Digital Banking & Cyber Crime

Digital technology in the 21st Century has revolutionised economic and social interaction. It has transformed business, the way we educate ourselves, buying and selling products and services. Also, financial services and banking.

Internet connectivity and use is growing and the number of individual users worldwide is now over 5 Billion, which is over 63% of the global population and continues to grow. This has enabled a Fintech revolution which is transforming how we spend money and share data between buyers, sellers and their intermediaries. 

The implementation of innovative technology has made an opportunity for criminals to find ways to exploit and steal from users. This is especially so in the financial services sector where numerous new online account services are available. At the same time, many new Digital Banks have emerged which operate entirely online. Criminal hackers are certainly fully aware of these new digital services to take advantage of insecure financial data systems. 

Digital banks face rapidly escalating threats as technological developments in cyber crime make it easier than ever for financial criminals to commit fraud.

Cyber attacks are becoming more sophisticated thanks to artificial intelligence (AI) and self-learning malware. Phishing attacks meanwhile prey on vulnerable and naïve customers, and for cybercriminals, ransomware is the most lucrative type of attack. Unfortunately, governments and police services have responded slowly to this new, 4th Industrial Digital Revolution. And many of their operations do not have the IT skills and technology to deal with these new crimes. As the crimes, threats and actions frequently take place outside of policing’s national boundaries this cyber crime inadvertently, now has similarities to ancient piracy, where national governments could claim that the crime and criminals were outside their national responsibility, even if they, where sometimes one of the governments funding the pirates. 

The global cost of cyber crime continues to increase and the intensification of these criminal action hackers means that the cost of cyber-crime could reach $10.5 trillion by 2025. 

Cyber crime costs include damage and destruction of data, stolen money, lost productivity, theft of intellectual property, theft of personal and financial data, embezzlement, fraud, post-attack disruption to the normal course of business, forensic investigation, restoration and deletion of hacked data and systems, and reputational harm.
However, in the last decade Western governments are often claiming that their national crime rate is reducing, but this is reporting is not taking cyber-crime into the national picture, which if it did, then national and global crime would be seen to be significantly increasing.

Additionally, it is in the nature of large commercial firms for cyber responsibilities to be split between different departments, which often cause difficulties in understanding and prioritising threats and responding to them. 
More widely, the inter-connectedness of the financial sector means that successful attacks on smaller firms or third party supply chains can significantly affect the wider market. In these circumstances vendors, suppliers, customers and our other colleagues are all critical components of a successful business, but come with risks, and successful attacks against these often perceived weaker links could have an indirect but significant impact on the chain. 

Cyber threat actors have a global reach and cyber threats need to be considered through a global lens. 

High-profile Data Breaches & Vulnerabilities 

Banks are not reporting the full extent of cyber attacks to regulators for fear of punishment or bad publicity as some bank executives and providers of security systems and they are not alone in their reluctance to disclose every cyber attack.

According the British government data, of the five million fraud and 2.5 million cyber-related crimes occurring annually in the UK, only 250,000 are being reported.

In November of 2016 five Russian banks had been under intermittent cyber-attack for two days, said the country's banking regulator. The state-owned Sberbank was one target of the prolonged attacks and hackers sought to overwhelm the websites of the banks by deluging them with data in what is known as a Distributed Denial of Service (DDoS) attack.

SWIFT, the messaging network that connects the world's banks, says it has identified new hacks targeting its members, and it is warning them to beef up security in the face of "ongoing attacks." It did not name the banks affected. The warning follows cyber attacks on banks in Bangladesh, Vietnam, the Philippines and Ecuador in which malware was used to circumvent local security systems, and in some cases, steal money.

  • An attack on Bangladesh's central bank yielded $101 million.
  • Ecuador's Banco del Austro was hit for $12 million.

As cyber threats are an ever-present threat and continue to evolve, it is essential for banks, police and government to build their cyber-risk analysis part of their business and organisations knowledge so that effective mitigation strategies can be developed and put in place. 

In 2022 there is a real requirement for more effective sharing of IT and Fintech know-how  across the government, police and banking sectors is required. Most cyber crime originates from China, North Korea and Russia where it can be difficult to identify hackers and where local police are unlikely to apprehend them.

Banks will need to work collaboratively with governments and industry bodies to share effective strategies. There also needs to be continued work to educate the public on preventative measures, but the buck stops with the banks who will need to ensure they implement security models that ensure maximum protection for them and their customers.

TMB:    Int Accounting Bulletin:    Datareportal:    Cybersecuritventures:   Royal Holloway:     BBA

Cyber Crime Journal:      Refinitiv:     Guardian:    JICRAR:     Information Age

You Might Also Read: 

Cyber Security In Fintech:
 

« Apple Patches Serious Security Flaws With iOS Update
Understanding Fake News »

ManageEngine
CyberSecurity Jobsite
Check Point

Directory of Suppliers

Authentic8

Authentic8

Authentic8 transforms how organizations secure and control the use of the web with Silo, its patented cloud browser.

XYPRO Technology

XYPRO Technology

XYPRO is the market leader in HPE Non-Stop Security, Risk Management and Compliance.

CSI Consulting Services

CSI Consulting Services

Get Advice From The Experts: * Training * Penetration Testing * Data Governance * GDPR Compliance. Connecting you to the best in the business.

Directory of Cyber Security Suppliers

Directory of Cyber Security Suppliers

Our Supplier Directory lists 8,000+ specialist cyber security service providers in 128 countries worldwide. IS YOUR ORGANISATION LISTED?

Jooble

Jooble

Jooble is a job search aggregator operating in 71 countries worldwide. We simplify the job search process by displaying active job ads from major job boards and career sites across the internet.

Cigniti Technologies

Cigniti Technologies

Cigniti Technologies provides Independent Software Testing (IST) Services including software security testing.

Proact IT Group

Proact IT Group

Proact is Europe's leading independent data centre and Cloud services enabler. We deliver flexible, accessible and secure IT solutions and services.

Sentia

Sentia

Sentia is an IT and infrastructure firm, with focus on Outsourcing, IT operation and management, Hosting, Co-location, Network, and IT security.

Fair Isaac Corporation (FICO)

Fair Isaac Corporation (FICO)

FICO provides analytics software and tools used across multiple industries to manage risk, fight fraud, optimize operations and meet strict government regulations.

Database Cyber Security Guard

Database Cyber Security Guard

Database Cyber Security Guard (aka Don't Be Breached) informs Security Professionals and DBAs of Zero Day, Ransomware and Data Breach attacks within milli-seconds

Moxa

Moxa

Moxa is a leading provider of industrial networking, computing, and automation solutions for enabling the Industrial Internet of Things.

Keynetic Technologies

Keynetic Technologies

Keynetic focuses on developing cybersecurity solutions for Industry 4.0.

Start Left® Security

Start Left® Security

From Posture to Performance—The System That Improves How Software Gets Built.

OSI Security

OSI Security

OSI Security's primary services include penetration testing, security auditing, web application security testing and risk management.

ACI Learning

ACI Learning

ACI Learning - Training tomorrow’s industry leaders with formats for all types of learners in Audit, Cybersecurity, and IT.

Serbus

Serbus

Serbus Secure is a fully managed suite of secure communication, enterprise mobility and mobile device security tools.

CDS

CDS

CDS is a strategic change agency enabling organisations and businesses to create and build better services to meet the evolving needs of customers, employees and citizens.

D.med Software

D.med Software

D.med Software is a company with a focus on cybersecurity for embedded software and cloud applications for the medical industry.

Cyabra

Cyabra

Cyabra is leading the fight against disinformation. Our AI shields companies and the public sector by uncovering malicious actors, bot networks, and GenAI content.

Tria Federal

Tria Federal

Tria Federal is the premier middle-market Technology and Advisory services provider delivering digital transformation solutions to federal health and public safety agencies.

Cure53

Cure53

Cure53 offers classic black-box penetration tests (zero-knowledge) as well as white-box tests and code audits.