Over the past few years, banks have increasingly adopted digital processes and products, offering improved services to their customers. Online and mobile banking, for example, has revolutionised how customers interact with their money, and has allowed banks to capitalise on necessary digital transformation. It is now easier than ever to open new accounts, manage money and communicate with banking institutions.
However, it is now also easier than ever for a cyber attacker to steal highly sensitive data and disrupt critical services. Banks hold an extensive amount of personal information, as well as manage money, making them ideal targets for hackers. Between 2017 and 2018, reported cyber incidents within the UK financial sector rose from 69 to 819, according to a Freedom of Information Request to the Financial Conduct Authority. As banks become more dependent on technology through new payment systems, IT software or databases, hackers find and profit off of an increase in vulnerable entry points.
Lloyds Bank reports that cyber crime is now one of the top five concerns within the financial services industry, with 70% of organisations actively prioritising cyber security. A cyber attack is not only detrimental to customers, who may have their personal data stolen and cash flow disrupted, but also highly damaging for a banking institution. For example, critical processes and services within the bank may be disrupted, causing costly outages, and the reputational effect of a successful hack may cause the organisation to lose established customers.
Banks are now dependent on various third parties to provide their services. For example, mobile banking requires an outside application to confirm a customer’s identity. While these suppliers are critical to business, they do represent a potential vulnerability. Therefore, it is crucial to maintain compliant to regulations such as GDPR, ISO27001 or Cyber Essentials, which ensure that an organisation enacts proper procedures to protect against hackers.
Consequently, banks need to start reviewing their current cyber security and compliance practices and implementing a dynamic risk management process for business assurance. Using integrated risk management platform CyDesk, organisations are empowered to identify their cyber threats, analyse them for critical risk indicators and effectively manage cyber risks.
As we enter 2020, banks should ensure that cyber security is no longer their weak point. Proactive approach to cyber security will maintain efficient business operations, protect sensitive data and sustain customer satisfaction and trust.
Click here for more information about how CyDesk can help keep your organisation secure.