With rapid advances in Information Technology (IT), institutions engaged in the financial services sector have actively begun to utilize systems using open network as typified by the Internet. IS or IT Audit is “the process of collecting and evaluating evidence to determine whether a computer system safeguards assets, maintains data integrity, allows organizational goals to be achieved effectively and uses resources efficiently.”
Primarily, vulnerabilities in the Bank’s Information System include:
1. Improper system/network design,
2. Programming errors, weak or inadequate physical/logical access controls
3. Absence of or poorly designed procedural controls
4. Lack of back up/contingency procedures
5. Ineffective employee supervision, and management controls
6. Lack of awareness among employees etc.
Cyber security is critical for every business. But, for banks, the stakes are even higher. Financial institutions hold important data that may be siphoned off for indulging in fraud or various other criminal activities. Security measures are therefore indispensable for Banks. Such measures should be designed in a manner to detect and prevent attempts to steal consumer data.
Financial threats are still profitable for cyber criminals and therefore continue to be an enduring part of the threat landscape. From financial malwares that attack online banking, to attacks against ATMs and fraudulent interbank transactions, there are many different attack vectors utilized by criminals. Most of the banks or financial institution’s operate with the use of technology, including the Internet. Without a good cyber security measures in place, your bank’s sensitive data could be at risk. Here are some biggest threats to a bank’s cyber security :