In the past, banks have been relatively slow to take proactive cybersecurity measures against rising cyber threats. But as more and more attacks occur, cybersecurity in banking is improving as financial organizations realize the importance of protecting their customers’ data.
In 2019, Capital One, one of the largest credit card issuers in the United States, was the victim of a data breach that affected more than 100 million people. Capital One failed to properly protect its customer data while they moved data to the cloud; and as a result, hackers were able to gain access to sensitive information such as Social Security numbers and bank account numbers. As a penalty, they paid an $80 million fine to the U.S. bank regulator.
In order to avoid a cyberattack, it’s important for banks to have strong cybersecurity measures in place to protect their customers’ data.
Why Is Cybersecurity in Banking Important?
The banking sector is one of the most important industries in the world. It’s responsible for handling large sums of money and sensitive information. Due to the nature of the industry, it is a prime target for cybercriminals.
A cyberattack on a bank can have serious consequences. Banks can be penalized for cyberattacks, while also experiencing the loss of customer trust and confidence, financial hits, and reputational damage. In some cases, the fallout from data breaches can even threaten the stability of the financial system.
That is why cybersecurity in banking is of the utmost importance. Banks need to have strong cyber defenses to protect their customers and their assets from cybercriminals.
What Are the Biggest Cybersecurity Threats to Banks?
Cybersecurity threats to banks come in many forms. They can be external, like hackers who try to break into bank systems. Or they can be internal, like employees who accidentally leak data.
Here are some of the biggest cybersecurity threats to banks:
- Phishing Attacks: Phishing is a type of cyberattack where criminals send fake emails or texts that appear to be from a legitimate source. They often try to trick people into clicking on malicious links or downloading malware.
- Malware: Malware is a type of software that is designed to harm computers or steal data. It can be spread through phishing attacks or other means.
- Insider Threats: Insider threats are a major concern for banks. They can come from employees, contractors, or other people with access to bank systems. These insiders can accidentally leak data or deliberately misuse their access for criminal purposes.
- DDoS Attacks: DDoS attacks are a type of cyberattack that tries to make a website or server unavailable by flooding it with traffic. This can make it difficult for legitimate users to access the site or service.
- Ransomware: Ransomware is a type of malware that encrypts data and demands a ransom to decrypt it. It can be spread through phishing attacks or other means.
What Does Having Solid Cybersecurity Hygiene Look Like for a Bank?
There are many steps that banks can take to improve their cybersecurity. Here are some of the most important:
- Educate Employees: Employees should be trained on cybersecurity risks and how to spot and avoid them.
- Use Strong Authentication: Banks should use strong authentication methods, like two-factor authentication, to protect user accounts.
- Encrypt Data: Banks should encrypt sensitive data to protect it from being accessed by unauthorized people.
- Implement Security Solutions: Banks should implement security solutions, like partnering with an IT provider and getting firewalls and intrusion detection systems to protect their network.
- Monitor Activity: Banks should monitor activity on their systems and look for signs of suspicious activity.
Cybersecurity in Banking You Can Trust: Results Technology
Results Technology is a leading provider of cybersecurity solutions for the banking sector. We offer a comprehensive suite of security solutions that can help banks protect their systems and data and to meet FFIEC regulatory compliance requirements.
For more information on our cybersecurity banking solutions, contact us today.