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Financial and banking sectors present immense stakes; significant sums can be at stake, and economic calamity may ensue if financial systems and banks become compromised, prompting an ever-increasing need for cybersecurity professionals to defend these critical institutions against threats to national and economic security.
With cybersecurity becoming more prominent daily in financial organizations worldwide, demand is surging. Check out the top Security Certifications below.
Cybersecurity threats continue to evolve at an astounding pace, making financial and banking sectors particularly susceptible to compromises that financially put millions on the line and have severe economic effects if banks or financial systems become compromised.
Banks should make cybersecurity education and communication tools like Desk their top priority to reduce noise on the internet and get their important messages across to employees quickly and effectively.
Cybersecurity In Banking
Cybersecurity refers to an array of protocols and technologies designed to protect against cyber-attacks, malicious software, viruses, hackers, data theft or unauthorized access to devices, networks or programs.
Cybersecurity in banking primarily refers to protecting users' assets. With an increasing shift towards cashless payment methods such as debit or credit cards, cybersecurity also needs to protect digital payment mechanisms.
Banks Need To Be Aware Of Cyber Security
Cybersecurity in banking is of high priority, especially given that banking relies upon building credibility and trust between clients and institutions.
Five factors demonstrate the crucial importance of cybersecurity for banking operations:
- People want to go cashless and use digital payment methods such as debit or credit cards. It is essential to ensure that all the necessary cybersecurity measures are taken to protect your privacy and data.
- It could become difficult to trust the financial sector after data breaches. This is a significant issue for the banks. A cyber solution can easily cause data breaches, which could lead their customer base to move their business somewhere else.
- When a bank's data is compromised, it is often accompanied by monetary and time losses. The recovery process can be time-consuming and unpleasant. This would involve canceling cards, reviewing statements and being on the lookout for any issues.
- Misuse of private data can be extremely harmful. Even if your cards have been revoked or fraud has been quickly dealt with, the sensitive data you hold could still be used against you.
- The banks need to be more cautious than other companies. It is a price that banks pay to keep such valuable data. Information from the bank could be compromised if it isn't protected against cyber crimes.
Banks Are Facing The Top Cyber-Threats
Recent years have witnessed an alarmingly increasing rate of cybercrimes. They now pose one of the greatest threats to financial industry security; hackers have become more sophisticated, so stopping attacks consistently may become impossible.
Here are some threats affecting bank cybersecurity:
Phishing Attacks
Phishing attacks represent one of the significant cybersecurity risks to banking institutions today. By exploiting vulnerabilities within computer networks, these attacks allow attackers to gain entry and launch more severe threats, such as APT (Advanced persistent threat), that could cause irreparable harm.
APT allows unauthorized users to gain entry to systems for extended periods, leading to significant financial losses, data theft or reputational harm; our survey revealed this trend peaked during Q1 2023.
Trojans
Hackers use "Trojan" as an umbrella term to refer to various harmful tactics they employ to gain entry to secure information.
Banker Trojans appear as trusted software until installed; once inside, they become malicious applications explicitly created to gain entry to private banking data stored or processed online. Their backdoor access gives hackers entry from outside.
In the first three months of 2023, approximately 54,000 trojans for mobile banking were deployed around the globe - an increase of 53% compared to the same quarter last year and up from an initial decline seen during the first three months of 2026.
Ransomware
Ransomware is an Internet threat which encrypts data to block its owner from accessing it until an exorbitant fee has been paid or until an agreed-upon ransom has been met.
Ransomware poses a particular danger for banks: 9 out of every ten banks have experienced some form of ransomware infiltration within the last year alone.
Ransomware poses a grave danger not only to financial services and cryptocurrency but also to cryptocurrency trading systems themselves, offering fraudsters an easy avenue to access trading systems to steal funds.
Ransomware has become an increasing threat to many organizations worldwide for several years. It does not appear to decrease anytime soon.
Cybercriminals exploit ransomware attacks to lock users out and encrypt files before demanding payment from victims in exchange for unlocking their systems.
An organization exposed to ransomware attacks risks having its system crippled for an extended period, especially without backups.
Paying ransoms does not ensure your system will be restored immediately; only time can tell whether this option will restore operations successfully.
Sporing
In this cyberattack, hackers use a copy site. They pose as financial websites:
- Create a layout similar to the original in terms of both functionality and appearance.
- Create a domain by slightly changing the spelling of the domain or extension.
Users may access this duplicate website via third-party services such as email and text, while hackers could gain entry when no one is paying attention; multi factor authentication provides one effective solution to such threats.
Remote Work: Risks That Continue To Exist
Remote working, hybrid workforces and cloud-based systems have become nearly widespread during this pandemic, leaving financial institutions more exposed than ever to cyber attacks than before.
Furthermore, employees may no longer consistently access data managed by organizations; therefore, extra precautionary steps may be needed for security.
Cyberattacks Based On Cloud Computing Are Increasing
Cybercriminals have taken note of this trend as more data and software are stored online, creating cloud-based cyber attacks as one of the top cyber threats facing banks today.
To guard themselves against costly breaches and mitigate risk appropriately, banks must ensure their cloud infrastructure has been configured securely.
Social Engineering
Social engineering has emerged as an emerging threat against banking and finance institutions. Individuals represent one of the weakest links in any security chain.
They can easily be coaxed into providing sensitive data that compromises bank employees' and customers' security.
Social engineering attacks come in all shapes and forms - whether through phishing emails or fake invoices from seemingly trustworthy sources - so keep your employees aware of social engineering techniques and threats they present.
Attacks On The Supply Chain
Cybercriminals have increasingly utilized software vendor contracts as an entryway into spreading malware. Cybercriminals then target these vendors' customers with products and updates containing malicious code that appears legitimate; their attacks aim to compromise distribution systems to gain entry to customers of those suppliers, giving cybercriminals direct access to networks belonging to those customers.
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Examples Of Cyber Attacks On Banks
Over the last several years financial institutions and banks have experienced multiple cyber attacks over the last several years that pose an increasingly severe threat.
Cybersecurity issues are an ever-growing concern:
- In 2023, hackers launched ransomware on Flagstar Bank (USA) by posting the personal information of bank customers on the internet to extract money.
- A DDoS attack on a provider of telecommunications networks in New Zealand forced the New Zealand Stock Exchange to close its doors by 2023.
- Cybercriminals accessed the personal data of 7,000,000 customers on Robinhood's online trading platform in 2023.
Cybersecurity Applications In Banking
Banking industry organizations must protect themselves against an ever-evolving cyber threat landscape, with new security measures often undermining more recent attacks or being compromised by new ones.
When new security measures appear to threaten more recent ones, hackers often adapt by creating tools or strategies which compromise it even further - thus leaving your data and systems exposed and vulnerable. It is, therefore, crucial for financial cybersecurity to employ various approaches and tools aimed at safeguarding its protection.
Here are some essential cybersecurity tools.
Network Security Surveillance
Network monitoring involves constantly scanning a network to detect any intrusive or dangerous activity, using software in combination with security tools like firewalls, anti-virus protection and IDS systems (Intrusion Detection Systems).
Monitoring can either be automated or manual, depending on user preference.
Software Security
Application security software offers protection for applications essential to business. Among its many features is one which permits listing and code signing applications and multi factor authorization policies to synchronize them together and increase overall software protection.
AI will further strengthen software protection.
Risk Management
Financial cyber-security includes risk evaluation and reduction through risk evaluation and prevention measures and data protection.
Security training on cybersecurity awareness programs also occurs, and data storage issues must be considered when creating cybersecurity systems.
Protecting Critical Systems
Wide-area networks help prevent attacks against large systems by adhering to industry safety standards when taking steps to secure devices.
The software continuously checks all applications and runs security tests on users, servers and networks to keep everyone secure.
What Can Be Done To Make Banking Institutions Cyber-Secure?
Security ratings demonstrate that you're serious about cybersecurity in your organization. Your IT practices must adhere to industry regulations, with long-term business decisions informed by this knowledge.
Creating a cybersecurity framework could prove to be useful; for enhancing skills further, taking Ethical Hacking classes.
Cybersecurity Frameworks For Banks
Cybersecurity frameworks are standards and language used by security leaders from different nations to comprehend better their security posture, both themselves and any vendors they work with.
A framework helps your company identify procedures and processes needed for monitoring and mitigating cybersecurity risks more easily; take a look below at some common frameworks used for financial cybersecurity.
NIST Cybersecurity Framework
Improving Cybersecurity for Critical Infrastructure was issued as an Executive Order under former President Obama to bring together the public and private sectors to recognize, analyze and manage cyber risks.
To meet this request, NIST developed its Cybersecurity Framework, which has become the industry standard in measuring cybersecurity maturity levels, detecting weaknesses, and complying with optional cybersecurity legislation.
Cybersecurity Challenges For Banking
Banks and other financial institutions can still take measures to guard themselves against common cyber threats found within the sector.
They include:
- To overcome the talent shortage, partner with organizations offering security services and other partners to provide better protection.
- To avoid the worst cyber-attacks, it is essential to implement continuous training in security awareness or to assess current programs.
- Purchase detection and response equipment that will help you to prevent attacks and be proactive.
- Conducting consumer education programs ensures consumers do not disclose their sensitive information to cybercriminals.
Communication Is Important
Communication plays a central role in helping financial institutions. Banks prevent cyber incidents and raise awareness regarding cybersecurity threats, so developing appropriate internal communication strategies that inform employees about protecting data, reporting cybersecurity mitigation strategies breaches immediately and remaining up-to-date with threats is imperative for maintaining cybersecurity protections and awareness programs.
Internal financial communication can help achieve this objective in various ways, including:
- Use corporate screensavers and wallpapers to remind staff about security concerns.
- Regularly quiz your employees on their knowledge of cybersecurity in banking.
- Inform employees about new threats to ensure they are vigilant.
- Refrain from overloading with information.
- You can reinforce your message by using a range of communication channels.
Plan to address potential cyber security threats in the future. Banks will always face new cybersecurity hurdles; by setting down solid foundations now, banks will be prepared for future cyber threats.
Implementing cybersecurity mitigation strategies in the banking industry can be challenging. What are some of the major cyber security obstacles facing banks today that must be met head-on?
- There is a cybersecurity talent shortage when the demand for qualified professionals far exceeds the supply.
- Employees must be aware of cybersecurity risks, or training needs to be updated.
- Inadequate budgets to combat cyber threats.
- Employees using weak credentials make it easier for hackers.
- Those who want to use mobile devices and banking apps are targeting them.
Various challenges have compounded cybersecurity issues within the banking sector; here are just a few.
Insufficient Knowledge
Businesses need to invest in cybersecurity awareness training.
The Budgets Are Too Small, And The Management Is Poor
Identity and Access Management has long been at the core of cybersecurity efforts, especially now that hackers can enter business networks with just one compromised password.
While progress has been made here, more work must be completed before proper cybersecurity can be realized.
Identity And Access Could Be Better Managed
Identity and Access Management has long been at the core of cybersecurity efforts, especially now that hackers can enter business networks with just one compromised password.
While progress has been made here, more work must be completed before proper cybersecurity can be realized.
Ransomware Is On The Rise
Ransomware has emerged as an increasing problem due to recent computer attacks. Cybercriminals use various tactics to bypass endpoint protection software designed for executable files that detect such threats.
Smartphones And Apps
Most banks conduct their transactions using mobile phones, creating an increasingly attractive target for hackers who exploit this use of mobile transactions as part of their attacks on financial institutions.
Accordingly, more criminals have begun targeting these mobile transactions than before due to increased banking transactions using them.
Social Media
Social media has increased the incidence of hackers. Uninformed customers unwittingly expose personal information, which is then exploited by cybercriminals for illicit gain.
Read More: What Is Cyber Security? Its Important & Common Myths
A Career In Cybersecurity For The Banking Sector: Prospects
Comparatively, cybersecurity offers more job stability than many other professions. According to CIS, employment of information security specialists should increase by 33% by 2030 - demand has also skyrocketed within banking services for cyber security jobs requiring professionals in this sector.
Cyber security demands the following skillset:
Learn To Solve Problems
Problem-solving skills will play an instrumental role in your work. Information security issues require innovative solutions; those working in this area often rely on them.
Technical Skills
Cybersecurity is an emerging technology field; your duties may involve diagnosing, updating and maintaining information security systems and continuous network monitoring with real-time solutions for real-time issues.
Digital competence will likely be needed for successful operation as an IT security specialist.
Communication Skills
As a professional in cybersecurity, you will work closely with members from other departments. Therefore it is imperative that you can effectively communicate any concerns, discoveries and solutions clearly to all those involved in each department - this also goes for when discussing policy or strategy; explaining technical concepts so they are understandable by people with varied knowledge bases can also.
Cybersecurity Trends: It Is Essential To Be Aware
It would be best if you were on the lookout for cybersecurity threats for several reasons:
- More financial transactions are now digital than ever due to the increase in cashless transactions.
- Customers can be compromised by a lack of cybersecurity within the banking industry.
- Costs and time can add up when recovering from an incident.
Financial institutions in the US must remain aware of potential cyber security threats, following reforms implemented last year by their federal regulator, with any incident that threatens the viability or the provision of services and products reported immediately.
Reporting will become mandatory for events or actions which could threaten to undermine US financial sectors, including cyber security risks such as ransomware and DDoS attacks affecting banking.
Similar regulations will also be put into place by the UK, Europe and Australia. According to research, eight of 10 bank executives and board members have stated their bank increased its technology budget for 2023 to invest more heavily in cyber security measures.
Three Cs For Best Security In Banking
What are the three Cs, and why should your company's security strategy incorporate them?
Comprehensive
As attack vectors expand in complexity, companies must ensure their security measures cover everything from IoT devices and email to cloud networks and desktop computers.
A breach in critical infrastructure could occur if any vector were left vulnerable - similar to Pipeline where similar vector attacks occurred; to stop an attack, a comprehensive solution covering all vectors must be put in place.
Consolidated
Cyberattacks of today are highly complex and spread rapidly through various vectors. As businesses attempt to ward off cyber attacks with multiple-point solutions that often duplicate effort or create siloed communication lines between systems - according to CIS and, 49% of businesses use 6-40 point products.
In comparison, 98% manage security through multiple consoles creating blind spots within security measures.
Recent years have witnessed an evolving approach to security. According to research, in 2023, 75% of companies would pursue security vendor consolidation compared to 29% in 2028.
66% believed this strategy would enhance risk management. Organizations can enhance security by adopting an architectural approach with increased coordination and efficiency that consolidates multiple solutions under a consolidated roof; they may even save money thanks to the decreased operational overhead associated with managing multiple siloed solutions simultaneously.
Collaboration
Implementation of a collaborative strategy could make all the difference in success or failure. When an attacker targets an endpoint, for example, all security technologies--cloud services, email servers and networks alike--must respond immediately to stop an attack and block its progression.
To achieve this, the comprehensive and consolidated architecture must ensure that each security engine provides adequate protection from every possible attack vector.
Real-time intelligence collected by enforcement points, research teams, third-party sources and any other means must also be disseminated across all environments immediately to enable timely actions.
Our API-based solution seamlessly integrates into other systems to provide accurate information.
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Conclusion
Cyber security should be of primary concern in every organization; banks, in particular, must put measures and solutions in place to protect large quantities of personal and transaction data stored at their institutions.
With digitalization's rapid advancements, hackers are more likely to target banking.
CIS offers hundreds of courses on Data Science, Machine Learning and Cybersecurity, as well as Full Stack Development and Process Certifications.
Their top Cybersecurity Certifications can help expand your cybersecurity knowledge while giving the necessary training for certification success.
Cybersecurity Software Technologies was established on the principle that prevention in cybersecurity is more effective than remediation; this vision remains relevant today as companies face fifth-generation attacks from all directions, forcing them to adopt preventative approaches.
