Cybersecurity is one of the biggest concerns that banks have today. They get more digitized, and they undergo higher risks to be hacked. Large databases with information about internal operations, customer data and all the sensitive facts may be lost if they do nothing to protect this all. The consequences of a security breach may be not only the loss of reputation but also negative implications for private and corporate customers.
What are the risks of today? What will change next year? We’ve collected the top cybersecurity risks for banks in 2021, and we’ll tell you about them below.
Mobile and web banking
That’s so comfortable to install an app and control all personal accounts and operations. We can say the same about web apps. However, these applications create the right conditions for vulnerabilities that banks have to predict and avoid.
Accenture has conducted an investigation where the 30 most popular bank apps were tested. Each of them has at least one security risk, while 25% of them had a problem with high-risk security flaws. It means that there were problems with the insecure data warehouse, authentication, and code tampering.
Some reports state that the financial niche is the most vulnerable to attack. This mostly refers to web-based banking applications. All of them have at least one thing that could put all the customer’s operations at risk.
Going back and returning to cash is not the right way out. People don’t want to have tons of coins or money in their pockets. It’s convenient to have a mobile wallet and have no need even to take a card with you.
It isn’t always an easily detected cyber attack. It can look like a transaction to a wrong account or manipulations with the money transfers. Hackers look for the weak sides of the system and try to enter through it.
The tendency of using financial services from third-party providers has led to a situation where banking systems are at risk. We think it’s worth mentioning one of the most significant data breaches that happened in 2016. Hackers managed to steal $81 million from Bangladesh Bank thanks to a lack of cybersecurity in the SWIFT system.
Banks should focus on building secure and safe bundles with third-party service providers for all operations. This should be one of the main concerns in 2021.
We saw a significant breakthrough in cryptocurrencies around the globe some time ago. We could witness how one imaginary currency could raise to $18,000 worth. That was truly astonishing.
There are people who consider moving your assets to the crypto wallet is an excellent opportunity to secure them. However, there may be some risks of hacking during the exchange process. One of the most thrilling cases was a steal of 850,000 bitcoin in 2014. And another one eas in 2018 – there was a loss of about $534 million during the crypto exchange in Japan.
In the majority’s view, a bank is an unconditional synonym for security. People are convinced that there is no safer place to store money and documents. And this is true when it comes to something material. But not about what not to hide in a safe.
Information is the most valuable thing today. Today, Google, Facebook, and similar companies are far better at protecting sensitive data than banks. In large IT-companies, security is literally “built-in” inside the products themselves and is an essential component of them. At the same time, banks are still trying to build data management protection like a kind of dome over the company.
This is the main mistake of all financial organizations – they are used to separating security and IT. Besides, if a conflict arises between IT and security, it is highly likely that management will take the side of the one that is interested in launching the product as quickly as possible and reducing time to market. This is more consistent with business interests than the requirements of information security.
Before global digitalization, an information security officer was mainly responsible for the physical safety of paper money and documents. But now that the Digital component has become decisive for the financial market, the data protection requirements have changed. And now, having a strong technical background is one of the critical elements for the manager of information security.
No less important is the flexibility and ability to dialogue with the development teams and engineers. The manager harmoniously combining these skills will be able to radically change approaches to the organization of security in the company and bring it on a par with technological giants.
Fear is not only one of the most potent motivators but also an excellent tool for manipulation. Typically, a call from an information security officer is perceived as a cause for concern. Fear of losing a job for violating internal standards is ordinary in companies. Then any requirements of the security guards, as a rule, are fulfilled without any questions.
A competent manager of information security will be able to change the idea of security in the bank from a blind fear of abstract threats to a conscious desire to solve specific issues. Then, an understanding will come to the whole company that information security is an integral part of modern business and not a source of problems. The creative component in the work of the director of security should be decisive, and then his colleagues will have a desire to delve into the study of data protection issues.
The sphere of information protection, like any other, is regulated and subordinated with a number of laws. Some banks believe that compliance with established standards automatically guarantees a high level of security.
A few more words about cybersecurity
The leading causes of cyberthreats can be divided into several groups:
- lack of necessary legislation and common safety standards
- lack of funding from in banks
- lack of corporate culture regarding cybersecurity within the bank
Unified cybersecurity standards were introduced in the USA and the EU, although they are not a panacea for eliminating all types of cyber threats. However, in most cases, they demonstrate their effectiveness. Being obligated to bring internal security standards in line with the requirements, American and European banks have a reasonably effective system to counter most threats.
DICEUS is always on guard
We know how cybersecurity is crucial for all types of banks today. That’s why we help financial organizations to detect and get rid of any possible breaches in their information security area. Our team can become a reliable technology partner that will provide high-quality software development services for threat analysis, risk mitigation, data protection, and improvement of back or front office operations.