Cyber attacks can cause substantial financial losses for the customer as well as the banks through false transactions.
Cyber Security for Banking
Why Cyber-Security needs to be a priority in Banking Why Cyber-Security needs to be a priority in Banking 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:
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.