Cybersecurity and banking have been a topic of utmost importance for years, ever since the banking sector started to transfer to the digital world. Cybersecurity and its threat to the banking industry have become a big problem for everyone.
In the past, transactions were handwritten and calculated without the aid of computers. Back then, banks were also attacked by thieves, and physical theft of money posed a considerable threat.
Nowadays, due to enormous stores of money in banks and clients’ personal data (personally identifiable information (PII)) and the increase of individuals and companies performing their transactions online, financial institutions such as banks have become the prime target of hackers.
Therefore, banks need to pay special attention to cybersecurity and protect themselves and their clients from cyber attackers.
Importance of cybersecurity in financial services
First, there is no doubt that cybersecurity in banks, in the digital age, is of absolute importance. It is necessary because banks are based on credibility and trust and losing that due to cyberattacks can be extremely harmful to the business.
We have put a list of reasons why cybersecurity matters in the banking sector:
- Everyone is going cashless – because almost everyone has started using digital money, like debit and credit cards, banks need to ensure that all cybersecurity measures are in place and protecting the customers and the bank itself.
- The loss of trust – data breaches can make it exceptionally difficult to trust banks. Having a weak cybersecurity system can cause clients to move their money to other financial institutions.
- The loss of money and time – if a data breach occurs, customers lose their money and time. Recovering everything stolen can be unbelievably time-consuming. The entire process may involve verifying bank statements, canceling your cards and being vigilant for any other complications.
- The loss of clients’ sensitive data – when one realizes that their data has been stolen, it is hard not to be worried whether your personal information would be used against you again.
It is time for a change
No one can be certain and say hackers will not attack them. Most of the banks have specific security measures, but they are not always as safe as they believed. Banks need to elevate their anticipatory cybersecurity because hackers are continually finding ways to outsmart everyone.
It is essential to find ways to pre-solve hacking problems rather than wait for them to happen and then try to resolve them.
Enhance protection applications
Due to constant data breaches happening in the world, each bank should consider enhancing or completely replacing specific protection applications. Some of the things that banks need to investigate are:
- Security audit – an audit is quintessential before a bank decides to implement new security software. This way, you will see the strengths and weaknesses of the existing setup and know what to invest in.
- Firewalls – firewalls are essential in safeguarding your clients’ data because they can block malicious activity before they reach other parts of the network.
- Multi-factor authentication – this protection is beneficial for customers who use mobile or online apps to do their banking. Using this method can minimize the chance of unauthorized access to your bank account.
- Anti-virus and anti-malware applications – firewalls will not stop attacks unless anti-virus and anti-malware applications are updated too.
- Biometrics – this type of authentication relies on retina scans, thumbprints, or facial recognition to confirm a user’s identity.
- Automatic logout – automatic logout minimizes obtaining one’s records because access to an app closes after a few minutes of inactivity.
When hacking repeatedly happens in any industry, customers become unsatisfied, believing that they and their personal information are not valued. Continual risk assessments are mandatory for all the banks and providing the best security software and strategies to the customers is essential. This is why the topic of cybersecurity and banking is of extreme importance to us at Prudential Bank. We are continually working on enhancing security measures and providing the best and the most secure services to our clients.