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The Role of Digital Security in Online Banking
According to a report from Statista, the number of cyberattacks in banking is growing steadily, with the number of threats in 2022 almost tripling the number of attacks in 2013[1]. To add to that, according to the report from 2024, finance and insurance is the second most frequently cyber-attacked industry worldwide, with only manufacturing being targeted more often[2]. This proves one thing: if anything needs cybersecurity, it’s banking.
When looking at online banking, digital security gets even more important. While the shift to mobile banking and new IT solutions has come with many benefits for both customers and financial institutions, it opened new doors for cybercriminals to break through. With third-party integrations or new entry points (customers’ mobile devices), the scope of security in online banking had to be widened even further, and its importance became higher than ever before.
Customers also want to know that their sensitive information and money are safe. Any news of cyber attacks will effectively reduce your clients’ trust in your institution and might even lead to them churning and choosing one of your competitors.
Security Threats in Online Banking
Knowing how banks manage to sell complex financial products remotely requires understanding the challenges they face in the process. The same goes for digital security in online banking – first, we need to take a look at the threats that financial institutions have to prevent.
1. Advanced Persistent Threats
Firstly, there are the advanced persistent threats (APTs). These are complex campaigns aimed at infiltrating a bank’s network, staying in it for a while, and then stealing sensitive information in order to commit financial fraud.
2. Phishing
This threat to digital banking security concerns both financial institution employees and customers. The former might be targeted for the scammers to gain access to bank systems, while the latter are vulnerable to identity theft in the form of stealing credit card information or login credentials.
Two-factor authentications or advanced account management systems may help protect both of these from the consequences of such attacks.
3. Supply Chain Attacks
With the development of digital banking, financial institutions started using third-party services to provide better customer service and gain an edge over their competitors. This, however, creates additional access points for the wrongdoers.
If the third-party tool isn’t secure enough, it might become the source of data leaks, leading to severe consequences. This is why you should evaluate the security of your digital banking solutions and integrate only those that employ the finest measures of protecting your data – such as our LiveBank platform.
LiveBank for Digital Security in Online Banking
While maintaining security in digital banking is mainly on the side of financial institutions and their IT infrastructure, so we cannot do anything about it, we make sure to polish the security measures that we can control. This means preventing any supply chain attacks that could be targeted at our platform.
We store the data in a cloud system, which is much more secure than standard data storage [3][4][5]. This is due to the fact that clouds won’t get infected by malware that is, for instance, accidentally downloaded by an employee, and the data is stored on several physical data mediums.
Our virtual banking solutions are also encrypted with the best techniques in order to protect your information even further. And, cherry on top, we implemented all these security features so that they wouldn’t slow down the system, letting you maximize both your security and efficiency. This is exactly why financial institutions trust us.
Security in Online Banking: Conclusions
Digital security in online banking is the key to building trust in your customers while protecting your business operations from wrongdoers. Since the financial sector is one of the most frequently attacked ones, and the number of threats is constantly growing, you need to implement the finest security measures. For that, you cannot just look at your own infrastructure but also analyze the third-party services that you implement in your digital banking, choosing only those reliable with strong cybersecurity, such as our LiveBank platform!
You may also read: LiveBank’s expertise in cloud and AI banking at Money20/20 USA
Sources:
[2]https://www.statista.com/statistics/1315805/cyber-attacks-top-industries-worldwide/
[3]https://us.norton.com/blog/privacy/what-is-cloud-security
[4]https://thesciencebehindit.org/how-secure-is-data-stored-in-the-cloud/
[5]https://www.cloudflare.com/learning/cloud/what-is-cloud-security/
