Cybersecurity in Digital Banking

Nowadays with the increase in digitalization, the dangers of cyber security have also increased a lot. As the world is increasingly becoming digitally connected, it has also opened up entry points for cyber criminals, hence cyber security in digital banking is the need of the hour.

What is Cybersecurity?

Cyber security is the practice of protecting electronic systems such as computers and data from malicious attacks. It is also called information technology security or electronic information security. Cyber security means the body of techniques and practices designed to protect networks, devices, etc. from damage caused by the attack, any unauthorized access

Need for Cybersecurity in digital banking?

The primary purpose of Cybersecurity in digital banking is to protect the customer’s assets. As people go cashless, more and more activities or transactions are done online. People use their digital money like credit cards and debit cards for transactions that require to be protected under Cybersecurity. Cybercrimes in digital banking not only affect the customer but also affects the banks while they attempt to recover the data. The banks may require spending a considerable amount of money to recover the data or information.?Strong Cybersecurity is a must for banks as data breaches may make it tough to trust financial institutions. It may cause severe problems for banks. Cybersecurity in digital banking ensures that your sensitive data is safe and secure, which if revealed, could cause a lot of problems like fraud.

Threats for Cybersecurity in Digital Banking

• Unencrypted data: It is one of the common threats faced by the banks where the data is left unencrypted, and hackers or cybercriminals use the data right away, thereby creating severe issues for the financial institution. All data that is stored on computers in financial institutions or online must be fully encrypted. It will ensure that even if your data is stolen, cybercriminals may not be able to use them.
• Malware: End to end-user devices like computers and mobile devices are mostly used for conducting digital transactions; therefore, they must be secured. If it is compromised with malware, then it may pose a serious risk to the bank’s Cybersecurity whenever they connect with your network. Sensitive data passes through this network, and if the user device has malware installed in it without any security that malware can pose a serious threat to your bank’s network.
• Third-party services: Many banks and financial institutions use third-party services from other vendors to serve their customers better. However, if these vendors don’t have a tight Cybersecurity measure, then the bank that has employed them will suffer badly.
• Spoofing: This is one of the newest forms of cyber threats faced by banks. The cybercriminals will impersonate a banking website’s URL with a website that is similar to the original one and functions the same way and when the user enters his or her login credentials that login credentials are stolen by these criminals and used later. This cyber threat has gone to the next level where new spoofing techniques have been employed by these criminals. In this, they use a similar URL and target users who visit the correct URL.
• Phishing: Phishing means the attempt to get sensitive information such as credit card details etc. for malicious activities by disguising as a trustworthy entity in an electronic communication. Online banking phishing scams have evolved continuously. They look to be genuine and real, but they fool you into giving away your access information.

The solution to the threat to Cybersecurity in digital banking

There are certain approaches that can be followed to curb the threat to Cybersecurity in digital banking

1. Multi-factor authentication: Multi-factor authentication will make the account access more secure by sending OTP to a mobile number or requiring fingerprint authentication for easy access. Unlike two-factor authentication, a combination of username and password, multi-factor authentication is a much safer method for the customer login.

2. End-to-End Encryption: Did you know that sensitive data worth billions of euros are exchanged every year? Merchants, banks, card brands, payment gateways, and a few other parties are included in a digital transaction. Every one of them has a different role to play, making digital transactions a hotspot for cybercriminals. End-to-end data encryption is the best solution to make digital banking safer. This practice requires significant checks and tests, which takes data safety to the next level. One way to ensure end-to-end encryption is to ask for SSL chain verification. Requiring SSL chain verification is considered the best standard to provide an encrypted connection between a web server and the browser. Using the TLS protocol is also recommended to secure computer networks. Several encryption algorithms, such as RSA, Blowfish, Twofish, AES, or Triple DES, can be utilized for encryption.

3. Secure code and architecture: The customer data and financial information are not the only things that need to be encrypted; the app/web app code should also be encrypted. Avoid giving the cybercriminals a chance to clone your app to prostrate your cybersecurity.?It is always recommended to use obfuscation instruments for comprehensive mobile/web app testing. Think of yourself as a cybercriminal, and then try to infiltrate your app. This will help you find the weak spots. Also, your keys need to be managed securely. Even the most robust encryption means nothing if the keys are not easily accessible. Try to focus on the length of your key and store them in a safe environment.

4. Enable real-time alerts: It is safe to assume that the customer using mobile banking or paying via cards has direct access to their smartphone or email account in most cases. Banking institutions can leverage this assumption to send real-time alerts to the customer by notifying them of their account activity.?Some mobile banking apps allow customers to personalize their notifications, by enabling the app to trigger alerts for more than the specified amount. Real-time alerts will enable customers to identify immediately if anyone has wrongfully used their money or altered their account details.

5. Educate customers about security: The last but not the least aspect of digital banking security is ‘the customer.’ No matter how robust or secure your digital banking infrastructure is, if your customer isn’t aware of how they should safely avail of digital banking services, your efforts will be in vain.

Cybersecurity in digital banking is something that cannot be compromised. With the growth in digitalization in the banking industry, it has become more prone to attacks from cybercriminals. Therefore there needs to be foolproof Cybersecurity that doesn’t compromise the safety of customers’ and financial institutions’ data and money