Cyber-attacks on banks highlight need for advanced security systems

Traditionally, banks spend most of the budget allotted to security on the purchase, operation, and maintenance of video surveillance equipment. However, the criminals of today don't necessarily show up with a mask and a gun in hand anymore, they can tiptoe in and out of the system and, in many cases, not get caught at all using the internet.

The banking world today has never been more different than before. Owing to the convenience afforded by both the internet and smartphones, a rising number of people and enterprises are opting to do their do their financial transactions online via digital banking, instead of lining up at the banks.

According to a 2015 report released by BBA, a trade association for the UK banking sector, banks experienced an industry-wide six point decline in branch transactions in 2014. On the other hand, internet banking, especially mobile banking, experienced a huge increase in use. The report even stated that money transfers, amounting to sums of approximately US$3.2 billion, is being carried out each week using banking apps.

Bank Cyber-attacks are on the rise
To answer this growing demand for digital banking, banks have been increasing its internet-based services and online data storage. Unfortunately, the resulting digital connections has also become an attractive target for criminals who try to take advantage of this to gain access into the bank's systems.

It appears that these types of attacks are on the rise. Websense Security Labs, a cyber security company, recently reported that the incidence of attacks made on financial service institutions are four times higher than that of companies involved in other industries and this is definitely reflected in the news.

In 2015, Kaspersky Lab reported that a multinational cybercriminal team was able to steal approximately one billion dollars over the span of two years. They did so by hacking into more than 100 banks in 300 countries, including ones in Russia, Japan, and the U.S.

Another case just happened earlier this year when HSBC's online banking website became the target of a cyber-attack. The denial of service (DoS) tactic used flooded the website with more traffic than it can handle and drove it offline. Commonly used by online criminals to conceal an attempt to hack into the system, it also resulted in much inconvenience as it locked customers out of the system for hours.

The reach of these attacks are also becoming more widespread. Modern criminals are not only after the money in the bank, but also its confidential data; thus, targeting both the bank and its clients. Clients that may include other establishments or retailers, whose systems can then be hacked next, using the information that the cybercriminals have obtained from the bank.

The Importance of an Advanced Banking Security Solution
Today's banks face challenges on both fronts: physical and digital. Hence, banks and security companies alike should be aware of the importance of creating a comprehensive solution that can deal with both threats. Both IT and physical security should be factored into the design of security systems for these institutions, providing security from the outside and the inside as well.