Banking has changed vastly over the past few years, as new technologies emerge to change the way we transact. Non-traditional methods of transacting, such as the blockchain and mobile banking, have emerged, causing an influx of data from multiple sources.
Data is no longer generated purely from ATMs or on site, but through online banking, eCommerce platforms, mobile applications – both banking and for mobile purchasing, and non-banking platforms such as the blockchain. The introduction of these omni-channel platforms has led to a need for broader, more effective security measures to be put in place.
The likes of Ransomware and Malware have been causing quite a stir on a global scale in the past few months, however the banking sector been besieged by all manner of cybercrime since the dawn of digital banking.
As the business of banking is centred around the handling and transacting of money on various scales, banks and their customers are often considered soft targets for cybercriminals looking to make a quick buck. However, while cybercrime can be massively expensive for banks, their true Achilles heel is their reputation, the loss of which can extend the cost of cybercrime even more, as banks lose existing customers, potential business and even sometimes having to shut their doors.
Cybercrime, in line with technology, continues to evolve, taking new forms and finding new ways to infiltrate financial enterprises, and banks are struggling to maintain pace with this evolution. This is largely due to the fact that there are so many new methods of banking along with the strong shift from traditional banking to mobile banking.
Financial theft, fraud, identity theft, theft of intellectual property (IP) and general damage to the business processes, critical infrastructure and IT systems are but a few of the ways in which banks are affected by cybercrime – on a daily basis.
With banks typically absorbing the financial impact of losses caused by cybercrime, whether to themselves or their customers, there is a huge focus on ensuring they are protected and ready for anything that enterprising hackers can throw at them.
Evolution of cybercrime
As banking has become more digital, moving from traditional banking methods to Internet banking, telephone banking and mobile banking, breaches of data and confidential information have risen. With every new avenue of banking that is explored, another…
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Read this article by Sanjay Vaid, Director of Cyber Security and Risk, Wipro Limited, as well as a host of other topical management articles written by professionals, consultants and academics in the December/January 2017/18 edition of BusinessBrief.
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