Essay - CYBER THREATS ON BANKING INDUSTRY AND WHY WE SHOULD CARE | SBI PO, BOB Manipal, NICL AO 2017 Descriptive

A cyber threat is any malicious act that attempts to gain access to a computer network without authorization or permission from the owners. There is no disputing that cyber crime is at an all time high. It seems not a day goes by without an organisation suffering a security breach or customers of a major bank having money stolen from their accounts. One of the main targets for cyber crime is without a doubt banks. In the last year, banks from all over the world have been hit by hackers. So why are banks such a lucrative target for cyber crime? The answer is simple, cyber criminals go where the money is, and banks have more money than most other organisations.

As financial institutions shift to digital channels like online banking and mobile transactions, the attack surface grows, and there is more to protect. The threat of cybercrime on the global banking and financial industry is apparent with a tectonic increase in cases over the past few years. These attacks have become highly targeted from hacking the bank accounts of individuals , companies , governments and demanding heavy ransoms to decrypt the data that was force-encrypted.

Recently  “Wannacry” ransonmare created huge ruckus around world is a frightening reminder of the vulnerability of a connected world.

Steps to be taken to secure from cyber threats :

• There is urgent need to update the policy framework and make concerted and committed efforts to develop robust cyber security systems in our country. Fortunately Indian government has set up a Cyber Swachta Kendra – Botnet cleaning and malware analysis centre, which is providing tolls like USB Pratirodh, Samvid App, M-Kavach etc.,
• Central government must enhance cyber hygiene among all end-users and to create a secure and safe internet ecosystems and The Centre Emergency Response Team (CERT-In) must co-ordinate required tasks.
• Banks must  practice a rigid cyber hygiene regimen to prevent malware infections on their systems and to ensure security through suitable anti-malware.
• The other area that requires immediate attention is to increase insurance coverage for cyber attacks. With rise in malware attacks, banks face increasing risks in cyber space. Such attacks may lead to operational and other security interruptions.
• Banks has to aware their customers about cyber attacks and measures to be taken to stay secure and not to breach any sensitive data.
• Banks must also have an eye on insiders as there are instances where the employees leaked highly secured data for their malicious desires.
• To proactively manage the vulnerabilities that could be exploited by hackers , updates have been rolled out by SWIFT, banks must follow them.
•  Additionally, the Reserve Bank of India (RBI) has released a set of guidelines to manage the risks associated with such attacks. RBI’s circular last year covered several notable suggestions, ranging from arrangements for continuous surveillance,  creation of a cyber security policy etc., RBI also constituted Meena Hemachandra committee to frame recommendations on Information Technology and Cyber Security.
• Compared to today, the secure bank of the future will use more machine-learning technology and systems to proactively prevent potential breaches and data loss. So, banks must ensure  proactive prevention, and more unique layers of defence to protect what the banks value the most.

So it is more than obvious now that the cyber vulnerabilities have massive global implications, so banks needs to push for global rules on such issues otherwise our banks will be on tenterhooks whenever ransomware - like cyber attacks take place.