Cybersecurity in Digital Banking: Threats, Challenges, and NLS TECH Solutions

It is common knowledge that cybersecurity breaches target banks for their customer data. According to a 2021 Banking report by the Central Bank of Kenya (CBK), most hackers target financial service providers. Meaning during onboarding, whenever your customers give sensitive information to you, it could fall into unauthorized technicians’ possession.

Digital banking refers to all banking activities conducted via mobile or the internet. According to the Juniper Research Report, the digital bank user experience is a priority today, with customers demanding quick transactions and authentication processes. 

Many banks now offer digital services through mobile apps or internet services to make banking easy and convenient. These services enable account holders to check their balances, transfer money, pay bills, monitor spending habits, and initiate new fund transfers from a computer or smartphone.

What Is Cybersecurity?

Cybersecurity exists to protect banks’ electronic systems, networks, and data from malicious activities by hackers and cybercriminals. Increased bank data output and the risk of elusive data siphoning have made cybersecurity essential.

Cybercrimes are malicious attempts to disrupt computer systems, like the ransomware that infected the Atlanta public transportation system in 2017. Other attacks are efforts to steal delicate information.

Cybercriminals can break into bank websites, steal login information then transfer funds out of customer accounts. They can also take over email accounts and intercept text messages to reset passwords.

It’s difficult to perceive a world without smartphones and computers, let alone the internet, in today’s society. For that reason, banks adopt precautions to keep hackers off personal and bank information. To ensure they keep clients and credibility and avoid crippling losses.

Basics of Digital Banking Cybersecurity

Banks and credit card companies have been trying to keep their customers’ data secure as they develop and distribute new banking products with new technologies. Financial institutions are developing new security measures to maintain strict security policies. These policies ensure the safety of all customer’s data, regardless of how it is stored or used. The goal is to preserve a trusted business relationship between consumers and financial institutions.

For instance, banks might employ SSL technology to ensure communication security. SSL uses public/private key cryptography to steer hackers away from B2C communication channels.

A digital certificate exists in banking systems to confirm customers’ account identities. In addition to logging into customers’ accounts, banks use digital certificates for encrypted email communication, signing codes for their software, logging into their websites, and confirming domain name ownership.

Why Is Digital Identity Security Important?

 Keeping online identities safe is a continuous journey goal that requires both diligence and vigilance. Digital identities enable you to access your customer’s bank accounts; if this information falls in the hands of cybercriminals, they can commit identity fraud. Hence, protecting your customer’s online IDs should be a priority.  

How Does Digital Banking Cybersecurity Help You?

First, at the very least, it keeps your credentials safe online. These credentials include social security numbers, National/Passport numbers, birth dates, and credit card numbers.

Second, digital security notifies you when hackers log in to your client’s accounts. Using services like identity monitoring can alert you to suspicious activities.

Third, secure digital services can help you freeze your client’s account access and reactivate it once security is reassured.

Why Are Unmitigated Cyber-Attacks So Dangerous?

Cyber-attacks come in many forms. Cybercriminals deliver waves of cyber-attacks that are highly coordinated and dynamic. Some of these include:

• Phishing is among the prevalent cyber-attack techniques hackers use to gain sensitive data from your customers and clients. Often hackers access banking details to siphon money from bank accounts. Encrypting your data can mitigate this cybersecurity threat. At the very least, prevent easy access to confidential data.
• Secondly, SIM swapping attacks have become rife in mainstream media due to increased mobile phone use since 2017. In a SIM swapping attack, an attacker takes over the mobile phone number of the legitimate subscriber. Such attacks often interrupt money transactions and send SPAM messages to social media and email accounts.
• Lastly, an internal attack on the core system is a security risk within the bank. For instance, an SQL injection through the taff’s computer can put the whole organization at risk. Other attacks include extortion emails, ransomware, credential surfing, and exploitation of the Internet of Things (IoT).

Why Should You Care Now More Than Ever?

It is no longer a question of merely knowing how. You have to adopt scalable solutions to keep up with the increasing use of online transactions. According to a 2021 report by Kenya Bankers Association, nearly six out of every ten bank customers (58.5 percent) now prefer Mobile Banking,

Additionally, 92% of the banking institutions in Kenya have adopted or developed a digital banking solution (mobile app or USSD) towards the same, according to the same report.

As a result, modern banking cannot exist without an extensive, stable, and safe IT environment. In addition, data breaches on digital platforms can lead to losses and loss of credibility that could take years to redeem.

Bottom Line

With so many choices available, your best option is to keep your digital banking security budget and strategies within grasp.

Of course, relying on NLS Tech Solutions, the industry leader in digital banking, will prepare you for impeding digital security breaches. Banks in Kenya and Africa appreciate NLS TECH digital banking security strategies. 

Visit our website or contact us today for a free cybersecurity consultation or find out how to get started with them.