Cybersecurity Threats in the Banking Sector



Cybersecurity Threats in the Banking Sector- Cyber-attacks have been regarded as one of the most serious threats to financial institutions for the past half-decade. The expertise and strategies of cyber criminals have improved as technology has advanced; they have become more organised, forming groups such as Lazurus, making it harder for financial institutions to gain an advantage in the war on cybercrime. The cost of cybercrime in the banking sector is significant, ranging from lawsuits to the cost of preventing another breach and a blemish on the institution’s reputation.

When compared to any other financial service industry, financial service providers such as the banking sector are more likely to be attacked.

Banking sectors that use mobile and web to deliver services have weak cybersecurity protections, which is why many cybercriminals prefer to attack online and mobile banking systems. Furthermore, a cyber attacker succeeds to collect customer and employee information and use it to breach the bank’s security system under the guise of the dark web in order to steal bank data and money.

Let’s take a look at the numerous cybersecurity threats that the banking industry is facing:

Identity theft

Every year, it is estimated that identity theft costs the banking industry more than $10 million. According to Javelin Strategy and Data’s research, nearly 15 million customers in the United States have been victims of this type of scam.

Identity theft is when a person’s name and credit details are used without their permission to borrow money and make a transaction. When a data breach happens, additional cybercriminals sell or buy client data on the dark web to utilise in other breaches of the customer account or financial sector.

Threat from employees

A major portion of the risk is due to human mistake and unhappy staff.

Many employees use their mobile to access the bank’s service or to check their email on the bank’s gadget. This opens the door for malware and phishing assaults disguised as a real offer or gift to be sent to them. Furthermore, bank employees who are dissatisfied with the institution’s treatment steal important financial information, which they may opt to sell to hackers.



Supply chain attack

Most networks include security flaws that can be exploited by backdoor software attacks, such as DNS lookup and connect following techniques, which provide the attacker remote access without the user’s knowledge. Once a hacker gains access to the network, he can bypass the detection system.

One of the most major supply chain hacks occurred in Shadow Pad, where a backdoor was discovered in its genuine programme, exposing customer data to exploitation.

Ransomware

One of the most serious victims of this attack is the banking sector.

Ransomware is malicious software that enslaves the victim’s service until the ransom money is paid. Employees are vulnerable to this attack if they click on a link in a questionable email, which instals malicious software.

Jackpotting and ATM malware

In Europe and the United States, the case of jackpotting has been rampant. Criminals take use of flaws in the ATM’s software and physical state; this allows the thief, who is usually dressed in a business uniform, to gain access to the cash held in the machine reserves using a key that cracks the ATM. Furthermore, because the money taken does not belong to any account, it cannot be recognised early, allowing the burglar to flee unnoticed. They sometimes leave skimmers, which are devices that scan people’s details such as account information and then sell the information.

Synthetic fraud

This entails the construction of a false identity, which includes everything from a social security number to an identification number. The attacker creates numerous, then uses them to apply for credit from banks, which they then use to purchase goods and services. Because this social security number does not exist, it cannot be traced in the system or anyplace else. According to data published in the Wall Street Journal, there is an outstanding credit of more than $300 million for which the people who borrowed the money do not exist.

Jennifer Thomas
Jennifer Thomas is the Co-founder and Chief Business Development Officer at Cybers Guards. Prior to that, She was responsible for leading its Cyber Security Practice and Cyber Security Operations Center, which provided managed security services.