Cybersecurity in banking is a necessity for every individual and organization in current times. Bank carries important and most private pieces of information about their client’s financial status and the cybercriminals are well aware of this fact. Because of that, it gets difficult for financial institutions to practice robust cybersecurity in banking.
As technology has evolved, so are the theft practices. There are endless no. of professional cybercriminals and thieves, who are so efficient that they directly get into the servers of these banks and financially affect them. This has created an important necessity for the banks to have prominent cybersecurity.
Importance of cybersecurity in banking
The major reason is that the banks hold the most important assets of their customers. The world is going cashless and is more devoted to using cards and e-money. And the major portion of money from the current economy is in the hold of these banks. Which is all handled through the servers. Securing all these data and transactions is important as it not only affects the banks but the customers as well. It is because it’s very easy to enter the personal data of any customer through its bank server.
These are the reasons why Cyber Security is essential for banks:
- The cyber thefts breach the bank’s policy and result in the exploitation of customer’s faith invested in these financial institutions, hampering their market value.
- If such thefts take place, banks have to take responsibility for paying back to the affected customers and has to assure to safeguard the future.
- Customers of these banks lose their money and data because of such breach and it also causes trouble to the customers in regaining what they lost.
- There are many personal details of a customer along with their money in these banks. It creates a lot of trauma on the customers if they lose their data and creates distrust for banks.
The risk in banking through web and mobile
The other area which affects the cybersecurity of banks is through web and mobile banking.
- Mobile app risk: Many individuals handle their accounts through their cell phones, being unaware of the security measures that are to be taken to keep their details safe. This makes it easier for criminals to practice cyber crimes.
- Breaches by 3rd party organizations: For the banks practising cybersecurity, hackers now use 3rd party networking to practice frauds.
How to secure the banking institutions with highly secured software:
There are evolving and improved technological defences available to strengthen cybersecurity against any kind of malicious practices. Here is a look at developing cybersecurity for banks:
- Having a regular security audit is important before enabling any new software for cybersecurity. It will disclose any loopholes present in the setup.
- Enabling recognized firewalls on the used software will block any unethical reach to the network.
- While activating the firewall, it is important to use an Anti-Malware application, as the firewall will boost protection but cannot prevent it from attacks. These attacks will be handled by the Anti-Malware application.
- Multi-factor authentication is a process to safeguard people who are practicing mobile banking, which prevents attackers from reaching the network.
- Automatic logout is another way to safeguard users. As it prevents attackers to reach the internal data in the meanwhile.
Taking all these measures will boost the cybersecurity standards for the banks and financial institutions and will keep the faith of their customers intact.