Digital Economy Blog - Cybersecurity in the e-banking sector

2023-11-30 18:40:24

We live in an increasingly connected world, and with the rise of digital banking, cybercriminal attacks have also increased. Financial institutions must therefore invest massively in their cybersecurity.

Now more than ever, cybersecurity in digital banking is vital, as is knowledge of what cyberattacks are and how to protect against them.

Cybersecurity issues

Cybersecurity revolves around the protection of electronic systems and data. It is an umbrella term for a wide range of technologies and actions that protect information from the unwanted eyes of cybercriminals.

Digital business transformation can help global businesses make this change. However, online spaces like digital banking also require additional cybersecurity measures to be put in place to protect sensitive information.

Cybersecurity at the Heart of the e-banking Sector

Banks hold huge amounts of sensitive data belonging to their customers. They also have the money to pay a ransom in the event of a data leak or theft by cybercriminals. As they typically prioritize maintaining a good reputation, in many cases accepting a ransom is considered preferable to compromising customer data.

This is because data breaches can lead to several long-term problems, such as fraud against customers. Additionally, data recovery itself costs banks considerable sums of money. This is why cybersecurity is so important.

What cyber threats do online banking users face?

Substitution of payment details

When the customer clicks on the “Sign” button, a Trojan horse is activated on their computer. It changes the contact details and payment amount, while the customer still sees their payment on the screen. The money is transferred to another account.

Social engineering

A fraudster, for example, calls a bank customer from the telephone number on his bank card, posing as a bank employee and under various pretexts, obtains the password, PIN code and other important information. Customers trust the fraudster because he appears to be calling from the bank’s call center. In fact, replacing the phone number in special services costs only 85 cents.

Phishing

It is carried out by sending massive emails on behalf of banks, as well as personal messages within banking services.

SMS interception

Today, with fifteen hundred dollars and some equipment, hackers can intercept any SMS from a subscriber anywhere in the world. Push notification security is more deplorable

SIM card replacement

Using fake documents, fraudsters in Russia can obtain a SIM card registered to another person. As a result, his phone stops working and text messages are redirected to the criminals.

Remote control

Even the simplest Trojan has a function of remote control of the infected computer. Therefore, the hacker can quietly act on behalf of the accountant while he or she walks away for a tea break and leaves the signing tool (e.g., token) connected to the computer.

Strategies to Protect Banks against Cyberattacks

Banks generally have several tools to help them deal with cyberattacks.

Consumer awareness

One of the main ways criminals target banks is their customers. They prey on the naivety and ignorance of those who do not understand the dangers that exist in the digital space and who they can trick into disclosing important information.

The right apps

Banks also have a range of anti-malware and anti-virus applications across all their digital platforms.

A solid recovery plan

In this increasingly digital world, cyberattacks are becoming almost impossible to avoid. Therefore, banks need to have a good plan in place to combat cybercrime in case they cannot be stopped. This minimizes the amount of data lost and reduces interruptions to online services.

In the era of increasing digitalization, online banking has become essential, but with this development also comes an increase in attacks by cybercriminals. Financial institutions must invest heavily in cybersecurity to ensure their customers’ sensitive data is protected.

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