Cybersecurity in Banking
As technology advances and more people come online, it is becoming increasingly important for banks and information technology departments to work together to secure cyberdefense for their institutions. While the Internet and technology have made many things possible, it has also opened many doors for possible attackers and risk for theft. Cybersecurity in banking is something that must be addressed and taken seriously. In order to do that, certain precautions must be taken.
Banks are faced with a variety of vulnerabilities. Computer network attacks are one of the more common threats to banks. Ransomware, spam and other malware are some of the other common threats to financial services. The absence of computing skills increases susceptibility to loose data to cyberattacks, perhaps it is best to keep oneself updated with the best cyber security course. Mobile banking security isn’t the only thing on the agenda for IT departments, however. The most troubling and concerning cybercrime threats are:
DDoS attacks are among the easiest and least expensive way to shut down a company or hurt an existing business. These attacks can occur at any time, day or night. Distributed denial-of-service (DDoS) attacks are often blamed on hacktivists, when in fact they are undertaken by someone looking for a lucrative target. Hacking attempts using computers in public areas can be stopped, but only if there is a financial institution’s computer network monitoring the system. Financial institutions and banking companies should all have a network monitoring and stop services in place.
Another worrisome issue facing banks is cyber fraud. Cyber criminals have developed methods of stealing financial institution or bank account information. Criminals use various techniques to break into banks, causing chaos for the financial institution and their customers. Banks use a variety of methods to try and thwart cyber crimes such as firewalls, special software, physical security measures and fraud alerts. A good example is artificial intelligence software that banks can integrate with their security systems.
Infographic created by Donnelley Financial Solutions, a financial consolidation software provider
With banks facing increasing vulnerabilities, the need to improve their fraud prevention and protection has become urgent. One solution being considered is artificial intelligence software that banks can integrate with their networks. This software will help banks to prevent and reduce fraud by spotting unusual transactions or suspicious activity. It will also be able to monitor changes in a person’s credit files and identify new accounts. If any unusual activity is identified, it can be followed up with the concerned individual. An important feature of such an approach is that banks can be proactive in stopping any potential fraudulent activities before they turn into realities.
Since many of the largest banks have already implemented some form of cyber-security measure, including implementing encryption at all levels of their systems, the next step for the industry is to implement more sophisticated and advanced security measures. One such measure is storing all of the customers financial services data in secured servers. Currently, about 5 billion documents are stored on database servers around the world. In the next few years, companies that specialize in financial services will need to come up with a way to store this information securely.
Another problem is hacking. Hackers are constantly looking for vulnerabilities in systems, so even smaller banks will be vulnerable to intrusions. Some experts believe that future financial sectors will be targets for cyber-criminals, because many of these services are based online. Hackers can easily penetrate networked computers. A large number of US retail outlets have been hit by hackers who breach corporate networks, and if major retailers are not careful, their customers could be the next victims.
There are many other areas of concern with the vulnerabilities currently being found in most US banks. The need to secure the system is top priority. Experts agree that a combination of DDoS protection along with DDoS early-stage response is the best approach to combating cyber-attacks. In the future, specialized tools that can detect, isolate and track cyber attacks will become more common, but until then there will always be a need for companies that specialize in anomaly detection and other cyber-protection technologies.