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7 Cybersecurity Challenges Facing the Digital Banking Industry

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With the proliferation of internet-connected devices, organizations are becoming increasingly susceptible to cyberattacks. Financial institutions, which contain sensitive personal and financial information on their customers, are particularly at risk from hackers who want to steal this data or take control of bank accounts to commit fraud.

Why Cybersecurity Matters for the Banking Industry

Cybercriminals and online attackers are constantly coming up with new ways to take advantage of customers and steal their banking information. Even small commercial organizations are at risk.

Banks are continually working to stay ahead of them by implementing new security measures that prevent this kind of fraud.

For example, digital banks use encryption technology that masks data as it passes between customers’ computers and the digital bank’s servers, making it very difficult for cybercriminals to obtain this information without the key to decrypt it, which digital banks will never share.

The banking industry has been working to fortify its cybersecurity. SSL certificates protect websites them from attacks. The Comodo Wildcard SSL Certificate is one of the most well-known SSL certificates and provides a high level of security in preventing such attacks because the banking, payment processors, financial industry must install it.

Cybersecurity in Digital Banking

  • Cybersecurity is a big concern for the banking industry. All the banks are trying to keep their customer data safe from hackers and cybercriminals.
  • The need for cybersecurity in digital banking is enormous. There are many ways in which a bank can be vulnerable to attacks. The most common way is through the bank’s website, where customers can enter their information, like credit card details and account numbers.
  • The other way in which banks are vulnerable to hacking is through ATMs and mobile banking apps on smartphones.
  • To ensure the safety of customer data, banks have been investing heavily in cybersecurity solutions like firewalls, intrusion detection systems, application firewalls, etc.

What is Cybersecurity?

Cybersecurity is the protection of digital information from theft or damage. It’s an emerging field that deals with protecting digital information from theft or damage. It is an emerging field because it has only been around for a short period of time, and new threats will likely be discovered in the future.

It’s also one of the fastest-growing industries, with a projected growth rate of 20 percent by 2020. This growth rate can be attributed to the increasing need for cybersecurity experts and a lack of qualified candidates to fill positions.

Threats for Cybersecurity in Digital Banking

We’ll examine the most significant security threats that threaten the cybersecurity of banking institutions.

1. Data theft

Before data is even encrypted, it can be exposed in other ways. For example, if a hacker someway gains access to an internal database, they could steal your username and password information. That information would give them access to your accounts, but that would be just as quickly done without SSL encryption.

A better way for banks to protect you is by using one-time passwords (OTPs) sent via SMS message or mobile app, but those do not save your transactions while they’re being processed.

2. Hacking

In recent years, we’ve seen cybercriminals target digital banks to steal valuable customer data. In response, digital banks have begun taking a number of steps to enhance security and better protect customer information.

When creating digital solid bank security, SSL encryption is often considered one of the most critical and influential techniques institutions can employ. Therefore, institutions need to know how SSL certificate can be used to increase their cyber protection and keep customers safe from hackers. Understanding how these tools work is just as important as knowing when (and when not) to use them; misusing them can do more harm than good.

3. Phishing

Although Comodo Wildcard SSL Certificate can protect your information during a financial transaction, malicious actors will do whatever they can to steal your login credentials and other sensitive data.

If you get an email saying your account has been compromised or a pop-up on your screen asking for credit card details, don’t click on it. This is a phishing attack where hackers are trying to trick you into handing over sensitive data like passwords and social security numbers. To keep phishing attempts at bay, be sure to educate yourself about how they work, and remember that if you’re not expecting an email from your bank or credit card company— don’t click on it!

4. Spoofing

Without access to specific financial data, hackers can try to trick consumers by conducting what’s known as a spoofing attack. Spoofing involves rerouting an incoming call or text message to appear to be coming from someone else — perhaps even one of your trusted contacts. Click on a malicious link in one of these messages and hackers may be able to steal your username and password or conduct some other nefarious activity using your personal information.

To help mitigate against spoofing attacks, consider activating two-factor authentication (2FA) for any of your online accounts — and always verify that an email or phone number is legitimate before you click on a link or enter any personal information.

5. Unencrypted data

data protection concept

It’s not a secret that unencrypted data is easily accessible and vulnerable to hacks, but it still exists. Encryption ensures that even if an attacker does manage to get in, all they can see is unintelligible gibberish. It makes encryption an essential tool for Cybersecurity and should be part of any organization’s security strategy. Most businesses aren’t using it yet, but they should start as soon as possible.

The digital banking industry especially needs better security because people’s sensitive financial information is involved. Even though banks already have measures in place, like anti-virus software, some attacks slip through because they focus on network-level threats instead of web application vulnerabilities. One in four consumers have had their identity stolen or have been victims of fraud at least once; more than half said they had no idea how it happened!

6. Ransomware attacks

Ransomware and Malware have been among the most prominent cyber threats of the last few years. In-depth studies by INTERPOL found that the COVID-19 pandemic triggered a 36 percent increase in malware and ransomware attacks, second only to the rise in phishing attempts. Such attacks are increasing in frequency and complexity. During the pandemic, it was reported that episodes that had not been seen before made up around 20-35 percent of the total cyber-attacks.

A few years ago, organizations were nervous about opening up to new threats like phishing emails and social engineering scams. Today, banks are dealing with a new set of cyber-risks that require IT departments to think differently than they ever have before. With a spike in data breaches occurring through malicious actors using ransomware attacks to hold critical data hostage — or worse, shut down an entire organization — IT departments must be prepared to develop a strategy against them. These tips will help you get started.

7. Remote work

As the COVID-19 pandemic is widespread, it is no longer the exception to working remotely rather than in an office. Though many institutions were moved to remote work arrangements out of necessity, it is now being chosen as an option by employees out of preference. In late 2021 indicated that 37% of respondents wanted to continue full-time remote work even after the pandemic. Another 54% said they wanted a hybrid arrangement, split between remote work and regular office hours.

To protect its employees and assets, a bank needs to consider its own best interests and take care to ensure its remote workers have a secure system that cannot be breached. With a secure connection, someone working remotely can work just as effectively from the privacy of their own home as if they were in an office.

Protect Customer Data, Protect the Business

SSL Encryption is one of a few digital banking security protocols for protecting data on today’s web. It protects user credentials and transactions in transit.

But it does not protect banks from their internal vulnerabilities, such as employee or contractor fraud or compromised third-party vendors. To provide customers completely secure and safe transaction environment, banks need to constantly test their controls and ensure they stay ahead of ever-evolving cybersecurity threats by using methods, like penetration testing and formal audits, to uncover internal vulnerabilities that could lead to external breaches.

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