Traditional bank robbers are being overtaken by organized cyber criminals. Online threats are among the most serious security problems in the financial industry. Banks and other financial institutions handle millions of transactions every day, with the vast majority of them handled using digital money transfer channels. As a result, banks have become appealing targets for hackers.
So, how can the banking industry remain ahead of emerging attack methods while still strengthening its cybersecurity posture? Let us investigate.
There will always be risks in life, but knowing which ones to be aware of can help you avoid them in the future. Here are the top three cyber dangers that banks should be aware of:
Hackers will constantly find new ways to compromise data. New banking services and internet technologies that enable quick transactions and account maintenance have opened up a new avenue. As banks and customers become more digitally connected, hackers are executing assaults on both common financial systems and third-party networks. Hackers can easily access the network if these systems are not adequately safeguarded by a cybersecurity plan.
As more people use mobile apps to access their bank accounts, cybersecurity threats rise. Because the majority of users do not actively safeguard their personal devices, they have little to no security protection in the case of an attack. This greatly increases the magnitude of an assault. Using a secure banking software solution is critical for preventing fraudulent activity from your mobile apps.
Cryptocurrency, which was invented in 2009, is still relatively young, and many of the decentralized currency marketplaces have not been adequately safeguarded. Several big cyber attacks of cryptocurrency exchanges and other cryptocurrency-related services have occurred during the last decade as a consequence of phishing, malware, and targeted assaults. Outside of crypto wallets and blockchain technology, the industry’s harsh fact is that there aren’t many options to embed banking cybersecurity software in crypto. Without further protection, criminals will find it simpler to steal bitcoin and benefit from market gains.
Your money should be physically protected, but it is now equally important to be protected digitally. Here are a few reasons why cybersecurity is critical in the banking industry:
Imagine going online to transfer funds from your account and discover a string of big fraudulent charges in your transaction history. In most cases, an individual’s cash may be immediately retrieved by their bank when this occurs, but this isn’t always the case with a data breach.
When a bank suffers a data breach that results in the loss of client funds, it may take some time to recoup this money. It not only harms the bank’s reputation, but it also causes significant stress for the customer. Banks must establish a cyber risk management plan to safeguard their network from all breach attempts and maintain financial security for their clients.
It is too late once a client detects fraudulent conduct. When a customer’s sensitive information is stolen or compromised, the volume at which it is dispersed might make it difficult to recover. Personal information is sold on the black market by cybercriminals to be utilized in future hacking operations and breaches. As banks increase their clientele, they must guarantee that suitable cybersecurity mechanisms are in place to secure their network and, more crucially, the personal information of their consumers.
According to Security Magazine, if a company’s information is exposed, 80 percent of consumers will stop doing business with them, and 85 percent of those people would tell others about their bad experience. A company’s reputation is crucial, especially for a bank. Good cybersecurity practices and ongoing security monitoring reflect favourably on a bank and foster confidence. This is critical in a business that is accountable for each customer’s financial well-being and personal data.
Policies and regulations like the Cybersecurity Act 2020 and Cyber and Information Security Directive are in place to safeguard customers, and if these rules are breached or ignored, banks risk severe consequences for noncompliance. These penalties can be difficult to recoup from and may cause prospective clients to mistrust the integrity of their bank. If a bank falls victim to cyber attacks as a result of noncompliance, a succession of setbacks is probable.
Solutions for Enhancing Your Cybersecurity Efforts
Now that we’ve established the dangers of weak cybersecurity and the significance of a robust cyber posture, let’s look at how you can effectively safeguard your financial institution against cybercrime attempts.
Your company is only as strong as its weakest link. The key to preventing threats and vulnerabilities is to make your personnel aware of all potential risks and weaknesses. Ensure that staff understand how to guard against various pervasive risks, what breach methods to be on the lookout for, what to do in the event of a breach, and how to appropriately secure private customer data. Anyone in a company can become a victim of cyber crime if they are not properly taught. Staff should be educated, continuous cybersecurity awareness training should be scheduled, and employees should be empowered to take action if they detect fraudulent conduct.
Minor flaws are frequently used as entry points for various cyber assaults. However, continually monitoring network traffic and conducting frequent cybersecurity audits to look for misconfigured systems, missing security rules, obsolete extensions, or development defects can assist in identifying these vulnerabilities.
Audits can also assist in determining whether or not your network’s security system is sluggish or slow. This can help you determine which components of your network need to be upgraded in order to remain ahead of potential cyber intrusions.
Global Secure Solutions offers various cybersecurity services that can help protect your organization from cyber attacks. Financial companies are constantly attacked by cyber criminals, making cybersecurity awareness training important for employees to learn. Our managed end-user security defense training platform, can assist you in protecting your employees from phishing attacks. The solution helps your employees by offering engaging training videos that teach them about various cybersecurity topics like phishing emails. We also generate phishing emails and send them to your employees to test them on what they have learned from the training. If you are interested in our managed end-user security defense training services, get in touch with us now!
Another service that we offer is Prometheus SHIELD, a managed IT services platform. Prometheus SHIELD protects clients’ endpoints by assessing, prioritizing, and patching critical vulnerabilities in real time to reduce their attack surface. Our service also includes disaster recovery, which restores a company’s data and infrastructure when a disaster strikes and minimizes downtime and data loss. To learn more and request a demo click the link! .
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