The banking sector has been under attack for hundreds of years. First, it was the physical theft of monies. Then it was computer fraud. Today, it is not only cyber fraud but hacks into servers to obtain a customer’s personally identifiable information (PII). Hence, the reason why cyber security in banking is of utmost importance. As individuals and companies perform most transactions online, the risk of a data breach increases daily. Therefore, there’s a greater emphasis to examine the importance of cyber security in banking sector processes.
The importance of cyber security
The obvious reason for the importance of cyber security in banking sector transactions is to protect customer assets. As more people go cashless, activities are done through online checkout pages and physical credit scanners. In both situations, PII can be redirected to other locations and used for malicious activities.
Not only does this affect the customer. It also greatly harms the bank while they attempt to recover the data. When it is taken hostage, the bank might need to pay hundreds of thousands of dollars to release the information. In turn, they lose the trust of their customers and other financial institutions.
That is not the only thing that happens when steps for cyber security banking are not implemented. The customer needs to cancel all their cards and start new accounts – possibly at another bank. And though their funds are protected by the FDIC, it does not stop criminals from trying to use their PII.
• More risks from mobile apps — More individuals access their bank accounts on mobile apps. Many of these people tend to have minimal or no security, and this makes the potential of attack much greater. Hence, banking software solutions are required at the endpoint to prevent malicious activity.
• Online banking websites have made all the bank operations online, which goes through the wire, and hence subjected eavesdropping and hacking. Also, this platform enables phishing mails and platforms which causes direct bank transactions on click.
• Breaches at third-party organizations — As banks have upgraded their cyber security, hackers have turned to shared banking systems and third-party networks to gain access. If these are not as protected as the bank, the attackers can get through with ease.
• Increased risk of cryptocurrency hacks — In addition to standard funds, hacks have increased in the growing world of cryptocurrency. Since the sector is unsure how to implement cyber security software for banking in this ever-changing market, the ability for attackers to grab large amounts of this currency is greater. Especially when it quickly jumps in value.