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Friday, July 19, 2024

Urgency of Cyber Security in Banking

  • Taher Ahmed Chowdhury

Attack in banking sector is a prehistoric issue when thieveries happened physically but cyber attack is a modern style for financial sector like banks. It is not only cyber fraud but hacks into servers to obtain a customer’s personally identifiable information (PII). So it is necessary to put emphasis on banking security.

Since more people go cashless, activities are done through online checkout pages and physical credit scanners; the auspicious reason for the importance of cyber security in banking sector transactions is to protect customer assets. In this regard, PII can be redirected to other locations and used for malicious activities. This doesn’t only mean to affect customers, but harms the bank while they attempt to recover the data also. The bank as a result might need to pay hundreds of thousands of dollars to release the information if it has taken hostage. Even the funds of a customer protected by FDIC, criminals or hackers will not stop trying to use customers’ PII.

The Risks with Banking

Currently three structured risks associated with banking on the web and a banker must know about those issues.

  • When more folks access to their bank accounts on mobile apps, many of them tend to have minimal or no security, and this makes the potential of attack much greater. So, banking software solutions are required at the endpoint to prevent malicious activity.
  • Breaches might occur through the third-party organizations. By the time banks have upgraded their cyber security, hackers have turned to share banking systems and third-party networks to gain access. If these aren’t as protected as the bank, the attackers can get through with ease.
  • Risk of cryptocurrency hacks may get increased. 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.

Need to Have Safeguard

Since attack may happen anytime and having strict security banks may not identify the theft, banks have to have a safeguard against attacks with secured software.

Security audit is must. Thorough audit is imperative before any new cyber security software is implemented. The review reveals the strengths and weaknesses of the existing setup. In addition, it provides recommendations that can help save money while also allowing for the proper investments. Since cyber security banking configuration does not only include applications. It also requires the right hardware to block attacks. While a firewall upgrade increases protection, it won’t stop attacks unless anti-virus and anti-malware applications are updated. Older software might not contain the latest rules and virus signatures. In turn, it can miss a potentially disastrous attack on your system. Besides, multifactor authentication is needed. Applying MFA can stop attackers from reaching the network because it asks for another level of protection.

If customers continue to access their information from unprotected locations or improperly protect their login credentials, customers can fall in danger. So education on security is important. When banks notify their customers of consequences related to these vulnerabilities it may move them to change their habits for fear of losing their investments.

The author is the deputy managing director of Islami Bank Limited.

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