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Importance of Cybersecurity in the Banking Sector For 2022

importance of cybersecurity in the banking sector

For over a century, it’s the Banking Sector placed number one in terms of the most attacked sector on account of cybercrimes.

When the computer didn’t come into existence, money was looted vigorously from the banks in physical mode.

When computers, especially when the internet was adopted widely, it was from that very moment that misuse of digital technology started.

Through the Computer with the help of some malware, several Computers can be hacked in a minute. Hackers are specially trained for this kind of job.

Since, Banking is the major system where People store their Confidentiality for months and years, save and double up their funds, it is the sector where Cybersecurity is of the most importance.

People working in the banking sector now rely upon technology to initiate financial transactions, and on this account, everything can get stolen without a trace.

That is why I am trying to bring up the importance of Cybersecurity in the Banking Sector in this Article.

Firstly, this is very horrifying that the cybercriminals hack systems & computer networks within a minute compared to the Traditional system where dacoits entered Banks and looted money and everything.

That required several types of planning, but when it comes to Computer Technology, hacking and getting access illegally to confidential information have become so easy.

That is why Cybersecurity should be strengthened in the financial sector in the first place.

First, let’s understand the major issues that threaten the Banking Sector every time. So Let’s begin!

Types of Risks Involved in The Banking Sector With Regards To Cyber Crime

It is hardly possible that there will be a plain life without risks. Risks help us to learn more and plan out more clearly.

This is the reason that trained cybersecurity teams are tasked with innovating new technologies for big organizations to help protect businesses from hackers.

1. Emergence of Certain Mobile Applications

There are certain mobile applications through which customers make a purchase, and it is through these applications that they fear cyber issues occur.

Most users do not generally keep their mobile phones secured or get easily trapped by these third-party apps. As the security options remain low in the case of these devices, consequently the chances of a cybercrime increase.

You should know which mobile application is genuine and can be trusted before downloading and accessing them.

1. Data Breaches that occur on account of Third Party Involvement

Cybercriminals always look up new ways to hack systems and fulfill their goals. The Banking Systems which are new and the online technologies which are smooth in terms of transactions have paved the way toward a different outlook.

Now both the customers and the banks are dependent on online systems, and this has facilitated the hackers to use these systems intertwined with third-party systems without having any standard protocol to make these attempts successful.

If these systems are not protected with good cybersecurity measures, then cybercrime would go on increasing continuously.

3. Hacking That Occurs Through Cryptocurrency

The cryptocurrency was invented in 2009, and it is working on a decentralized platform, meaning that no banks or even any federal government in the world have any intervention in this system or authority to monitor the activities.

As a result of this, as no constitutional framework has been associated with this Platform-in recent year many crimes have occurred online on account of some hacking activities like phishing, malware systems, and planning on certain attacks.

As the cybersecurity systems mainly occur around a platform that has some Centralised authority, so till now, not a well-defined framework has been established to control the cyber crimes that occur on this platform.

Why Cybersecurity is important in the Banking Sector?

Earlier it was the fear that Banks can be looted physically, but now it is another greater fear of getting hacked within a minute.

So let’s understand why Cybersecurity is an essential factor in the Banking Sector as the economy of any country depends on it.

1. The Foremost reason is to protect the Finances

One great concern that stands out today is that hacking and emptying your bank account can occur at any point in time if you are a bit unaware.

It can suddenly happen to you that you are going to check the balance of your bank account or trying to withdraw money, and you see that your balance is almost at 0. How dangerous will that be?

Well with the help of Cybersecurity and essential security protocols, in most cases things can be saved, but if you do not have adequate cyber security measures, chances will be there that your funds will never get recovered.

Here lies the significance of Cybersecurity.

This also happens when a breach occurs in the Banks/financial firms. In that case, it takes a lot of time for the Banks to recover the money.

That is why now cybersecurity measures are established where the network itself is set up in such a way that it restricts the probability of occurrence of any breach.

2. Protecting The Confidentiality of Customers

It becomes very difficult when a customer notices a fraud that has happened with his/her bank account, as when the breach has already occurred, it becomes hard to recover the funds.

Cybercriminals work with multiple schemes and training revolving around them. As days pass and the banks gather more customers, the risk increases.

As hackers are adopting new technologies to sneak into user accounts, banks need to expand their cybersecurity capabilities to protect their systems from compromise.

3. Reputation of Banks is Associated With Cybersecurity

It is natural that when your Banking System will be the most reliable in terms of maintenance of your security, the reliability will increase, which will enhance the reputation of the bank and more customers will come to preserve their properties.

That is why regular security checkups, system enhancements, and new regulations are necessary for a bank to work successfully. This guarantees the well-being of the customers and as well as promotes financial stability.

4. Cybersecurity ensures that the Bank doesn’t get penalties

As it is understood in the case of any Authority, be it customers or any Businesses, if any data gets compromised, then the bank suffers penalties. It is the rule regarding the Banking System.

Not only does this result in loss of Customer trust, but the penalties which get issued in the name of the bank, it gets hard for them to recover. That is why all banks continuously work for maintaining cyber security within their systems.

How You Can Improve The cybersecurity in Banking Sector?

Before this section, I have mentioned in detail why is Cybersecurity important for protecting your ventures and the risks involved in Cybersecurity.

Now that these are clear, let’s ponder upon some solutions that you can have to set up Cybersecurity is a big way.

1. Educating Employees about security breaches

As we know that hackers can compromise financial systems, they can completely take over the network of weakest networks that are used for financial transactions and employees who are working in the financial system are vulnerable, and remains unaware of these issues.

The first and foremost criteria should be to ensure a strong cybersecurity protection mechanism and make your employees quite aware as to which issues they should pay attention to protect their organization from hacking.

So sufficiently organize meetings and training periodically on the issues of cybercrimes and awareness which are needed to ensure that the organization’s network runs well without any glitches.

Also, teach them that if they notice any red flag/fraudulent activity in the transactions inform the cybersecurity team immediately so that counter-measures are taken swiftly to stop the potential damage.

2. Have Regular Monitoring of software/Networking and Periodic Auditing

If you are unaware for even a moment, large security issues can occur, and everything can get stolen at the hands of the hacker.

There is another way by which you can protect your Sector, especially Banking so that no customers’ funds or anything gets compromised. That can happen through monitoring.

Even if you do not notice any fraudulent activity going on or if you feel that everything is fine with your system, it is essential that you look for the issues or leakages that can happen or any faulty measures should be eradicated if examined and found out.

You can also appoint a security audit team in your Bank to help regulate this system. Each day your network should be properly checked and should be properly set up.

3. Choose Software Solutions From Trusted Vendors

Choose a security solution that is genuine and trustable. You can have a security solution that can be disastrous if you do not check it by all means.

You have to first determine how credible is that and then begin your process of issuing Cyber security automatedly. Another request will be that do not continuously switch over from one network to another.

If you find one system to be genuine, then stay on that and do not switch over. This will reduce the chances of any malware getting installed on your setup.

A Good Security Setup is such that it screens everything and doesn’t allow anything to pass through which seems suspicious. This type of screening needs to be set up in every sector, as it is seen in Airports.

The Role of Security Score Card

As you know Bank is the supreme Organisation that helps in monitoring and preserving everything that is needed for the maintenance of a Customer’s trust, so they must maintain a good security service.

Security Score Card is one among them that helps monitor everything in a system and helps stop and track any activities involved in those interfaces. It is a trustable solution!

Some Software that will secure your system

Come let’s look forward to some software that will favor you with a guaranteed security framework.

Auditing should be done— a thorough audit should be done before you look forward to installing any cybersecurity features.

This will expose your system’s strengths to facilitate security and show you the weaknesses that you should also handle before issuing anything.

It will also provide you with the right advice regarding decision-making and help you to save money in the long run.

Firewalls — Firewalls are necessary for your banking to ensure that any malicious network doesn’t pass through the system.

Anti-virus and anti-malware applications — a firewall ensures that any blockage doesn’t penetrate through the system, anti-malware will help to facilitate the malware getting eliminated from the system.

Multi-factor authentication — is a very important factor for the banking system. The majority of the users once open an account with a password that they never change again.

In that case, if multi-factor authentication is enabled, a double protection layer is enhanced which means that it will be difficult to penetrate the system by hackers.

Biometrics — this is one version of Multi-Factor Authentication, where you can access your account through fingerprints or facial recognition.

Therefore your fingerprint or face cannot be copied, and so anyone cannot get access. Therefore this is another form of security.

Automatic logout — this is another form of security that has in case a user stays logged in to an account even when he has logged out. So many apps ask if the person prefers to be logged in at all-time or not.

If that option is disabled, then every time the user gets off the app, he will automatically log out from the system.

Education — the most important of all is Education. If people are properly educated and are aware of the threats of cybercrimes, and take important measures, then hardly can any malicious activity occur. So education is the most important factor.

Types of Cybersecurity Jobs in the Banking Sector

Let’s look over it!

Chief Information Security Manager (CISO)

The chief information security officer is an officer who is in charge of the security of the banking Institution or provides information in case of any cyber issues.

This is the chief work of the Official. This helps the bank to detect any issues around their system. The Official always sends records of every transaction and their vulnerabilities if there are any leakages.

Security Architecture

Security architecture is associated with skills in coding, more research, and the development of new skills and strategies for advancement.

They have strong communication skills with all the sectors within the Banking System and administer everything perfectly.

For more enhancement, they often distribute and educate other officials on how to regulate these systems.

Top Cyber Security Frameworks that are used in Banks

There are many solutions offered by some Government controlled regulators regarding safeguarding the Banking system.

There are certain Authoritative Bodies like FFIEC in the U.S., and the monetary authority of Singapore (MAS), which have mentioned that certain regulations should be followed by banks to maintain cyber security and confidentiality of customers.