Finance

The Rise Of Digital Banking Brings Major Security Concerns

After the advent of the COVID-19 outbreak at the end of the first quarter of 2020, the use of the internet and mobile banking applications has soared around the world. Despite lock-down regulations severely limiting daily bank-branch operations and social-distancing measures further minimizing the potential for in-person interaction, the global coronavirus pandemic has precipitated the transition to digital. 

Does such growth imply more opportunities for cybercrime to eventuate? 

Without a doubt; since the majority of the threats target banking customers rather than institutions, digital banking—a platform that strives to allow customers greater control from inception— is susceptible to a variety of security concerns. The use of technology, like the Internet, is seen in many aspects of a bank or financial institution’s activities. A bank’s confidential information can be at risk if they do not have strong cybersecurity controls in place. But choosing the right payment gateway solution for your digital banking services helps you tackle these challenges in the right way. 

Here are five of the most serious threats to a bank’s cybersecurity:

Unencrypted Data

This is a fundamental, and critical, aspect of effective cybersecurity. Both data saved on the financial institution’s servers and online should be encrypted so that hackers will not be able to get direct access to the data. However, if unencrypted, hackers would have easy access to the data and may cause significant issues for the financial institution.

Malware

Malware-infected end-user devices, such as computers and cell phones, pose a threat to a bank’s cybersecurity any time they interface with their network. Sensitive data passes via this link, and if the end-user computer has malware installed on it, the malware may target a bank’s networks if it is not secured properly.

Services Provided By Third Parties That Are Not Always Secure

To best serve their clients, many banks and financial institutions use third-party offerings from other providers. However, if those third-party vendors do not have control systems protocols in place, banks may have to bear the brunt of the damage.

Data That Has Been Manipulated

Hackers completely alter the data they have access to. Unfortunately, this form of attack is convoluted to locate straight away and can cost financial firms millions, if not billions of dollars.

Spoofing

Spoofing is a newer form of cybersecurity attacks, in which hackers imitate a banking website’s URL with a website that appears and functions identically. When a user enters his or her login details, hackers steal them and save them for later use. Perhaps more distressing is the fact that modern spoofing mechanisms do not depend on a remarkably different but comparable URL to attack users who have already visited the correct URL.

As such, banks must have a fully secure ecosystem wherein customers can navigate their finances—an objective that appears to have yet to be attained. Thus, these ground-breaking developments come with a slew of additional privacy concerns that financial institutions must recognize if they intend to continue providing their customers with the highest quality, safest experiences imaginable.

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