Bank cybersecurity is becoming increasingly important as financial institutions face threats targeting both their internal systems and the devices customers use to access financial services. High-profile cyberattacks demonstrate that criminals can exploit vulnerabilities to steal sensitive information and potentially move substantial amounts of money through the financial system.
As customers conduct more banking transactions through smartphones and other connected devices, financial institutions must protect a growing number of potential points of attack. Maintaining secure technology infrastructure, installing current security updates, and educating customers about mobile and Wi-Fi security are becoming essential parts of protecting both banks and their customers from cybercrime.
Cyber attacks like hacking put not only sensitive information but also huge sums of money at risk. Not far from home, the hacking of the Bangladeshi central bank’s account from the Federal Reserve Bank of New York in February led to $81 million in stolen money getting laundered in Philippine casinos after entering the country through the financial system.
Banks are on their toes, and are now working to beef up online security measures to protect themselves and their customers.
“Online security is a continuing effort. Banks constantly exert efforts to update their security software and protocols. On the other hand, cyber-criminals also exert efforts to overcome bank security. So banks redouble efforts in reaction,” East West Banking Corp. president and chief executive Antonio C. Moncupa Jr. said.
Mobile Banking Creates New Cybersecurity Risks
With banking customers using their mobile devices for an increasing share of their transactions, there are more opportunities than ever for cyberattacks. This includes attacks targeting financial institutions’ IT infrastructure as well as attacks directed at mobile devices and areas with unsecured or under-secured Wi-Fi access. This is why it is so important for banks and credit unions to ensure that their IT environments are secure and have the latest security updates available. It’s also important for FIs to educate their customers and members on the importance of keeping their devices secure and updated with the latest security and operating system updates.
The expansion of digital and mobile banking gives customers greater convenience, but it also creates additional opportunities for cybercriminals. Banks and credit unions must protect not only their own technology infrastructure but also consider the security risks customers encounter when accessing accounts through mobile devices and unsecured networks.
Bank cybersecurity therefore requires an ongoing effort rather than a one-time investment. Financial institutions must continually update their systems and security protocols as new threats emerge, while helping customers understand the steps they can take to protect their devices and accounts.
Cybercriminals will continue looking for vulnerabilities, making vigilance essential on both sides of the banking relationship. By combining strong internal security practices with customer education, financial institutions can reduce potential weaknesses and provide safer access to increasingly digital banking services.
Overview by Ed O’Brien, Director, Banking Channels Advisory Service at Mercator Advisory Group
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