Security

Improving banking security

Even though it is heavily spelt out by regulators and others, the digitalization of financial services comes with increased security risks, even as it improves services and operating efficiencies.

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October 8, 2024 by Mark Aldred — Head of Sales, Auriga

Even though it is heavily spelt out by regulators and others, the digitalization of financial services comes with increased security risks, even as it improves services and operating efficiencies.

This year, the 2024 Global Financial Stability Report from the International Monetary Fund (IMF), said the financial services sector is highly exposed to cyber-attacks, with nearly one-fifth of all incidents affecting the industry, and the market seeing $0.5 million lost from cyberattacks. So, it is of utmost importance for banks to ensure that they are protecting their infrastructure.

What security threats do banks and customers face?

Many of today's threats are sophisticated, according to the latest INTERPOL Financial Fraud Assessment. In Europe, there has been a rise in online scams like investment fraud and phishing. Cybercriminals are also targeting mobile phone apps more frequently.

Going even further, Financial crime-as-a-service (FCaaS), a new cyberattack method is on the rise. With FCaaS, for a fee to another cybercrime gang, cybercriminals can deploy complex attacks without needing the know-how or any advanced technical skills. This method of attack has been increasing since the pandemic and has continued to become more sophisticated. Consequently, this has enabled cybercriminals to operate even more efficiently and on a global scale.

However, even with all of the known cyberattack methods and the rise of new threats, 56% of central banks or supervisory authorities across 51 countries globally do not have a national cyber strategy for the financial sector. This poses a grave issue which must be solved.

Filling the banking security gap

ATM operators are always looking to raise the game on cybersecurity. For example, 5B — Transacciones y Transferencias, S. A., Latin America's largest ATM network, who manage over 2,600 ATMs in Guatemala, with 25% of these devices belonging to bank branches, sought out a resilient cybersecurity solution. They needed an offering which continuously monitored operations to prevent any threats, and ensured the security and stability of the entire ATM network across all locations. Additionally, making sure that the attack surface is minimised, whilst maintaining the uptime of their ATM network.

As well as this, it is important that if any changes are needed to be made to the ATM's hardware or software, it should be authorized before any action is taken. This is to ensure that all configurations are done correctly, and it does not compromise the security of the device.

To meet these requirements, 5B deployed a single comprehensive platform and centralied banking security solution for ATM and ASST devices.

The solution provided:

• Continuous monitoring and detection of suspicious activity, to protect endpoint devices 24/7.
• Uses fully encrypted hard drives, which ensures software and hardware integrity.
• Is based on Lookwise TECH, which has been specifically designed to unify protection for devices across locations.
• Enables financial institutions to create strong and resilient security offerings and incident response plans, which are scalable and can flex depending on the situation.

Through adopting a cybersecurity solution, 5B was able to optimize the uptime of their entire ATM network, reaching 98.4%

As cybersecurity threats continue to rise for banks and other financial services institutions, having a proactive approach ensures that banking software, hardware and infrastructure is protected, and that services can continue for customers.

About Mark Aldred

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Auriga

Auriga is a top international software solutions company, specialized in end-to-end systems that integrate the various delivery channels used in retail and internet banking.

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