Why Cybersecurity is Important for Banks

Are you worried about the security of your bank account? Do you always think twice before using online banking or mobile banking apps?

It’s okay to be concerned about the safety of your information and funds deposited at your bank. That’s exactly where the importance of cybersecurity for a bank comes in.

Cybersecurity is important for banks to protect customer data and sensitive information. Strong cybersecurity strategies also help banks secure funds and prevent financial losses. Additionally, cybersecurity allows banks to prevent and react to hacks, unauthorized access, data breaches, and other online threats.

A bank cannot expect to provide services without reliable cybersecurity measures. Read on to learn the exact factors that make protection against online threats and vulnerabilities a must for banks.

Why is Cybersecurity Important for Banks?

Many small and medium businesses focus on improving their cybersecurity, but what about banks? They deal with a range of sensitive information like customer and investor data.

Cybercrime is a big headache for banks, especially now, when everything has turned digital. Someone hacking into a bank’s system could get free access to the funds or collect sensitive information at will. As a result, cybersecurity is essential for banks to protect customers, funds, and information.

Here is a list of reasons why cybersecurity is important and scores high on any bank’s list of priority:

Cybersecurity Can Protect Sensitive Data.

Data breaches have long been a potential threat to any business in the financial sector. A data breach happens when someone gains access to private information without permission. A hacker can break into the servers of a bank and can copy, delete, or use information in any way they want.

Recently, a Singapore cybersecurity company discovered a data breach that involved 1.3 million credit and debit card information. Preventing a data breach through resilient cyber security services and strategies is necessary to protect customers, data, and funds.

Cybersecurity Can Protect the Bank’s Digital Resources and Assets.

Banks have now moved to automation and use computers and software to provide services. Any computer, network, software, or digital resource connected to the internet can be vulnerable to cybercrime.

Hackers, phishing, ransomware, malware- the list of threats are almost endless.

Proper cybersecurity services, security, and protocols provide safety for hardware, software, and digital assets used by the banks. Financial services cybersecurity can also protect end customers and their devices to a certain extent, as many use mobile banking apps.

Cybersecurity Can Prevent Financial Loss.

Banks are responsible for the safekeeping of funds deposited by customers. However, hackers can use a range of ways to compromise a bank’s security protocols and steal sensitive information. Morocco’s CIH Bank experienced an incident in 2020, where hackers lured customers to compromise their credit card details, resulting in the theft of funds.

Banks use strong security measures to prevent hacks and unauthorized access. These efforts add up to protect the funds in customer accounts and also prevent loss for the business.

Cybersecurity is Required for Compliance.

Banks, or any financial institution, have to comply with state and national laws. All countries now have strict standards that banks need to follow to protect customer data and funds. Many of these regulations are related to the digital aspects of doing business and handling private data.

A bank cannot ensure compliance with laws for preventing cybercrime without cybersecurity. So, it is also a legal requirement for banks to focus on financial cybersecurity.

How do Banks Protect Against Cybercrime?

Banks use a range of measures to protect customers, funds, data, and assets. The exact list of security protocols varies based on institutions, but here are the most common ones:

  • Firewalls to prevent hacks and unauthorized access
  • Antivirus, anti-malware, anti-ransomware, and similar applications to protect systems and data
  • Multi-factor authentication like OTPs for banking apps and websites
  • Secure login methods like virtual keyboards for more safety
  • Strong encryption to protect customer data and information
  • Automatic sign out from apps and websites to prevent unauthorized access
  • Instant notification to customers in case of any suspicious activity
  • 24/7 monitoring of networks and systems to identify threats

Banks also conduct regular security audits to find out any gaps in their cybersecurity measures. They use the findings of the audits to create a stronger defense against cybercrime.

Additionally, banks update their applications and systems with the latest security patches to secure clients, information, and funds.

Can Anyone Access My Banking Account Details?

Your bank has the right to access your account without your permission. However, you have nothing to worry about as the bank staff will not engage in any damaging activities.

Apart from your bank, no one is supposed to have access to your account unless you share your login details.

Banks use cybersecurity for financial institution protocols to ensure no one can easily break into your account. Multi-factor authentication, automatic timeouts, and virtual keyboards are examples of checks to prevent unauthorized access.

Customers also share the responsibility to keep their accounts safe. We will discuss what you need to do to protect your bank account in the next question.

How can Customers Improve Online Banking Security?

Customers play a big part in preventing cybercrimes through awareness and best practices. You should keep updated about the latest threats to the banking industry and techniques criminals use to compromise funds or data.

Additionally, focus on the following:

  • Create a strong password that contains numbers, unique characters, and a mix of upper-case and lower-case alphabets.
  • Change your passwords frequently and never write them down on paper.
  • Activate multi-factor authentication for your banking app and website login. You will need a PIN or OTP sent to your mobile or email to access your account.
  • Try not to use public Wi-Fi to do your online banking. Use a VPN if you have no choice but to use public Wi-Fi.
  • Update your banking app as soon as it is released to protect from the latest threats.
  • Never open emails that seem to come from your bank but look suspicious. Additionally, don’t click on links in emails from sources you don’t trust.
  • Never disclose your passwords, credit card PINs, or any secret data to anyone. No bank ever asks for such information over the phone or email.
  • Install a quality antivirus in your computer that you use to access online banking. You can also install an antivirus for your mobile to safeguard your banking app and transactions.

Can Someone Hack My Bank Account with My Name?

Generally, it is not possible to hack your bank account with just your name. Most banks have dedicated user IDs for their customers used for logging in to online banking apps or websites. So, a hacker will need more information than your name to get into your account.

A brute-force attack is a technique a hacker can use to violate your account. Here, the hacker tries several combinations of passwords and usernames to get access.

However, not all brute-force attacks are successful. A hacker is more likely to break into your account if they have other personal information about you.

As a result, a good practice is to use passwords or usernames that don’t have a personal connection to you or your life. It will be very difficult to guess the actual combination of your password with zero information.

Final Thoughts

Cybersecurity is essential for banks to protect sensitive information, funds, and digital assets. It also helps financial institutions to prevent hacks, attacks, and any unauthorized access.

Moreover, cybersecurity allows banks to avoid financial losses and comply with laws and regulations. Every bank in the world now relies on cybersecurity to provide secure services.

 

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