Banks scale up security measures with preemptive action such as customer education, use of data analytics and biometrics in a bid to prevent cyber crime.
December 01, 2015 | Neeti AggarwalWhile the advancement of technology has made banking more convenient for customers through online and mobile banking, it has also made the industry more vulnerable to cyber fraud. The financial industry has traditionally been a favourite target for cyberattacks, and despite efforts from banks, incidents are not only rising but also becoming more sophisticated. Perpetrators have kept ahead of banks in targeting loopholes in technology systems and the fast pace of change makes it increasingly difficult for banks to manage these threats. With the wide range of attacks and threats in the market today, no one solution fits all. Banks are now engaging in a multi-pronged approach with layered security systems and processes.
The gravity of the challenge
Damage caused by cyberattacks is potentially extensive and often irrevocable. They can occur without prior warning giving little reaction time to affected financial institutions (FIs) to take action. Statistics published by various institutions and central banks in recent years have indicated that the frequency and sophistication of attacks and their potential impact are on the rise globally.
According to Bank Negara Malaysia, global economic losses resulting from cybercrimes are estimated to be approximately $375 billion annually. In a survey conducted by the Associated Chambers of Commerce and Industry of India and PricewaterhouseCoopers published in June 2015 on current fraud trends in the financial sector, financial fraud in India led to approximately $20 billion in direct losses annually.
The enormity of the problem can also be gauged by Royal Bank of Scotland’s revelation that 5,000 of its customers fell prey to various scams from January to September 2015 at a total cost of more than $38 million.
The 2015 Global Cybersecurity Report by ISACA, an int...
Categories: Keywords:Cyberfraud, Cyber-attack, Financial Crime, Global Cyber Security, Biometrics, Zero-day Attack, Financial Policy Committee, Monetary Authority Of Singapore, Hong Kong Monetary Authority, Reserve Bank Of India, Bank Central Asia, Big Data Analytics
