As digital banking continues to undergo rapid transformation keeping customer data safe has become a top priority for banks and fintechs globally. In 2024, here are five key steps organisations can take now to safeguard against security breaches.
1. Implement Robust Encryption Protocols
Banks should prioritise the use of strong encryption algorithms to protect sensitive customer data. This includes encrypting data at rest and in transit, ensuring that even if a breach occurs, the stolen information remains unreadable and unusable.
Reflecting the need to continually stay on top of encryption protocols, the Monetary Authority of Singapore recently warned that the security of financial transactions and sensitive data financial institutions process could be at risk, thanks to quantum computers that can “break some of the commonly used encryption and digital signature algorithms.” It is not unusual for flaws to be found in encryption protocols so staying on top of this should be an ongoing priority.
2. Multi-factor Authentication
Banks can enhance data security by implementing multi-factor authentication (MFA) for customer logins. This involves combining something the user knows (e.g., a password) with something the user has (e.g., a unique code sent to their mobile device), and something the user is (e.g., biometric authentication). MFA adds an extra layer of protection against unauthorised access.
One of the notable trends in the MFA market is the emergence of the four-factor authentication model, set to revolutionise the sector with its advanced authentication parameters and impregnable security design. The global MFA market is expected to expand from USD 15.2 billion in 2023 to USD 34.8 billion by 2028. This growth is steered by factors such as the escalating number of security breaches and sophisticated cyberattacks, resulting in financial and reputational losses.
3. Regular Security Audits and Penetration Testing
With the increasing adoption of digital banking services and the interconnected nature of financial systems, the potential impact of a security breach is significant.
Banks should conduct regular security audits and penetration testing to identify vulnerabilities in their systems. Audits help banks identify vulnerabilities, ensure compliance with regulatory standards like PCI DSS and FFIEC, and maintain customer trust by safeguarding sensitive financial data and transactions from cyberattacks. By proactively assessing their infrastructure, banks can identify potential weak points and address them before they can be exploited by cybercriminals.
4. Employee Training and Awareness
Banks must invest in comprehensive training programs to educate their employees about data security best practices. This includes raising awareness about phishing attacks, social engineering techniques, and the importance of strong passwords. Not only can regular training sessions can help employees stay vigilant and minimise the risk of unintentional data breaches.
5. Continuous Monitoring and Threat Intelligence
Banks should implement advanced monitoring systems that constantly analyse network traffic, detect anomalies, and identify potential threats in real-time. By leveraging threat intelligence platforms, banks can stay updated on the latest cyber threats and proactively defend against them.
Speaking to the Financial Times recently, Sergey Lozhkin, principal security researcher at Russian antivirus software company Kaspersky, and former vice-president of cyber security operations for JPMorgan Chase flagged the threat of “Zero-day” security vulnerabilities where an organisation literally has zero days to fix the problem. In such cases, advanced monitoring systems can be particularly effective, as can automated tools that decrease the window of opportunity for the attacker, simultaneously supporting the old proverb that prevention is better than cure.
