Cybersecurity in Banking Software: Threats & Regulations

Advances in technology have brought many benefits to banking. Yet, they put security at risk. Personal and financial data are attractive targets for cybercriminals, so fintech companies must strengthen their protective measures. This article will analyze the main threats and regulatory norms helping you reduce the risk.

Top Cybersecurity Threats for Banking

Let's start with discussing the main threats to cyber security in banking.

Phishing Attacks

You must have heard about clone websites, which users visit by mistake through third-party services. Such systems copy real ones and even employ multi-factor identification. Phishing may be difficult for users to detect, so they simply hand over their credentials to cybercriminals.

Spoofing

Spoofing means that a criminal masquerades as a trustworthy individual or organization. This way, they hope to get sensitive information or conduct fraudulent transactions. If they succeed, they can redirect payment, deny service, or steal personal data. While that may seem very similar to phishing, the latter doesn’t always involve impersonation.

Distributed Denial of Service (DDoS)

A DDoS attack floods the site with fake traffic, exhausting server resources. Thus, the platform becomes inaccessible to real users. At the same time, attackers can use a DDoS attack to mask other dangerous actions by turning off security tools.

Ransomware

While banks encrypt data for protection, ransomware does so precisely for ransom purposes. Unless you pay the hackers, you won't be able to gain access to valuable information.

Data Manipulation

Hackers don't always steal data. Sometimes, they gain access and change it, creating huge consequences for the company. Such attacks are more challenging to implement, but they are also harder to detect.

Cybersecurity Regulations for FinTech

Today, there are many standardized requirements for ensuring the security of customer data. Some of them are mandatory while complying with others serves as proof of a brilliant reputation. Let's look at some popular ones:

GDPR. The General Data Protection Regulation (GDPR) regulates the way banks process EU citizens' data. It ensures customers have sufficient control over their personal information.
ISO/IEC 27001. An international standard for the security of information systems. It consists of policies and procedures that are important for your own safety and reputation as a reliable service provider.
PCI DSS. Payment Card Industry Data Security Standard (PCI DSS) is all about protecting customer data from unauthorized access, use, or disclosure. This compliance is mandatory for all organizations that interact with credit cards.
BSA/AML. Bank Secrecy Act/Anti-Money Laundering regulations help banks prevent money laundering, terrorist financing, or any other misuse of the US financial system for illicit purposes.
NIST. The National Institute of Standards and Technology (NIST) in the US sets 110 requirements for access control, authentication methods, security protocols, incident response, and more.

S-PRO creates not only innovative but also safe fintech products. Contact us to learn more.