The digitalisation within the banking sector has provided a lot of great benefits to both banks and consumers. Allowing accounts to be monitored and used 24 hours a day, 7 days a week, consumers have much more control and convenience when banking online or via their Smartphone devices.
However, while digitalisation has provided many benefits, it has also presented a few risks to the banking industry. Here, we’ll look at 5 data management and cybersecurity threats faced within the banking industry today.
1. Mobile Malware
Being able to check and use bank accounts via Smartphone devices has delivered a lot of great benefits. However, it’s also opened the door for mobile fraudsters to steal secure banking information.
Phones don’t tend to have the same level of security as computers. Therefore, it’s become easy for fraudsters to create and distribute mobile malware. This steals user information, such as log in details.
2. Quantum Encryption Breakers
Another more sophisticated threat facing the industry, is Quantum encryption breakers. This has largely become a problem within the United States, forcing banks to invest in quantum key distribution technology. This is so far the only known way to prevent Quantum encryption breakers which are threatening the security of quantum computing.
3. Unsecured Wi-Fi
As users can now access their banking no matter where they are, unsecured Wi-Fi networks can prove problematic for banks. When a user signs into their account via a public network, it enables everyone else on that network to potentially view and steal their credentials. This is especially true if customers choose to save their login details while using a public network.
4. New Data management Rules
Not all of the risks in the banking industry today relate to cybersecurity. New data management rules are also causing issues. The introduction of GDPR regulations has meant banks have had to rethink how they collect, store and use data. The penalties for not following the new guidelines can be significant. Therefore, many banks have been seeking advice on digital transformation to ensure they fall in line with the latest changes.
5. Outdated Software
Finally, outdated software is another risk in the banking sector. It’s crucial banks and customers have the latest in security software. Older versions won’t have the latest threat protection. Fraudsters continue to get smarter, so it is crucial that security systems are updated frequently.
These are just 5 of the risks relating to data management and cybersecurity the banking industry faces today. While digitalisation does deliver a lot of benefits, it’s important the risks are also assessed. Both banks and customers need to ensure they protect themselves against potential security breaches.