In today’s world, with technology being crucial for money, keeping computers and networks safe is vital for the banking industry. They use computers and the Internet a lot to give customers accessible services. But that also means it’s easier for scammers to try and hack in.
This guide, made by security experts from BadCredify, goes into cyber security for financial institutions. It talks about what it means and how important it is for financial institutions. It also discusses banks’ growing dangers and problems as more things move online.
Historical Perspective
Banking changed a lot over time, with technology making a big difference. But with new technology comes new threats. The banking industry needs robust cyber security to protect financial data breaches and their customers’ trust. We will look into the history of banking cybersecurity, the different types of cyber threats, important cyber security events in the banking sector, and what we’ve learned from the industry’s responses.
Youth Stage (1980s-1990s)
Cyber threats were basic at the start of using computers in banking. It was primarily simple malware and people trying to hack into systems. The main job was to guard individual systems and networks from these threats.
Internet Era (2000s)
The Internet changed banking a lot. Online banking brought in new risks. It led to something called phishing attacks. That’s when criminal cybergroups trick people into giving up their private information.
Persistent Threats Age (2010s)
Scammers got wiser, using Advanced Persistent Threats (APTs) to keep getting into banking systems. It usually involved big players like certain countries or crime groups wanting to steal large sums, ideas or spy on others.
Carbanak/Cobalt Group (2013-2018)
It is about the Carbanak and Cobalt crooks. They pulled off some bank attacks across the globe and ran off with more than a billion dollars. They did it all with clever tricks like spear-phishing and malware. It showed the need to up our game in finding and responding to threats.
Bangladesh Bank Heist (2016)
Someone tried to take about $1 billion from Bangladesh’s central bank. They found a weak spot in the bank’s systems to try to do it. Even though most of the money came back, it showed how important it is to secure the global financial chain.
Key Components of Banking Security
In the rapidly evolving landscape of technology, the banking sector increasingly relies on digital systems, making it imperative to implement robust cyber security measures. The critical components of banking security encompass a multi-faceted approach to safeguard sensitive information and maintain the integrity of financial systems. Here are five essential elements:
Endpoint Security
Endpoint security protects individual devices such as computers, laptops, tablets, and smartphones from cyber threats. In the banking sector, ensuring endpoints’ security is crucial as these devices are gateways to sensitive information.
Banks employ antivirus software, firewalls, and advanced endpoint protection solutions to detect and prevent malware, ransomware, and other malicious activities. Regular updates and patch management are essential to address vulnerabilities and strengthen endpoint security.
Network Security
Network security is vital for financial institutions to safeguard their interconnected systems and communication channels. It involves implementing firewalls, intrusion detection and prevention systems, and virtual private networks (VPNs).
Encryption is crucial in protecting data breaches during transmission over networks preventing unauthorized access. Regularly monitoring and analyzing network traffic help identify anomalies and potential cyber security breaches in real time.
Data Protection
Keeping data safe is essential for banks’ online security. Banking industry has to protect a lot of private information about their customers. It includes things like customer names, account numbers, and transaction history. Financial institutions use encryption and codes to keep data secure, whether stored or sent somewhere.
Banks also make regular copies of their data as backups. They keep backups in secure places and control who can see them. It helps protect data from theft and keeps customer information private and accurate.
Identity and Access Management
IAM is essential for controlling who can use banking programs and see banking info. IAM ensures we know who people are, what they can do, and what they do. Using more than one way to prove who you are makes things safer. It is called multi-factor authentication (MFA).
IAM protects against people accessing things they should not. It also stops people from pretending to be someone else. IAM helps make sure only the right people can see private banking details.
Incident Response and Recovery
Sometimes, bad things still happen, even when we try to stop them—a good plan to deal with problems and return to normal fast. Banks need a team ready to help fix issues.
They need steps to report and check on problems, too. And they need a plan to talk to important people. Practice and updating the plans help everyone better handle issues and cyber attacks from cybercriminal groups. It makes the financial sector stronger when problems come.
Current Threat Landscape
Banking cybersecurity is changing all the time with different computer threats. Banks have to deal with many new cyber security threats. Some significant cybersecurity threats are phishing scams, ransomware attacks, threats from people inside the financial institutions, and advanced attacks that keep them coming back. The top cyber security threats make keeping customer information safe and bank systems working well hard.
Fishing Attacks
Fishing attacks are still a big problem for the financial sector. Hackers use tricks to fool people into sharing private things like login names, credit card numbers, or ID information. Fishing attacks usually have fake emails, websites, or links that don’t tell the truth instead of finding problems with computers. The financial industry must keep improving their email security, teach customers and workers about this cyber risk, and use multiple ways to prove who they are to reduce how much these cyber attacks hurt.
Ransomware Threatens Banks
Hackers use intelligent viruses to lock essential files. The files can only be opened once the money is paid. The banking sector is a popular target because they have private customer data, and hackers can earn money. To fight ransomware, banks need good backup plans to save files. Workers also need regular cyber training. The banking sector also needs vital tools to spot and stop financial cybersecurity threats early.
Advanced Threats that Stick Around
Advanced threats that stick around are complex, long cyberattacks done by well-funded and organized criminal groups. In banking, these threats may involve constant tries to get into systems, steal private data, or mess with operations. These attacks often mix different things, including tricks to fool people, harmful programs, and never-seen-before ways to break in. the banking sector must spend money on high-level threat info, use strong network watching and finding systems, and constantly update and fix their systems to defend against threats that stick around.
Regulatory Framework
Some groups work together to make cyber security rules for banks worldwide. The Financial Stability Board (FSB), International Organization of Securities Commissions (IOSCO), and Basel Committee on Banking Supervision help make banks safer online. They make reasonable rules and tips. They also work together across countries.
Compliance Requirements for Banks
The rules banks must follow about cybersecurity are complex and constantly changing. Groups in charge often say banks must stick to specific cybersecurity rules to protect customer information, keep working well, and defend against cyber threats.
Companies must protect customer information. Rules often say how to keep data breaches safe. It includes using codes, controlling who sees it, and safe storage. Banks must make quick plans to deal with computer hacks. The plans help banks see hacks fast, fix them quickly, and reduce significant financial losses.
Government groups say banks must check their computer security regularly. These checks see how well security protects the bank and finds any weak spots. Companies may have to share information with groups like government agencies and other financial groups. It is to make all groups better at protecting themselves from cyber threats.
Best Practices for Banking Cybersecurity
Banks must keep customer info and money safe as tech changes fast. Cyber crooks grow, too, so banks must use the best security. Here are essential things banks should do:
- Employee Training and Awareness: Have regular training sessions to teach employees about the latest cybersecurity problems, social engineering tricks, and the best ways to protect data. Banks send fake phishing emails to test if employees can tell real emails from fake ones. It helps train them to be careful about emails that try to steal information.
- Promote Security Culture: It helps employees understand cybersecurity is crucial and know their part in protecting private information.
- Regular Security Audits and Assessments: Financial institutions should do scheduled security checks. It will help them find problems and weaknesses in protecting the bank’s computers and information.
- Penetration Testing: Do penetration testing to pretend to be a real cyberattacker, letting organizations find and fix security problems before attacks happen. Usually, banks check to make sure they follow the rules for payment processing and privacy. It helps keep customer info safe and secure.
- Information Sharing Networks: Banks must be part of groups that share cybersecurity information to learn about new threats and weaknesses.
Emerging Technologies in Banking Cyber Security
New tech has dramatically changed how banks protect info and guard against hacks. There are cool new ways banks keep money and accounts safe. Three big things help banks’ security the most:
Blockchain and Distributed Ledger Technology (DLT)
- Decentralized Security: Blockchain and DLT spread financial records across many computers. It makes it hard for criminals to change transactions or play with data. This built-in protection helps keep money moves and info safe from hackers.
- Smart Contracts: Smart contracts are agreements made on blockchain technology. They follow set rules and execute themselves. It makes banking processes more efficient by automating them. It also cuts down on fraud. Smart contracts ensure security protocols are always followed.
Biometrics and Multi-Factor Authentication
Scanning fingerprints, recognizing faces, and checking irises help make sure people are who they say. These make identity very secure since copying how someone looks is hard. That means fewer people who shouldn’t get in.
Multi-Factor Authentication (MFA)
MFA combines two or more authentication factors, such as something you know (password), something you have (smartphone or token), and something you are (biometric). Implementing MFA adds an extra layer of protection, making it more challenging for cybercriminals to gain unauthorized access to sensitive banking systems.
Artificial Intelligence and Machine Learning in Threat Detection
- Behavioral Analytics: AI and machine learning algorithms examine how people use websites and programs. They see what people usually do. It helps banks find strange or new things people do with their money immediately. It lets banks stop bad things from happening fast.
- Predictive analysis: AI systems can predict and guess future cybersecurity dangers based on past information and changing designs. It lets banks avoid new cybersecurity risks and weaknesses, improving their ability to do things to stop them before they happen.
- Adaptive Security: Machine learning lets cybersecurity systems change and grow as new threats appear. By constantly learning from information, these systems get better at knowing and stopping very advanced cyber attacks. It gives protection against changing dangers that keep evolving.
Bottom Line
Keeping the online part of banking safe is very important in our world with more connections. The complete guide to online security for banks has shown that cybersecurity risks come from many places, and strong protections are critical. As tech improves, how criminals attack online changes, too, so banks must be ready to change how they defend themselves before problems happen.
Banks and other financial companies must keep teaching workers to use new technology. They must make it a habit to watch for problems. Also, using intelligent machines that learn can help spot weird behavior fast and make protections stronger.
Working together within groups and with oversight groups is very important for creating and following rules for computer security that everyone agrees on. As new dangers change, we must change how we work together to protect banks from computer threats.
