Answer to Question #305039 in Management for sanky

Question

You have been appointed as IT Head of a soon to be opened bank in India by the name of “People’s bank” which will have branches all over India. People’s bank is a private sector bank. Highlight atleast 5 security threats that a bank may face in today’s times and suggest 5 innovative IT security mechanisms to ensure that such threats do not harm your bank & that your systems remain as secure as ever

Answer 1

With all the cyber threats that exist today, banks are more vulnerable than ever to becoming the next victim of a malicious cyber-attack. The banking sector is especially vulnerable due to the value of the data it hosts. Hackers sell the stolen financial data and banking credentials to high bidders or use it to siphon off millions of dollars. Below are some security threats that a bank may face in today’s times;

Credential Stuffing-  This is a type of cyber-attack that usually targets the personal data of banking customers. Using stolen account credentials, hackers can gain unauthorized access to user accounts using automated large-scale login requests. The stolen information can then be used to attack websites and servers in order to try to gain access to critical IT infrastructure.

Phishing Attacks- This is a common type of cyber attack that’s often used to steal user data, including login credentials and credit card numbers. Phishing occurs when an attacker tricks an unsuspecting victim into opening a malicious link, leading to an installation of malware which then freezes the system as part of a ransomware attack.

Ransomware- This is a type of malware that encrypts data, making it impossible for the owners of that data to access it unless they pay a hefty fee.

Cloud Providers- Cloud services come in very useful by helping banks offset IT expenses, boost system up-time and ensure their data is being stored safely. With so much information stored on the cloud, particularly for the use of public services, cloud providers have become easy targets for malicious attackers looking to gain access to financial institutions.

Data Manipulation- Many insidious cyber-criminals manipulate data instead of stealing it outright. They make changes in the transaction data stored in the system. Since the changes appear legit, they are almost impossible to detect.

Below are some methods banks can adopt in order to create a safer and secure digital landscape and defend against potential cyber threats.

Assess Cloud Security- Banks should regularly review their cloud infrastructure to ensure it’s up to date. Assess their cloud security’s current state compared to security benchmarks, best practices and compliance standards.

Monitor Cloud Security- Use a vulnerability management tool to help automate threat detection and protect against potential threats before they become a problem.

Establish Strict Access Management Policies- Only provide access permissions to employees who require it, especially contractors or part-time workers.

Establish a Disaster Recovery Plan- Having a plan in place helps banks avoid data loss and allows them to minimize downtime after a disruption. This works only if data is backed-up regularly and often.

Encrypt Data- Banks can secure their transactions and personal information online using encryption software that converts the information into code that only the bank can read.