As a financial institution, a bank helps people not only to save and grow their wealth but also to lend money to finance businesses that wish to expand and invest.
This basic feature of a bank helps in growing the economy. However, banking technology has witnessed a massive change with digitization which has led to several challenges. A major one being cyber security threats.
But, what defines a cyber security threat? A cyber security threat is a malicious act to damage, steal or disrupt one’s digital life by stealing their private data.
Cyber security threats can come in the form of computer viruses, a breach in data, and even denial of services.
In some instances, a cyber security threat can damage a computer entirely and there’s hardly anyone who is not challenged by it.
Still wondering why strong cybersecurity needs to be the call of the hour for banking technology?
Let’s find out!
Cyber security threats faced by banks
To begin with, it is best to understand the current cyber security threats that a bank faces daily.
With the change in the definition of banking over the years, banking technology has come up with a new set of challenges, mostly cybersecurity threats.
Here are a few grave concerns about bank cybersecurity that have users on the edge.
Risks from mobile apps
With the rise of digitization, mobile applications have become a rage. To ease customer service, banks also have come up with their mobile apps.
As easy and time-saving as it might be, banking technology faces a cyber security threat every time a customer opens the app.
With technological advancement, malpractices can take place via any malicious software already present in the mobile, or even from the lack of tight security maintained while using the app.
Hence, cyber security engineers are required to ensure a flawless user experience without the fear of data leakage.
Third-party organizations being a vulnerable target
Let’s admit we all love e-shopping, it's convenient, hassle-free, and most importantly you can shop anywhere you want without disturbances!
With the Government of India’s earlier initiative of making transactions digitals along with the spread of COVID-19, the use of digital payment apps like PayTM and GPay has increased by leaps and bounds.
Now, teaming them up together makes every e-shoppers’ life easier. However, with banks stepping up on combating cyber security threats from their end, trouble makers have resorted to pretending to be these third-party organizations to carry out their ill deeds. This is also known as spoofing.
If not strengthened, cyber security threats via third-party organizations can create a grave problem for the users and their bank details.
Continuous threat to data
The primary and most important task in cybersecurity jobs is to encrypt personal information, protecting it from cybercriminals.
Banks hold personal information of customers like their name, address, credit score, PII, and non-public personal information which if falls in the wrong hands can cause trouble for not only the customer but also affect the bank.
Not always are mischief mongers out to steal data. There are times when they just tweak or manipulate existing data.
Such cybersecurity threats are difficult to trace causing banks to incur huge losses. Hence the rising demand for cybersecurity jobs has been witnessed in recent years.
Phishing attack
Phishing is amongst the most common cyber security threats seen today.
It is a socially engineered scam, where the hacker steals user data, including credit card numbers and login credentials.
The hacker poses as an employee of the bank with alluring offers to avail which the customer requires to divulge their private data.
The recipient is then sent a malicious link, clicking which freezes their system/ allows the hackers to receive the private data.
This leads us to the next threat banking technology faces.
Ransomware attack
Ransomware attack is a form of malware that helps hackers to decode exclusive data of customers.
Following which, they seal off the customer’s access to their own data in lieu of a ransom. Hence, the name Ransomware attack.
Denial of services
To begin with, denial of services is a form of cyber security threat where hackers overload or eliminate a website or service (like e-banking) by spamming it with excessive requests.
Although in such cyber security threats, the data remains unharmed and the hackers only prevent legitimate users/ customers from accessing the site, e-banking customers can unwittingly fall prey to such attacks and even get involved in scams.
Importance of cybersecurity in banking
These cybersecurity threats challenging banking technology are a major reason why cybersecurity jobs are in demand.
Apart from these cybersecurity threats, here are a few reasons why cybersecurity is important in banking.
Safeguarding bank’s reputation
A single weak link in the cybersecurity of the banking technology can cause severe damage to the organization’s reputation.
Cybersecurity threats can cause the loss of public trust and customer insecurity.
Therefore, it becomes extremely necessary to have a strong team of an information security analyst, cyber security analyst, and other cyber security jobs.
Banks also should update their customers on ways to secure themselves against cybersecurity threats.
Preventing loss of customer's money and time
A breach in a bank’s cybersecurity can cause chaos in the lives of its customers as well as the bank.
Not only will the customers lose their personal and valuable data, but also have to undergo tiresome legal procedures to prevent any harm.
Whereas the bank will have to take up the tedious task of looking into the statements and every payment transaction, cancel the cards, and monitor closely in case the data is breached.
Keeping the customer's data secure
There have been many fraudulent cases where the personal data of innocent customers were used for crimes.
Given such instances, it is only natural for customers to be wary and scared of their lost data. In the wrong hands, it can cause havoc.
Despite the required steps, loss of data can lead to many sleepless nights for a customer.
Hence, cybersecurity is of utmost essential in banking to prevent cybersecurity threats that could make their customers vulnerable.
Banks will be penalized for non-compliance
Banks, much like every other organization have rules and regulations that they need to abide by. Ensuring a strong team to deal with cybersecurity threats is one of them.
The penalties for non-compliance are severe. In 2018, the Reserve Bank of India (RBI), fined India Bank of 10 million for failing to adhere to RBI’s cybersecurity guidelines.
There have been many more cases where the country’s central bank, RBI, had fined various banks across the country for failing to adhere to its rules and regulations.
A set compliance strategy and adherence to itensures customers of their data safety against cybersecurity threats.
Keeping data secure
With the wave of digitization in full swing, people have been using digital payment apps for online shopping, ordering food, transferring money, etc.
With more people opting for digital transactions, hackers can easily hack into banking applications to steal the personal data of customers.
Banking technology thus needs to be stringent and vigilant against cybersecurity threats. These factors have made it extremely necessary for banks to upgrade their banking technology to secure themselves as well as their customer’s data from hackers.
And, to do so more cyber security jobs are required to create a strong defense against such cyber security threats.
Wondering how to get a bank job and how to start preparing? You can read these 25+ bank interview questions to prepare and ace your next big bank interview.
If you are someone who’s intrigued by cyber security jobs, you can now learn everything you need to become a cybersecurity and also prepare for the interview accordingly.
