According to Info Security Magazine, “About 83% of consumers believe their banks are secure from cyber attack and trust it with their money and most sensitive data too.” It is interesting that the majority of consumers have this level of trust with their banks, as just one in five banking executives are highly confident in their ability to detect a breach. With this in mind, it may be asked: Why do consumers trust their banks so much?
Consumer’s trust is rooted in the false belief that their bank can be 100% secure. “While banks are evolving to combat the sophisticated threat cybercriminals pose, public understanding of the threats and challenges remains low,” said Mike Turner, global cyber security COO at Capgemini.
In January 2012, the Federal Financial Institutions Examination Council created a set of new rules that banks and financial institutions are required to follow to protect their customers. One of their main recommendations was to educate consumers about fraud and the steps they can take in helping to prevent it.
Financial institutions have a layered security approach that includes multi-authentication, which may ask customers to enter second security code or carry a key fob. There is also a defense-in-depth approach, which assesses risks throughout an organization’s website. In this approach, the first layer of security is devdigitalice identification in which the user’s device is detected. The second layer is device reputation management, incorporating geolocation, velocity, browser language, associations, time zones, etc. Challenge questions may also be presented like: “When were you born?” or “What’s your mother’s maiden name?”
Can you protect yourself?
You can’t prevent a cyber attack on your bank, but you can take steps to protect your own accounts. If you notice any unusual activity, even if it is small, you should report it. Banks do not have to report to its’ customers when a cyberattack has occurred, but the Financial Conduct Authority does expect banks to notify customers who were affected.
Fintech is an emerging solution
There is an obvious need for new solutions in securing customer data, which is an area where fintech can help. Implementation of blockchain in banking could be a breakthrough in data security, as it is considered “tamper proof.” Blockchain allows all parties to a transaction to follow it through a secure network, with no need for third-party verification. According to a Synechron/Tabb Group survey, 55 percent of financial services executives surveyed think that over the next 10 years, blockchain will be an extremely important technology in financial services.
The integration of APIs can also be a breakthrough for data security. Banks are increasingly offering online service that help customers track and manage their finances, which creates a lot of customer data. Banks are actively developing ways to facilitate secure data transmission through application programming interfaces (API), which allow software components to communicate and exchange information. APIs provide a secure connection that has data aggregators, a read-only portal, to retrieve data from a customer’s account that guarantees the customer has control of their data. Zikher is based on API platform that provides the highest level of security for customer data by layered encryption at rest and end-to-end encrypted tunnel protocols while the data is traveling. Our platform can help banks in ensuring the safety of customer data in lending transactions.
Author: Whitney Besser
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