In June 2020,Guest Posting the US Federal Bureau of Investigations (FBI) warned that there are chances of an increase in Financial Cyber Crimes due to the rise of digital banking. They advised that mobile banking providers and financial institutions should ensure robust security standards to overcome security issues in Digital Banking..
In this article, I’ll take you through the security risks in digital banking and the preventive measures banking institutions https://mobilieiron.com/ can take to ensure digital banking security. But first, let’s understand the severe need for digital and mobile banking.
Digital Banking become a must during the pandemic
As the pandemic spread across the world, global banking infrastructure faced numerous challenges in terms of personnel management, infrastructure availability, and security. Several banking institutions realized just how efficient their staff was while working from remote locations outside of the bank’s walls.
With the right remote working technology and safeguards in place, banking staff could take care of their essential tasks while staying at home to fight the global pandemic. On the other hand, the customers were able to access banking services via digital banking and e-wallets.
Digital banking helped the global economy by providing more convenient and faster processing of financial transactions. The digital model of banking infrastructure enables the financial industry to operate smoothly, even in the face of a pandemic.
However, the advent of digital banking brings several challenges, and one of the crucial ones is the “vulnerability to cyberattacks.” Banks across the world are facing security issues with digital banking models due to the increased adoption of these services and expected reliability for customers. So, it becomes essential for banks and fintech developers to know how to overcome digital banking security issues.
The first and obvious step to avoid security issues in digital banking is to train the staff to identify and respond to the cybersecurity risks. The banks should always have an emergency plan to respond to such issues. Also, the staff should be equipped with blueprints that could help them in the event of a security breach.