Why Cybersecurity Is Important in The Banking Sector
Updated: Jul 8, 2020
The banking sector has been under attack for quite some time now, and cumulatively, cybercrime costs banks north of $1 trillion annually. Crimes that targeted the banking sector have shifted from simple physical theft to computer fraud. Since we’re deeply invested in the digital age, fraud has become complex, and hackers have now started obtaining people’s personally identifiable information (PII).
Since companies and individuals prefer doing most of their transactions online, the risks of cyber threats in banking have increased tenfold.
Why Banking Institutions Need Cyber Security
The obvious advantage of cybersecurity is the protection of customer assets and transactions from fraudulent individuals and groups. Since stolen PII can be redirected for so many malicious purposes, even banking institutions have trouble recovering data. When cyber attackers take banking customers’ data for hostage, they have no option but to pay hundreds of thousands of dollars to recover data. Even when the data gets released, a cyber attack shakes customers’ trust in the security systems of the bank.
3 Modern Cyber Threats in Banking
While you already have an idea about the potential threat cybercriminals pose for the banking sector, here are some other threats that banks need to be worried about.
More people are accessing their mobile information via apps, and many of these people have minimal security.
Since banks have upgraded their security, cyber hackers have turned to third-party networks or shared banking systems to gain access.
With many people investing in cryptocurrency, hackers have directed their attention to these sources, especially when its value begins to appreciate.
What Measures Can Safeguard Banks Against Cybercrime?
Since the ongoing state of online transactions is in jeopardy, banking customers need to either consider enhancing or completely replacing their current cybersecurity applications. While they do so, here’s what banking institutions are doing to counter cyber threats:
Implementing a Multi-Layered Email Strategy
Since the email was found to be the most common way cyber attackers get into a banking network, banking institutions have started using Domain-based Message Reporting and Conformance (DMARC), Domain Keys Identified Email (DKIM), and Sender Policy Framework (SPF). Combining these protocols minimize the risk of phishing attacks in business emails.
Establishing Internal Checks and Balances
Whether a financial transaction was authorized by a newly-hired employee or the CFO himself, these transactions will always undergo a process of checks and verifications. Only after transactions have passed through this process will they finally be approved.
Deploying Tailored Cybersecurity Training Programs
Banking institutions are implementing training programs inside their organization to present cybersecurity in multiple ways while catering to multiple types of learning. They aren’t just making use of a generic video of cyber threats. These training programs include real-life examples of cybersecurity measures with hand-on simulations alongside teaching employees SOP for a cyber attack as well.
Modern technology is evolving, and so are the cyber threats faced by the banking sector. Since banks are a very high profile target, they should already be on top of these cybersecurity protocols while partnering with third-party service providers to help put a stop to data breaches.
How ComplyGenics Can Help
Many Fintech companies do not have the resources at hand to properly navigate an environment of increasingly complex regulations and compliance measures. ComplyGenics is here to help. We provide such services as compliance audit and program remediation, AML rule tuning, and model validation, helping you mitigate risks and keep up with the best industry KYC and AML standards. We also specialize in staffing for the niche, helping you connect the right talent for your firm within the industry. For more information, visit our site or contact us.