The threat of financial losses, regulatory consequences and reputational damage has spurred financial institutions to innovate and accelerate in the field of cybersecurity. However, the intersection of cybersecurity and banking can feel like a major battle. As soon as one vulnerability is addressed, another is created. Combine this with the increasingly diverse ways consumers are interacting with their money, and there’s a recipe for something disastrous. Let’s take a look ahead at three trends that are likely to play a role in 2020’s biggest banking security headlines.
- Mobile apps and web portals will create more security risks – as consumers continue their long slow march away from cash, financial institutions are becoming more heavily invested in mobile and web-based services that facilitate payment and transfers. However, these applications are creating new vulnerabilities that financial institutions will have to address.
- Third parties will continue to be a target – in the last decade, financial institutions have poured countless resources into protecting their own networks and systems from cyberattacks. As a result, hackers have looked elsewhere for points of entry. Recent major banking cyberattacks have been caused by vulnerabilities in shared banking systems and third-party networks. As organizations become increasingly reliant on third-party vendors, these vendors must be continuously monitored for cybersecurity vulnerabilities or it could cost financial institutions millions.
- Cryptocurrency hacks will keep big banks on their toes – true believers in cryptocurrency think it should replace the global financial system, and they typically cite security as a reason why. Some analysts have even recommended that moving money to crypto wallets as a good strategy to avoid losing it. However, those who have been paying attention know that cryptocurrency exchanges have had some major hacks in recent years.