In today’s world, financial institutions have become dependent on information systems. The systems let them conduct business transactions like account management, transfers, withdrawals, and more. Together with this, it controls information exchange.
Aside from that, information has become the focus of cybercrime from various groups of criminals. These criminals are well-versed in using strategies like social engineering or more complicated techniques.
There are high stakes in the financial and banking industry because huge financial sums are risky and there is a danger of economic upheaval in case banks and other financial systems are targeted.
Cybersecurity and Banking
The technological arrangements, methods, and protocols called “cybersecurity” guard attacks, malware, damage, hacking, viruses, data theft, and unauthorized network, programs, devices, and data access.
Protection of the user’s assets is the main goal of cybersecurity in banking. While there are more cashless transactions and online transactions. People conduct transactions using payment methods like credit and debit cards, which are protected by cybersecurity.
Expectations of Consumers and Compliance Regulation
Financial institutions have strict expectations from consumers and regulators.
These regulators require financial institutions to meet a selection of compliance standards brought upon by cybersecurity; however, there are a lot of conflicting requirements and regulators that make it harder for financial institutions to have a clear path.
On another side note, customers need more channels, additional services, and more capabilities from online accounts to cashless payment methods together with ways to safekeeping their data. This will set financial institutions up for huge consequences if they disappoint consumers by going through a data breach, or not innovating service offerings.
Types of cybercrime affect financial institutions
1) Cyber Attacks on Software Supply Chain
A well-known method of distributing malware is to focus on a software vendor and utilise their ways of distribution to bring malicious code to the customers.
The attack cultivates the supply chain as products or updates that seem legitimate. Even if these attacks might have third-party services, it is uncommon for an attacker to put their malicious code in fake updates from main vendors.
The attacks mess up the distribution systems and allow attackers to enter the network of suppliers and continue over the systems for a long time.
Supply chain attacks can be prevented through proactiveness in educating and scanning customers on the way cyber attackers can access their personal information using those updates.
2) Phishing
Phishing attacks are one of the largest threats in banking and they are a favorite tool of cyber attackers in today’s digital world. Malicious agents create and use disguised emails to trick individuals into downloading malware or making personal information freely available, which is also called credential phishing.
Customers and employees are at risk of banking industry phishing. Attackers can send details that look like official bank correspondence to customers, and this can prove to be effective for gathering financial information illegally. Just like this, employees should be on the phishing lookout that looks for login credentials to gain customer information.
3) Risk in Third-Party Agreements
To lessen costs and comply with the regulations, a lot of financial institutions depend on partnerships.
The unfortunate thing is, your business is just as strong as the weakest partner. In case your partner is attacked, their weaknesses create pressing issues for you. Are you able to trust that your partners keep your data away from attackers?
In case you still need to do it, you should go over the third-party contracts with cybersecurity.
Who should protect data, in case any regulations should be obeyed to remain compliant?
Who is going to shoulder the blame in case something is not right?
If you do not do anything, you are risking a third-party attack that negatively affects the result and reputation.
4) Social Engineering
Phishing goes together with social engineering but they might have other objectives and social engineering also involves whaling attacks. Most of the time, customers and employees are normally the weakest link in the chain of security, and they can be tricked into giving sensitive details and credentials.
Social engineering has many forms, it could be because of phishing or whaling attacks or sending fake invoices that pretend to be a trusted source. It is important to keep employees informed regarding social engineering tactics and the way these threats are evolving.
5) New Technology Brings More Threats
The previous year brought the biggest Distributed Denial of Service (DDOS) attack through the Internet of Things (IoT). The unsecured IoT devices were attacked by hackers, bringing danger to the internet.
The evolution of IoT devices – from tablets and fitness monitors to smart home devices or personal assistance – is the odds and difficulties for every business, even financial institutions.
More people are using the internet to do their tasks, which is why cybersecurity should remain a priority.
Condition Zebra provides Cybersecurity Solutions and Cybersecurity Training for public and private SMEs in various industries, including Financial Services (Banks and insurance), Government Ministries and agencies, and Government-linked companies.
Our mission is to utilize a unique strategy of combining key technologies with expertise in Information Security and Risk Management so that clients are fully prepared to prevent and deal with cybersecurity incidents.
Condition Zebra offers:
1) Cyber Risk Management: We provide a wide range of services to identify and defend against cyber threats. Our services include Penetration Testing. Our service is a well-sought type of Cyber Security Service recognised as accredited by the Accreditation body CREST.
1) MDR, or Managed Detection and Response, is a comprehensive cybersecurity service that combines advanced threat detection, real-time incident response, and continuous monitoring to protect organisations from cyber threats.
Click here to learn more about MDR
2) Information Security Awareness Program, To implement this program successfully, it takes a team of skilled professionals who can manage and implement the Security Awareness Program. This is where the expertise of MSPs like Condition Zebra plays an important role in providing the resources and skilled professionals who can provide guidance and support throughout the program.
Click here to learn more about the Information Security Awareness Program