With the pandemic upon us, every industry has had to make massive changes to how they work to survive. Especially industries like banking had to undergo massive change to operate in a way that wasn’t disruptive to customers while still safe.
Like every other industry, the banking sector also turned to technology to get them through the hard times. On switching to a digital platform, banks realized that they got faster and more efficient. With many of their employees comfortable working from home, it was a turning point for most banks.
However, with such important advancements came a different kind of threat. Going digital made them vulnerable. But, what are these threats, and how do you mitigate them?
Well, here is exactly how.
Digital Banking Threats
Before you get into solving problems, you need to understand what they are. Here are the main threats faced by digital banking solutions.
Identity Theft
Cases of identity theft and fraud went up almost 13% between 2019 and 2021. With the advent of online banking, identity theft has become even easier. Customers and banks alike are more vulnerable to identity theft.
A person with a stolen bank card can make purchases online that wouldn’t have been possible in person because of EMV security.
Hacking into a bank server allows them to steal the identities of customers easily. There’s no need for any sort of contact, which makes it so much easier to pull off during the pandemic.
Account Takeovers
Takeovers are a different type of identity theft crime that has become more popular recently. Instead of completely stealing the person’s identity, hackers will change the information on the bank account, such as the email address.
When they change such crucial information, the customer does not receive any updates on their own account – it’s rerouted to the hacker!
This form of fraud has significantly increased, with almost 22% of adults in the US have been victims.
Teleworking
Banks, much like every other industry, have been working remotely since the start of the pandemic. The unsecured lines, networks, and communications modes allow criminals to access extremely sensitive data from any employee.
The teleworking cybersecurity threat is extremely real and needs to be dealt with quickly and effectively.
Malware Automated Threats
Malware threats are pieces of malicious code that complete menial, repetitive tasks at basically no cost. Criminals can reap a significant financial benefit from these with little investment cost on their side, making it a very attractive option.
Phishing Scams
Since the world has gone online, it’s gotten harder to distinguish the fake from the real. Real apps, emails, accounts, and numbers are mixed in with a ton of fake substitutes.
When it comes to banking, this means that there is a very real threat of customers responding to a phishing scam believing that it is their bank.
Phishing isn’t just affecting individual customers with bank accounts; it’s also affecting organizations. Almost 22% of data breaches in such organizations are a result of phishing.
Solutions
So, what can be done about these very real and terrifying threats?
Well, there are a few options.
Verification
Customers need to be taught how to differentiate and verify whether the apps and websites they’re using for their banking purposes are real or not. At the very least, banks need to encourage multiple verifications from their customers.
Phishing Prevention
Banks need to provide education regarding identifying and avoiding phishing scams. Education involves providing clear signs of such scams or what to do in the event of being a victim.
Multi-factor Authentication
Using multi-factor authentication is by far the best way to prevent such scams and frauds. With several sources of protection, it can get hard for hackers to get into your account without being noticed.
Endnotes
Digital banking threats are incredibly real and terrifying. A little foresight, education, and clarity can mitigate threats. Giving up the ease and efficiency of digital banking over the threat of such scams is not possible, so we might as well delete the threats!
