Technology and the internet have undeniably become integrated into our daily lives. Customers’ behaviors continue to evolve and adapt to the technological progresses. In response, new technologies are developed to serve and accommodate customers’ ever-evolving needs.
A prime example is the invention of smartphone over a decade ago, which has completely transformed our ways of lives and increased people’s connectivity to unprecedented levels.
The banking industry, too, is undergoing massive digitalization, from the user-facing tools like mobile banking apps to backend infrastructure and essentially everything in between. These developments are the key drivers behind the convenience and productivity that we all enjoy today.
But, inherent to any invention, these technological revolutions come with their own form of risk: cyber risks. The more “digital” banks become, the more channels for potential points of attacks from cyber criminals, who are constantly evolving to exploit new loopholes. Even when these loopholes are identified and patches are issued, delayed updates could also pose potential risk.
Financial Institutions Hacking and Social Media scams
We have repeatedly witnessed that the various—and many times severe—cyberrelated incidents often revolve around financial institutions.
Some infamous examples include the Bangladesh Bank incident, the hacking of ATMs in Taiwan and various other countries, Target’s credit card data breach which resulted in data of 2 over 70 million credit cards stolen, Equifax’s data leakage in which the company was fined 700 million USD, and more recently the case of Capital One Bank in…