Why Cyber Security in Banking is Important?

Since the last decade, cyber attackers have especially affected businesses that depend on computerized technology for conducting their daily business. Cybercrime is a significant threat to all businesses regardless of their size. Therefore, it is important to invest in cyber security in banking for protecting your business and data against malicious cyber criminals and hackers. It is important to build cyber resilience.

Cyber security in banking is of great importance. Since 2010, Indian banks have rapidly adopted newer technologies and digital channels while keeping up with the underlying objective of increasing revenues and footprints.  83% of CISOs agree on the increase in cyber attacks on banks since 2018.

Why is Cyber Security in Banking Important?

Since 2019, several banking institutions have been targeted by cyber attackers. Some of them include: 

• OTP Bank Data Leak

Database that was dated back to 2013 consisting of the personal data of approximately 800,000 clients including names, addresses, phone numbers, approved credit limits, and work notes on client’s contracts was made publicly available. The database allegedly belonged to OTP Bank. According to the bank, there was no evidence of information leakage recorded in our bank, and the origin of this database remained unknown to the bank.

• HCF Bank Data Leak

A database consisting of the data of the HCF bank customers was available on the internet with the personal information of the bank’s 24,400 customers. The database included customers’ names, phone numbers, passport details, addresses as well as the credit limit.

• Alfa Bank Data Leak

Two databases belonging to Alfa Bank were found lying on the internet. The first database was dated back to 2014-15 and held the personal data of more than 55,000 customers. The database included customers’ names, their contact information, addresses as well as their place of work. It was speculated that these databases might have leaked in 2014 when the IT staff of the bank was going through mass layoffs.

Banks must be on their guard more than any other business since they are the custodian of money, which is the most valuable resource in the present times. In the case of a successfully deployed cyber attack, the results will be the most devastating. Since the foundation of banking lies in trust and credibility with the customers, it is very important to ensure cyber security in the banking sector.

The following are a few reasons why cyber security in banking is important and why should it matter to you.

• The wave of digitalization: These days, the government is emphasizing ongoing digital. This means an increase in the population that is using digital money such as plastic cards and is going cashless. Therefore, it becomes important to employ precautionary measures that ensure cyber security for protecting your data and privacy.
• Data breach leads to a breach of trust: Data breaches make it difficult for customers to trust financial institutions. For banks, it is a serious problem since a weak cyber security system can lead to data breaches.
• Financial Loss: When a bank suffers from a cyber attack, not only the bank but also, its customers suffer from financial loss. Recovering from this loss can be time-consuming. It will involve canceling cards, checking statements as well as confirming other minute details.
• Your data is no longer yours: cyber security is extremely important when the attackers Once the attackers get a hold of your private data; it can be misused in any manner. Your data is sensitive and could reveal a lot of information about what might be leveraged by attackers. 

How to Enhance Cyber Security in the Banking Sector?

• Bank regulators should be allowed to examine third-party vendors that many credit unions are using these days for technology services.
• Data breaches and cyber security incidents require a rapid response to mitigate the impact. Employ proactive measures to evade such cyber threats.
• With a security attack simulator and awareness tools like ThreatCop, bank employees can learn about various forms of cyber attacks. This is ensured with the help of the tool’s four-step cycle. This includes a simulated attack, knowledge imparting, and an assessment which is followed by another simulated attack.

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Pallavi Dutta

Content Marketer and Team Leader

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