Cybersecurity is one of the biggest concerns that financial institutions have today, especially with increased digitization exposing them to greater risks from hackers. Here are the top cybersecurity risks for financial institutions in 2020.
- Mobile and web banking – while apps and online banking make it easy for consumers to manage their accounts, they also provide a huge vulnerability that financial institutions must predict and avoid. Surprisingly, an Accenture investigation of 30 of the most popular banking apps revealed that each has at least one security risk, including a quarter of them having a high-risk security flaw.
- Third parties – the use of financial services from third-party providers has led to a situation where banking systems are at risk. Banks should focus on building secure and safe bundles with third-party service providers for all operations.
- Cryptocurrency – there are people who consider moving your assets to the crypto wallet is an excellent opportunity to secure them. However, there may be some risks of hacking during the exchange process. For example, USD 534 million was lost during a crypto exchange in Japan in 2018.
- Data security – information is the most valuable thing today. Today, Google, Facebook and similar companies are far better at protecting sensitive data than financial institutions. In large IT-companies, security is literally built into products themselves as an essential component. At the same time, financial institutions are still trying to build data management protection like a kind of dome.
- Information security managers – now that the digital component has become decisive for the financial market, data protection requirements have changed. And now, having a strong technical background is one of the most critical elements for information security managers.
- New data-related cultures – a competent information security manager will be able to change the idea of security in the bank from a blind fear of abstract threats to a conscious desire to solve specific issues, ultimately creating a culture of data security.
- Compliance – the sphere of information protection, like any other, is regulated by a number of laws. Some financial institutions believe that compliance with established standards automatically guarantees a high level of security.