We all are in an era where everything is available on one click. Due to digitalisation, things become very easy and effortless. It makes the life of people very easy. But it has certain drawbacks as well. One of the main disadvantages or drawbacks of digitalisation is cybersecurity threats. Nowadays, nothing is safe; your data, banks, private information, etc, everything is at stake. One has to take extra care while doing anything digital today. The current write-up will discuss cybersecurity in digital banking as well as threats, challenges and solutions of cybersecurity in digital banking.
What is Digital Banking?
If we look at the traditional banking system, there is a lot of paperwork and office work involved. There are a lot of things like cheques, DD, etc., options available in the traditional banking systems. Just the opposite of digital banking is there. In digital banking, every transaction is paperless, and everything just happens with one click. The best example of such kind of banking is Paytm, Google Pay, etc. Although it makes the work of people easy and effortless, there are many threats to cybersecurity in digital banking. Hence, if you are opting for such kind of banking, you must be aware of the challenges as well as solutions of the cybersecurity in digital banking.
What is the Need for Cybersecurity?
There are hundreds of reasons for the need for cybersecurity, out of which a few are mentioned below for reference purposes:
- Protect the assets of individuals as well as corporations
- Provides protection to cashless transactions of individuals as well as corporations
- Protection against the data of the banks, individuals and corporations
- Security against the breach of data
- Helps in building trust in the digital banking system
- Creates a fiduciary relationship between the bank and the customer
- Protects the data from dark webs
- Build reliability and credibility of the banking system
- Security against the hackers
Threats for Cybersecurity in Digital Banking
It is really important to take measures to protect the private data of the consumers, banks and corporations. Here are certain threats against which serious measures must be taken:
|
Threats |
Measures |
|
Unencrypted Data |
Unencrypted data can be easily accessible by hackers; hence, data must be encrypted so that even after the data is leaked, it cannot be used by the hackers for any purpose |
|
Malware |
Before installing any malware on your device, think twice because it can help criminals to get access to your data. Hence, be careful while using such type of malware software |
|
Third-Party Services |
Taking or outsourcing services to a third party has become very common these days. If, as a digital bank, you are taking the services of any vendor, make sure that their cybersecurity measures are strict and that your data will be secure with them. |
|
Spoofing |
It is the most upgraded version of cybercrime. In spoofing, the same URL as the original website’s URL of the banks has been created, and this will mislead the customers, and their entire data will be stolen. This is how they commit another cybercrime. |
|
Phishing |
Phishing scams are the most sugar-coated scams in the cybercrime industry. They look very genuine, due to which customers share their details with them and end up in a mess. |
|
Trojans |
It is also software that needs to be installed in the system. It works well until any malicious code has been entered by the hackers. Hence, one must use it securely. |
|
Ransomware |
Ransomware, the name of the threat itself, suggests that it is something related to ransom. It is one of the most common threats in the banking industry. Approximately 90% of the banks have already faced it. In this, the access to the data has been stolen from the banks, and then they ask for money to give back the access. |
Challenges Faced by Digital Banking in Cybersecurity
Some of the key challenges faced with respect to cybersecurity in digital banking are given below:
- Lack of awareness among individuals, as well as corporations, regarding the threats and their solutions with respect to cybersecurity
- Non-seriousness regarding cyber crimes and cyber security
- Less budget is allocated to this sector in the digital banking system
- Access management is another challenge the banking sector is currently facing
- Increase in ransomware cyber crimes
- Access of data by the hackers
- There is no strong law against the same crime in India
Solutions for Cybersecurity in Digital Banking
Protection of the various programs as well as networks from digital attacks in the banking sector, which are fully digital, is called cybersecurity in digital banking. Some of the basic measures one must take for cybersecurity in digital banking are given below:
- Create awareness regarding the sources of cybercrimes and how one can save themselves from the cyber attacks
- Must develop the integrated security system
- Use technology wisely and with all the possible measures that can protect or save the data from cyber-attacks.
- Banks, as well as customer awareness, are important
- Data must not be breached
- Secure data from reaching on dark webs
- Always check twice before giving or sharing any information with anyone
- Don’t share OTPs with unknown phone calls
What to do After Cyber Fraud?
If any kind of cyber fraud with respect to money has been committed against you, the first thing you must do is complain regarding the same. It is really important to make it known to the authorities so that they can check on their level. There are online platforms for the government where you can file online complaints while sitting in your comfort place. Also, there is a number for financial fraud in the country; call on that number. The number for financial cyber frauds is 1930. This will surely help you out.
Conclusion
Cybersecurity in digital banking is one of the most important things banks must pay attention towards. After digitisation, almost the entire banking system became digital which increased the chances of cybercrimes a lot. Criminals find new ways to infringe the data daily hence, it is really important to be aware of these things. To mitigate these risks, creating awareness about cyber threats and solutions, developing robust security systems, wise technology utilisation, customer and bank education, data protection, and careful sharing of information are vital measures. Furthermore, strengthening cybersecurity laws is essential to address the evolving landscape of digital threats effectively. In this digital age, safeguarding the integrity of digital banking is not just a choice but a necessity to ensure the security and trust of all stakeholders involved.
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