An Essential For the Banking Sector: Cyber Security

cyber security

Millions of dollars can be found in most banks and there are thousands of hackers that want to get their hands on the big bag. Financial institutions are actually the biggest victims of cyber attacks when compared with businesses in other industries and this means they have to ensure their cyber security game is on point.

Cyber security is now a major concern in the banking sector as the economy becomes digital. Banks and any financial institution, such as Safestone Financial, should always ensure they implement, utilize and safeguard procedures and customer data. How effective a bank’s cyber security is will determine how customers perceive the safety of their personal information. 

Cyber security in the banking industry 

Cyber security is meant to guard against attacks, viruses, hacking, malware and data theft by blocking any unauthorized access to programs, devices, data and networks. The main goal of cyber security is to protect users’ assets while banking. Considering that most people prefer to transact through digital payment methods, a bank should increase protection through cyber security. 

Why is cyber security essential for banks?

It seems like the days of armed robberies are almost gone as robbers now tap into the digital world to gather cash. Here are a few reasons why a bank’s cyber security should always be at its best. 

  1. The number one reason is to protect the money. Imagine waking up to an empty bank account. Cyber security can help to prevent such an event.
  2. Number two is to protect the bank’s reputation. Maintaining a proper security system means that the bank is reliable and enhances the reputation of the bank attracting more customers. A bank should have regular system enhancements and security check-ups.
  3. Number three is to protect the confidentiality of Customers. Once a customer’s account is breached it can be extremely difficult to recover the funds. Hackers continue to adopt new technologies to help access user accounts illegally. This means that banks have to ensure the cyber security measures put in place can protect their systems.
  4. Lastly to protect the bank from getting penalized. When a cyber-attack happens banks don’t only lose the trust of customers but are also faced with penalties. These penalties are issued in the bank’s name and can make it hard for some institutions to recover.

Important statistics 

  • 92% of ATMs can be hacked. 
  • The annual cost of cyber attacks in the banking industry has reached $18.3 million per year per company. 
  • The amount paid to ransomware scammers sits at nearly $1 billion annually, according to the FBI.
The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.