Common Threats to Cybersecurity in Banking 2022

 For three years, the financial sector faced more cyberattacks than any other industry, according to a report by IBM X-Force Threat Intelligence Index. The financial sector was responsible for nearly one-fifth of all cyberattacks around that period. Furthermore, when compared to other industries, financial services also face the highest costs while dealing with the aftermath of cyberattacks.

The 2019 Accenture report on the cost of cybercrime stated that the average cost of cybercrime per company in financial services was a whopping $18.5 million - much higher than any other vertical. This is a huge financial burden for companies to bear, and it's only getting worse as cybercriminals become more sophisticated. With the right security measures in place, however, financial services companies can protect themselves from these costly attacks.

The banking sector is especially vulnerable to data breaches due to the value of the data it hosts. Hackers sell the stolen financial data and banking credentials to high bidders or use it to siphon off millions of dollars. The potential attack surface for banks has only grown in size owing to their larger digital footprint. Also, the digital transformation of this industry with mobile apps, net banking, and other online services has left this industry exposed to future attacks. While digital banking solutions have made it easier for customers to access financial services, they have also created cybersecurity vulnerabilities that hackers can exploit. It's important for banks to invest in cybersecurity measures to protect customer data and prevent attacks.

What are the biggest threats in Banking?

The key to building an effective cybersecurity plan is analyzing and identifying the top threat vectors. By identifying these vectors, security personnel can pick out the best cybersecurity investments with the highest ROI.

Malware:

The malware-as-a-service business model has allowed malicious criminals easy access to powerful malware technology. In fact, the malware was the cause of 75% of all data breaches in 2019. With newer threats, such as file-less malware attacks, it is clear that banking institutions need first-rate cybersecurity programs.

Data manipulation:

Many cybercriminals prefer to manipulate data instead of stealing it outright. This type of attack is harder to detect because the criminals change the transactional data stored in the system to appear legitimate. Even small, undetected changes can cause big problems later on. Data manipulation can also lead to non-compliance with data standards, resulting in costly regulatory fines.

Social engineering:

Social engineering attacks are a type of security breach that occurs when hackers exploit human weaknesses instead of system vulnerabilities. By constructing sophisticated phishing scams, hackers can trick high-level officials and gain access to login credentials. With these credentials, hackers can either steal important data or encrypt data to lock users out of their systems.

Third-party services:

Banks rely on third-party service providers to fulfill many of their digital banking needs, but this reliance can come at a cost. Even if the bank has its own excellent security systems in place, any vulnerabilities in third-party systems can have a knock-on effect and affect the bank. So, banks need to make sure that all their service providers are compliant with the latest industry standards in security protocols. By keeping on top of these standards, banks can minimize the risks posed by third-party service providers.

Spoofing:

Spoofing is one of the leading causes of worry for financial institutions as it's become a popular method for cybercriminals to attack. In this type of attack, criminals will create fake websites that look nearly identical to the legitimate website of the bank. Once users are redirected to the fake website, they're then asked to enter their login credentials into the fields provided - which most do without suspecting anything as the fake website looks so convincing. After the user fills in their credentials, they're then redirected to the legitimate bank website. However, by this point it's too late as the hackers now have access to everything they need and can cause major damage - both reputationally and financially - after stealing the user's credentials in this way.

Unencrypted data:

Data encryption is vital for regional and cooperative banks who are often targeted by hackers because they have fewer funds to invest in cybersecurity. Unencrypted data is easy for hackers to exploit, but if all data is encrypted, then the stolen information is useless to them. This is why it's so important for all regional and cooperative banks to encrypt their stored data.

What are the requirements of the Major step in the banking sector?

FRFIs are under the supervisory authority of the Office of the Superintendent of Financial Institutions (OSFI) and are required to ensure that their third-party vendors meet SOC2 compliance standards. In addition, the National Institute of Standards and Technology (NIST) Cybersecurity Framework helps to regulate cybersecurity and data protection protocols for financial institutions. Financial institutions must also maintain compliance with ISO 27000 and GLBA throughout. These standards work together to ensure that institutions maintain the integrity of customer data. One key step in maintaining compliance is assessing risks.

In order to build a strong cybersecurity protection system, the first step is to identify the biggest threats and possible attack modes. Penetration testing is a great way to analyze weaknesses, strengthen defences and remain compliant. Through robust pentesting, officials can close down gaps and manage their cybersecurity investments optimally. Banking and cybersecurity need to come together to build robust protocols for continued protection from cybercriminals.

At CyRAACS, we provide robust and sustainable cybersecurity solutions to organizations through our cybersecurity advisory & consulting services. We're proud to be cert-in empanelled company in Bangalore for Information Security Auditing, and we provide best-in-class security consulting services in the areas of cybersecurity, data privacy, risk management, and technology. With years of experience in the industry, our team of experts is dedicated to helping our clients overcome the challenges of today's digital landscape. Contact us today to learn more about how we can help you safeguard your business.