Why Cyber-Security needs to be a priority in Banking

Traditional ‎bank robbers are being ‎left in the dust by organised cybercriminals. The most serious security problems in the ‎banking industry ‎nowadays are cyber ‎threats. Millions of transactions are processed daily by ‎ banks and other ‎financial institutions ‎, with the bulk of them taking place through ‎digital payment transfer systems. ‎ As a result, fraudsters have found banks to be attractive targets.

Why Industry is a target for cybercrime (Business Risks)‎

Consumers ‎have relatively little to lose from cyberattacks on banks, provided they haven’t been lax about safeguarding their information ‎and they quickly notify ‎the bank if funds are missing.

U.S. federal ‎ law requires ‎banks to refund customers if ‎someone takes money from their account without authorization and they notify the bank within 60 days ‎ of the transactions ‎ appearing on their bank statement. Business accounts, however, have fewer protections ‎and could be subject ‎to greater losses.

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How Industry is targeted (Technical Threats)‎

Third-party data breaches

Hackers ‎ will constantly come up with new ways to attack data security. A new ‎door has opened thanks to modern bank services and ‎internet technologies that allow for quick transactions ‎and account maintenance. Hackers are using common ‎financial systems and third-party networks to carry out assaults ‎as banks and consumers grow more digitally ‎intertwined. Hackers can quickly access the network if these systems are not adequately ‎protected by a cybersecurity plan.

Mobile Apps

As more ‎individuals access their bank account via mobile applications, ‎cybersecurity risks increase. Most ‎users do not actively secure ‎their personal devices, which ‎means they have low to no security protection in the event of an attack. This makes ‎the ‎magnitude of an attack much bigger. Utilizing a safe banking software ‎solution is key to avert malicious activities ‎ from your mobile apps.

Cryptocurrency Hacks

Cryptocurrency, ‎which was founded in ‎2009, is still relatively young, and many of the ‎ decentralised currency marketplaces are not ‎sufficiently secured. Many large breaches of ‎ ‎cryptocurrency exchanges and other cryptocurrency-related ‎services have occurred during the ‎last ten years as a consequence of phishing, malware, and targeted attacks. ‎The unpleasant ‎reality in the ‎market is that there aren't many options to deploy banking cybersecurity software in crypto ‎outside of crypto wallets and blockchain technology. Attackers will have an easier time stealing bitcoin and profiting on market ‎gains if security is not improved.

The‎ possible losses banks might face ‎as a consequence of cyber-attacks on their platform are:

Cyber attacks can cause substantial ‎financial losses for the customer as well as the banks through false transactions.‎

Attackers might sell the confidential information they steal from the banking ‎institution. The stolen data is later used for malicious purposes.

Hackers may begin targeting specific customers that are part of the organization. ‎This may result in customer identity theft or customer frustrations.

The public image of the financial institution will be damaged for insufficient infor‎mation security compliance.

The number of cyberattacks in the banking ‎industry is increasing, but there are several ways to minimize the risk of getting hacked.

Manually monitoring every transaction ‎requests to check for possible threats ‎is impractical. Therefore, banks will have to switch to using a process automation solution to automate all monitoring‎ and scanning processes, ‎block and filter malicious traffic from getting into the ‎network. An ideal security solution will stop and screen suspicious ‎activities and track patterns of these attacks and work accordingly. ‎Moreover, these cyber solutions must be easy to customize and configure.

The right security solution

Making employees aware of the threats that are commonly faced by financial ‎institutions is essential for preventing most of them. Since many of the cyber attackers targets employees and ‎try to extract information from them, awareness of such activities and what ‎to expect needs to be made aware to the team. For example, all employees working ‎in the banking institution must be aware of the risks ‎of downloading or opening email attachments that come from unknown or unreliable sources. This is particularly important‎ since many cyber attacks are from viruses that ‎come through these attachments. Banks must also prohibit their employees ‎from sharing confidential information.

Educate Employees

Cyber attacks can always be traced back to some loophole or minor vulnerab‎ilities in the internal ‎systems and network setups. Look out for anything such as missing ‎security rules, development bugs, misconfigured ‎systems, or outdated extensions, since these might end up being the loopholes that hackers later take advantage of. ‎Vulnerability assessments can help identify lagging infrastructure on the security section ‎and correct them. At the same time, ‎penetration tests can simulate real-life cyber attacks to test the strength of the security system.

Audit all systems regularly

How cybersecurity can help against cybercrimes)‎

Cybersecurity in digital banking is something that cannot be ‎compromised with. With the ‎growth in the digitalization in the banking industry, it has become more prone to ‎attacks from cybercriminals. Therefore there needs to be a foolproof Cybersecurity that doesn’t c‎ompromise with the safety of customer’s and financial institution’s data and money.

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