhawan, Vineet Kumar Ramnani, Kamal Upreti, Puja Kumari · 2025
Integrating cyber-physical systems (CPS) into digital payment infrastructures has revolutionized the financial landscape while introducing significant security vulnerabilities. CPS, which bridges digital networks and physical payment components, creates a complex ecosystem increasingly targeted by sophisticated cyberattacks. This study critically examines the architecture of digital payment systems, highlighting critical vulnerabilities exposed by notable cyber incidents, such as malware infiltrations, phishing, and Distributed Denial of Service (DDoS) attacks. These threats underscore the inadequacy of current security measures in protecting payment infrastructures. To address these challenges, emerging technologies, including advanced cryptographic techniques, blockchain integration, and artificial intelligence (AI)-driven fraud detection, are proposed as essential tools for strengthening security. Regulatory frameworks, particularly India’s Reserve Bank Cyber Security Framework, play a pivotal role in mitigating risks, but global implementation still needs to be consistent, leaving gaps in protection. The study advocates for a robust, interdisciplinary approach involving governments, financial institutions, and academic researchers to develop adaptive, scalable security solutions capable of addressing the rapidly changing threat landscape. Constant innovation and collaboration are crucial to safeguarding the integrity of digital payment systems in the face of increasingly complex cyberattacks.