HomeCybersecurityLatest Banking Cybersecurity Trends to...

Latest Banking Cybersecurity Trends to Keep Watch In

Banking Cybersecurity Trends: While the rise of cybercrime in 2020-2021 has been widely documented, did you know how much of the challenge is directed at the financial sector? Over the last 12 months, 80% of financial companies have registered an uptick in cyberattacks, a stunning 13% increase from 2019. The increase was 238% between February and April. One thing is sure: this is a wake-up call for banks.

Five key factors that have led to the increase in cybercrime are described below. What are the attack trends to look out for in 2021, and how can the banking sector develop its intelligence to cope with the increased risk?

The Biggest Banking Cybersecurity Trends

1. Increased Fraud and Identity Theft

One of the main contributors to the rise in banking-related cybercrime this year was a 60% spike in fraud. According to the most recent Financial Crime Survey, card cloning is the most significant issue, with a 34% rise in 2020 alone.

Attackers can steal physical card data even more efficiently with linked devices thanks to advanced cyberattacks. Point-of-sale systems or credit card readers are new attack vectors that can provide access to stolen EMV data. This is then used to steal financial data or money from consumers, but it will be successful only when banks refuse to check the CVV. Unfortunately, studies have revealed that this security flaw could affect more than one-third of banks.

It’s also worth noting that, after COVID-19, the cost of each fraudulent transaction has risen. The value of each attempted fraud attempt was 5.5% higher in 2019 than the previous year’s results. Banks must understand that attackers are becoming more brazen in their tactics, believing that they can operate under the radar of bank employees unaware of their illegal activities.

2, The Change to Online Spending and Communications at a Breakneck Pace

As a result of the pandemic, more people are shopping online than ever before, and banking workers must review transactions through a different lens. “Recent estimates show that over 80% of credit cards actually in people’s wallets have already been compromised,” says Markus Bergthaler, Director of the Merchant Risk Council. Employees need in-depth training to spot the difference between what appeared odd last year and a lock-down impulse buy this year.

A rise in activity from High-risk Merchant Category code industries is another noteworthy development. Transportation, telecommunications, file sharing, and the cloud are the sectors with the most significant risk of fraud and disputes. When you consider the rise in communications and transactions in these areas by 2020, it’s easy to see why cybercrime has risen as well. Bank workers will benefit from specialized preparation and help address the increased risk of the rapid rise in traffic to these industries, from consumers getting refunds on canceled holidays to companies accelerating cloud roadmaps overnight.

3. Increased Complexity in Banking Infrastructure

In 2019, more than 70% of financial firms were exposed to a cyberattack, a higher number than in any previous year. A quick look at what today’s banks are up against shows the following:

Outdated legacy systems: Maintaining legacy infrastructure comes at a high cost and comes with many risks, but most banks can’t get away from it. Critical data and software are often stored in legacy systems, forcing bank workers to deal with inefficient and outdated processes daily.

Hybrid deployments: As banks strive to modernize and adopt digital transformation, cloud deployments, including cloud-native and serverless infrastructure, are becoming more popular. Since Legacy cannot be eliminated, banks are left with a hybrid reality that is difficult to imagine and secure.

Attackers use supply chains and partner relationships to gain footholds into financial networks, from pooled cloud storage to physical relationships with FinTechs that may use financial and regulatory infrastructure.

Attackers thrive on sophistication when preparing a campaign against any company, recognizing that the more complicated a network security is, the more minor visibility security teams and bank employees would have.

4. Securing remote jobs in the post-COVID world – Banking Cybersecurity Trends

The operational difficulties that banks will face in 2021 cannot be overstated. KPMG forecasts that the banking industry will be permanently altered, with offshore service center closures necessitating increased outsourcing and, in many cases, long-term work from home. “Investing in the right support and preparation for workers in a difficult period would be key,” the financial behemoth says.

Working from home poses several challenges, including protecting BYOD policies, the realities of vulnerable home networks shared by numerous family members, and outdated or improperly equipped devices, ranging from laptops and PCs to routers extenders and routers. Some problems concern more than just HQ staff. In the United States alone, teller transactions are projected to decrease by 40% in 2020, with more than 20,000 bank closures expected.

Banks must concentrate their efforts on incident management tactics and team member education playbooks for at-home situations, or they risk exposing flaws that go unnoticed until it is too late.

5. Digital Banking Transitions – Banking Cybersecurity Trends

Of course, it’s not just workers who are making the transition to interactive. This shift coincides with changes in customer behavior. Bank branches were closing at a rate of three per day long before the pandemic, as millennials forced this conventional industry into the digital age. In reality, 27% of millennials have never visited a traditional bank.

Securing the growth of digital banking necessitates a thorough understanding of a broad range of security and privacy issues, including:

  • Digital identify theft and fraud.
  • Sophisticated phishing scams
  • Malware and ransomware
  • Credential leaks
  • Privilege escalation
  • Compliance regulations

Both of these threats, as well as others, can only be managed through banking security awareness.

It’s no surprise that 87% of banking executives say their cybersecurity problems increased last year. Banks and financial institutions will need more than a single technology to counter this fear effectively. They need to have an engaging, ongoing security awareness program that is always updated with their employees.

Most Popular

More from Author

Network Automation: A New Approach to Network Assurance

Networks are a critical part of any business, and ensuring that...

5 Cybersecurity Tips for Businesses

There are many benefits to working with IT Support Services to...

Use An LMS to Train Your Employees About Cybersecurity

Do you conduct cyber security training in your company? If you...

Jobs You Can Get With CCNA Certification

Cisco Certified Network Associate is a widely respected IT credential. The...

Read Now

Revolut Became the New Target For Phishing Scams. What happened?

On the 11th of September, Revolut users noticed unusual events in the app chat. A few days after the activity, people were alerted via email that the company had been the target of a cyberattack, which exposed multiple user accounts. This has decreased the bank’s credibility, and...

Getting Started with PCI Data Security Compliance

Getting started with Payment Card Industry (PCI) security for payment card processors and merchants is an actual result of the demand for credit card data security. The PCI standard comprises 12 requirements for companies managing, processing, or handling payment cardholder data. The 12 PCI requirements determine the architecture...

5 Ways To Protect Your Company Data From Hackers

According to economists and industry experts, data is currently the world's most valuable asset. This is hardly unexpected, considering that organizations of all scales and sizes rely solely on data to make crucial choices, seize opportunities, develop strategies, and enhance operations. For these reasons, you should make...

Common Email Phishing Attacks, Techniques & Preventions

Email phishing attacks are a form of social engineering commonly used to obtain sensitive user information, such as login information and credit card details. It occurs when an attacker poses as a trustworthy entity and convinces a victim to open an email, instant message, or text message....

Cybersecurity Vulnerabilities Any Business Should Look Out For

No business is immune to cybersecurity vulnerabilities. Small businesses are more at risk than larger businesses. This is because they often have fewer resources to devote to cybersecurity and may not have the same level of protection as a larger company. If you are a business owner,...

5 Ways to Quickly Secure a Small Business from Cyber Attacks

There is no question that cyber attacks and hackers are targeting small businesses. They don't have the infrastructure to deal with professional attacks; most can't afford to hold out against ransom attacks. Many businesses don't have any viable defense at all.  Any small business online is fundamentally a cash...

Pros and Cons of Using Shared or Private Proxy Servers

Proxies are internet go-betweens that are used by businesses and individuals. Shared or private proxy servers, in essence, functions as a buffer between you and the Internet. Proxies provide anonymous online browsing and can conceal the user's IP address. Anonymous proxy servers protects your location, browsing habits, and...

Pros and Cons of Shared Datacenter Proxies

Collecting freely available data online should be accessible to everyone, but the price of achieving it stops most businesses. Shared datacenter proxies are the solution to cut costs and maintain performance. Unfortunately, this isn’t widespread knowledge, and many users struggle to make a choice. We will cover the...

Cyber Security Risk Management: Best Practices

The continuous management of threats posed by insufficient safeguards against cyberattacks is an essential component of any corporation. The internet is not a safe place, even though we think it is. Hackers are lurking everywhere and just waiting for you or one of your employees to make...

How User Access Management Improves Network Security

User access management (UAM) is the process through which the administrator gives access to the right person to use the IT tools and services at the right time. This includes access to external applications, security requirements, and permissions. Many online tools are available nowadays where you can...

8 Essential Tips to Protect Against Email Phishing

Phishing scams are on the rise. It's thought that around 90% of all data branches directly result from phishing. Email phishing is a particular problem. In 2022, it's estimated that around 3.4 billion phishing emails will be sent daily. With businesses losing around $1.7 million to cybercrime...

Five Ways to Increase Your Website Security

With the change in time, businesses have now become more prominent online. There are many threats of fraud and data theft by malicious groups. At every second, there is a possibility that your accounts are being tried to hack into. Cyberpunks steal data to misuse them and...