With the advancement in the digitized world and the financial sector, there is advancement seen in cyberattacks. Most people do not risk their money and now save it in banks or a financial institution to protect it.
The secure systems need to be updated regularly. The financial sector has always been the red target of cyberattacks. This sector needs support from the government and other security systems for protection from such attacks.
Almost all kinds of industries have faced cyber threats of some scale. But some industries, especially the financial industry, are targeted much more. The reason is that they have a direct link to money. Spammers can gain access to people’s information.
Cyberattacks are on the rise, and necessary measures should be taken. Therefore, the aim of all industries nowadays is to protect their clients’ information and have a solution for all possible cybercrime attacks.
What Happens If A Bank Has A Cyberattack?
The worst and dreaded outcome of cyberattacks on any financial sector is its abrupt closure or leakage of sensitive data. Many banks worldwide had to close down because of a destructive cyberattack. Data breaches are considered the biggest sin in such financial institutions.
Almost all banking systems have faced one or another form of cyberattack. And not so surprising is that the number of cyber threats is still increasing. Many specialists believe that one big reason for this increase in cyberattacks is the interconnectivity of banks, which increases cyber risk. When more banks share information and sensitive data, it becomes easier for cyber attackers to hack their systems.
As a consumer, you don’t have to worry much about your money going anywhere. Why? The law is there to protect you and your money.
According to most cybersecurity laws, the depositor’s money has to be protected in all cases, and they shouldn’t have to face any financial issues.
Financial Institutions That Have Been Hacked
While several financial institutions have been hacked, we have narrowed down the top data breaches of recent times:
First American Financial Corporation
This attack occurred in May 2019 due to a slight error in the website design and a small privacy lapse. The spammers could get their hands on 885 million financial transactions made to real estate agencies.
They also got their hands on sensitive information like the contract dealers’ names, email addresses, and phone numbers.
This data breach occurred in Sep 2017 and got notoriously famous around the globe. It is considered amongst the worst data breaches ever. This was nothing more than a disaster, as it affected more than 147 million people.
It is estimated that around 40% of the American population was affected. And what was the cause? Just mismanagement and too much compliance from the cybersecurity team. Several cyber threats were ignored and taken too lightly. As a result, the cyber risk increased, and the financial industry faced data breaches and a huge setback.
The names, dates of birth, security numbers, driving license numbers, and credit card details of these 147 million people were leaked. Equifax had to pay a rightfully $700 million fine applied by the government.
This data breach occurred in March 2019. It is estimated that 100 million credit card applications were exposed. This was a huge breach as it affected the people of the United States and Canada.
Highly sensitive data was leaked, including security, insurance, and account numbers.
After such a severe drawback, unfortunately, the company could not stand on its feet again. The amount of data breached and its impact have labeled this event as the most horrible data threat in the financial industry.
Are The U.S. Banks Under Cyberattack?
Cyber attackers always target U.S. banks. It was observed that the number of attempts made to hack this financial industry increased during the COVID-19 pandemic situation. The financial companies also reported receiving several security threats from unknown sources.
A U.S. banking firm has also reported that they could not protect themselves from a cyberattack where personal information, including the identity and social security numbers of at least 1.5 million people, was stolen from its computer in December 2021.
The biggest concern is that, even though U.S. banks are said to have the best security system in the world, their customers’ information is still under threat.
What Are The Cyber Threats To Banks?
Several cyber threats to banks and other financial industry-related companies include:
This is the oldest and most common cyber threat to any financial institution. The attackers can strike the database and gain entry into the important files, encrypting them and blocking the original owners.
The users can no longer use the system. The hackers then demand a lonesome amount of money for re-accessing. Ransomware attacks and threat have almost been there since the start, and there should be a lot more focus on preventing such attacks. The point of concern is that the number of such threats is increasing.
In this type of cyber risk or threat, hackers try to access the information stored in the cloud. The number of such attacks has risen as this is an easier and faster method to hack.
The banks need to look out for the security systems of the cloud and whether it’s functioning properly. There shouldn’t be any loopholes.
Supply Chain Attackers
This is a very cheeky method used to get access to customers. They target a software vendor and then send malicious code to the consumers, which might seem very original and honest but is 100% fake. Not only codes, but they make fake calls as well.
So as a customer, we suggest you ensure that the messages and calls you receive are from a trusted source and never share your details or sensitive information on-call with anyone. In case of any doubt, call your bank’s support system number.
Protection from cyber risks is becoming the top priority for financial institutions. The risk of data getting encrypted and leaked is not affordable by any financial industry. Several threats are received every day. These require protection and support from the government and security systems. There have been many cases in the past from which we can learn to protect our records.