Cybersecurity is growing out to be one of the greatest challenges for the banking sector internationally. Cybersecurity’s susceptibilities are growing even further as FinTech and consumer’s banking activities are becoming digitised via tabs, smartphones, computers and the rise in trend of online shopping.
The impact of this is usually underrated as it not just causes monetary loss but the confidence customers have on financial institutions and markets also drops low and the cost to repair this void is very high. Financial institutions and banks must therefore implement certain resources to identify, prevent, evaluate and report the cyber crimes and frauds in order to secure the interests of financial markets effectively.
Sim Swap Scam
This is the latest scam which is affecting thousands of people across the globe. To define the Sim Swap Scam, it is a distinct kind of account seizure fraud which exploits the vulnerability in the two-factor authentication where the second step or factor is a call or SMS made to a mobile phone. The fraud mainly aims to exploit the ability of a mobile phone to impeccably port a mobile number to a new destination of SIM. This is usually done where the user has either lost or got their phone stolen.
The fraud holds no novelty, in fact it has been there for decades however the volume has remained low. It now appears that the particulars of this con have spread with the organised criminal community of the world. Only a few fraction of victims hold the courage to report the crime as it has been reported that 85% choose not to on the basis on present estimations, have seen their financial accounts of any type to suddenly stoop down to a zero. A 60% increase in the former complaint levels have been reported now.
What financial institutions must do?
Financial institutions must be aware of cybersecurity’s nature which is a mix of defense, flexibility and assurance. Defence calls for direct recognition of cybersecurity breach with an appropriate and timely action. Flexibility or resilience is the framework’s ability to reinstate regular operations with minimal damage. Assurance is established on incorporating defense and assurance in regular banking operations. Having the knowledge if this combination in essential for an effective control system. Banks have crucial subcontracting needs for many equipment and services. But many banks lack the appropriate protocols and systems to oversee the third-party operations. Banks should assume responsibility to keep an eye over such IT partners to guarantee cybersecurity.
A culture of awareness regarding this menace of cybersecurity must flourish among all. The initiatives of regular awareness with the help of a cyber security specialist for consumers, are essential to broadcast the principles of conducting secure POS, ATM, internet and mobile banking transactions. Sensitivity of cybersecurity must also be instructed to the employees having charge of IT business operations. Password sharing and other similar activities must be subject to strict action. In addition, keeping people aware of such scams would add to the benefits.
Cybersecurity is not undistinguished anymore. In fact it stands as an epic menace which needs strategic rethinking. This is bringing it out of IT store and treating it as rather a separate risk. Adopting such approach is critical to safeguard the banking scenario in this digitised era.