Running head: SECURITY CHALLENGES IN BANKS AND THEIR PREVENTION
Security Challenges in Banks and Their Prevention
SECURITY CHALLENGES IN BANKS AND THEIR PREVENTION
Currently, technology allows people to meet their needs faster as well as efficient
banking transaction. However, the banking industry is one of the sectors that is mostly affected
by security challenges and hacking. First, hacking refers to the act of assessing one location or
system without the consent of the possessor. Hackers access these places or systems unlawfully.
An intrusion to a system means that the security features that are utilized in the structure have
been compromised with. Hacking can be undertaken by an individual with security knowledge
and can be performed for several reasons. The two primary reasons why hackling occurs in many
banks is to gain access and change personal data and get away with cash from the monetary
organization. The fault, as well as letdown in banks that results from unauthorized entry to the
system, has various impacts. First, hacking results into decrease in the performance of the system
of a bank. Secondly, clients, as well as customers of a bank that has fallen a victim of hacking,
lose trust towards the financial institution. Clients and customers lose such kind of confidence
because of fear of losing their cash as well as resources in the banking institution. In recent
years, hackers in the banking industry have invented new tactics to evade put security measures
(Hinde, 2004). In these years, banks have fallen victims of hackers and lost vast sums of money.
Therefore, there is a need to tackle these security challenges and hacking facing the banking
industry and causing the sector to lose vast amounts of money.
In the banking industry, cybercrime attacks are happening more repeatedly than ever. The
issue of cybersecurity is defined as a one-way war. This is because bank hackers persistently
attack the institutions while the businesses can only try to defend their assets. Due to this fact,
the only ways banks can reduce their institutions from attacks from hackers is by making them
jump through many hoops before reaching the confidential information. In the banking industry,
criminals quickly familiarize to the changing environment, and continuously observe newly
published vulnerabilities as well as manage to exploit those opportunities fast than bank security
services can install updates. In 2015, Kaspersky Lab, Russian cybersecurity, estimated that over
100 banks around the world had been hit in a cyberheist. According to the cybersecurity firm, it
was determined that the amount the affected banks could have lost to hackers was $900 million
(Singer & Friedman, 2014). In the current days, the bank industry has continued facing attacks
on interbank transfers, card processing management of ATMs, e-banking as well as payment
gateways. The array of targets is wide. If bank hackers have the needed knowledge as well as
technical means, access to those systems can provide them with more revenue than fraud can
cause against bank customers. The hackers who steal money from the bank system penetrate the
infrastructure of the institution, which is often well-guarded. This means that they ought to have
the needed skills to attain their targets. Despite the improvement in security measures of the
banking industry, criminals still make their way in, and the media continues to report new bank
cyber-attacks as well as thefts daily.
It is essential for any bank to investigate the paths and tactics that cybercriminals use to
attack the banking industry. This would ensure that banks come up with a more secure system
and encounter security challenges as well as prevent hacking in the banking industry. One of the
first steps attackers take is doing a thorough survey as well as a preparation on how to undertake
their attack. They face the task of collecting information about their intended bank. Security
systems of banks can easily detect external resources of gathering information. They evade been
SECURITY CHALLENGES IN BANKS AND THEIR PREVENTION
caught at this initial stage by resorting to passive methods of getting information. For instance,
these criminals identify domain names as well as addresses possessed by the targeted bank.
Hackers also engage unscrupulous bank employees at this stage, and they are prepared to let out
confidential information concerning the bank for a fee. Hackers require various types of
information to undertake their criminal activities. Some of the information needed by them
include; information concerning network perimeter systems as well as software of the bank,
workers of the bank including their email addresses, telephones, positions as well as names.
They also need to have information concerning the business processes of the bank. Some of the
preparatory actions undertaken by hackers include mounting malicious software for the software
as well as OS versions util...
Sign up to view the full answer