Cyber Security in Banking: Biggest Threats to Overcome
In recent years, the increasing and frequent use of technology in the banking sector has become very prominent. Every transaction that needed customers to go to the bank physically can now be done online, especially after the pandemic.
However, this also comes with the high risk of breach of cyberspace. The IT sector has been struggling to make sure these instances do not happen on a frequent basis, and with the banking sector too taking a leap and switching to online transactions, it has become even more tempting for fraudulent organizations to function more freely and frequently. Hacking, virus attacks, fraudulent activity, etc. Have become a common ethos in today’s world, and curbing all of can be tricky, but is easily doable, given people are educated about what these are, how they can be avoided, how to identify them, and what to do if one comes across any of these.
In the event of a cyber-attack, cyber insurance helps ensure that the organization stays economically secure. Cyber insurance also helps pay for the systems that have been damaged and help rebuild the lost data.
Among the most frequent cyber threats that banks encounter are -
• Phishing Attacks: When a financial institution's network is under assault, such as by an APT, phishing attacks take place, which has disastrous implications for the organization. An APT allows unauthorized users to access a system for an extended length of time while remaining undetected.
• Spoofing: In this case, hackers create a similar layout and replicate the domain of a financial website. In the event that a user is not paying attention, this enables hackers to acquire login information.
• Ransomware: This online menace encrypts crucial data and prevents its owners from accessing it until a ransom is paid. The threat to all banking institutions is very serious. Trading platforms and cryptocurrencies are also impacted by this.
• Cloud-based Cyber Attacks: Cybercriminals have begun launching cloud-based cyberattacks as a result of the growing amount of data being kept in cloud-based systems. This is currently one of the biggest concerns facing the banking sector. Banks must make sure that their systems are safe in order to avoid this.
•Social Engineering: Customers are the most vulnerable in the security chain when it comes to social engineering. They are frequently duped into disclosing private financial information, which can have an effect not only on them but also on the bank and its other clients.
"Banks are one of the most used amenities by the common people everywhere. Everyone is going cashless and has started using digital money and cards to make transactions."
Banks can make their cyber systems secure by -
• Cyber insurance: In the event of a cyber-attack, cyber insurance helps ensure that the organization stays economically secure. Cyber insurance also helps pay for the systems that have been damaged and help rebuild the lost data.
• Multi-factor authentication: This is a verification method in which the customer can only gain access after providing two or more login credentials such as fingerprints or passwords. Multi-factor authentication can be used by banks as well as it provides an additional layer of security when the user is accessing important or confidential information.
• Antivirus applications: While adding a firewall will enhance protection, it cannot protect the software from an attack without the help of an antivirus and anti-malware installation. This is why updating to the latest applications is of utmost importance.
• Consumer awareness: Last but not least, consumer awareness is one of the most important aspects of cyber security. The user must be aware of not sharing their personal credentials with anyone. In case of any breach from the user, they should inform the cyber security cell as well as their bank at the earliest.
Banks are one of the most used amenities by the common people everywhere. Everyone is going cashless and has started using digital money and cards to make transactions. While turning to a digital era is not wrong, taking precautions should be a common practice. Data breaches make it difficult for customers to trust banking institutions. Banking staff should be educated about the dangers of turning to an online phase, and how to tackle any difficulties faced. Activities such as Network Security Surveillance must be undergone regularly for sensitive data such as that of a bank. Training sessions entailing the use of the data too must be done in order to ensure safety. As we move to the digital era, the fine print reading all of these details must be taken very seriously.