Financial institutions becoming more vulnerable to cyber-attacks

Financial institutions becoming more vulnerable to cyber-attacks; decline in the economic growth

Cyber-attacks are concentrating in every sectors of the society. Nowadays attacks against financial sectors are increasing day by day. The hackers find these sectors as a good source of money. The threat actors have developed advanced skills and tools to crack the security and get into their networks.

Recently, a huge cyber-attack occurred against the Hungarian financial institution. As per the investigation, it was a combined attack from the hackers of China, Russia and Vietnam and they used DDoS attack strategy. Once the hackers got control over the networks, they introduced botnets that caused heavy traffic in the servers of the institution. This traffic was around 10 times greater than the normal traffic. In this way they got control over the financial and sensitive informations.

The hackers are using complex digital ambuscade to take down the firms. It is due to this reason that the financial institutions make their security stronger.

The security researchers are finding possibilities in the increase of ransomware attacks against banking sector in 2021. They will target the sensitive information when the officials will be busy arranging the money for the ransom. 85% of cyber-attacks happening today are connected with the pandemic. Millions of people has shifted their work environment and are using unsecured network to access the company information. This opens a new ray of hope for the cyber hackers who are waiting to exploit your organization.

To avoid all these consequences, the banking sectors should strengthen their security measures and monitor every happening occurring inside the company.

Latterly, financial firms are adopting cloud services for better resilience and pliant working strategy. Compared to other services cloud computing ensures more protection and now they act as silver linings for the financial systems.

Choosing the cloud services opened a new path of digital transformation for banks and other financial entities. Implementing cloud services in the banking sectors is a slow process but some of the banks like Forbes reporting Bank of America, Llyods, BNP Paribas and Toho bank have successfully upgraded to cloud computing. It is estimated that by the end of 2021, 60% of the financial entities will establish cloud services.

Every bank might have experienced cyber-attacks in one or the other form. Financial sectors are 300 times more vulnerable to cyber threats than other institutions, reported the Boston consulting group. In 2016, the cyber hackers hijacked nearly 100 million dollars from the Central Bank of Bangladesh.

The research conducted by the Federal Reserve Bank of New York finds that the impact of cyber-attack on banks is higher because of their interconnectivity system. State sponsored hacking group’s poses main threat to institutions these days.

Comparing to the officials and authorities, customers does not have more effect on the cyber-attacks against banks. They have trusted the banks and deposited the funds. If something goes wrong, they officials have the full responsibility to refund them. Business accounts are more vulnerable to attacks since they poses fewer protection compared to other accounts.

When the hackers target a financial institution, they would take down the processing systems and make changes in the critical financial transactions. They even decline margin calls.

Cyber security is becoming the top priority of the banking sector.

How to prevent cyber-attacks against financial firms?

  • Have a regular check-up and back-up of customer data.
  • Each employee should be allowed separate user account and they should change the password in every 3 months.
  • They should have a strict ban against using banking networks to download or install unauthorized softwares.
  • Banks should have a proper approval protocol. Both the sender and the receiver must approve before the transaction.
  • Networks should be protected with Firewall.
  • Every system in the organization should have a secure anti-virus software and threat detection software.

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