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Cybersecurity in banking holds a critical value. Since the advancement of digital payments and digitization of the financial ecosystem, banks have become a primary target of cyber-attacks. A report by Cybersecurity Ventures estimates that the global cost of cybercrime will rise to $6 trillion a year by the end of 2023 and this was estimated before the COVID-19 pandemic took over the world and another report by Cybersecurity Ventures expects global cybercrime costs to grow by 15 per cent per year over the next five years, reached 10.5 trillion USD annually by 2025. The Federal Bureau of Investigation (FBI) has also stated that the instances of cybercrime have jumped by as much as 300% since the end of February 2020.
The rapid digital transformation in the past few months has significantly affected how cybercriminals operate. These changes will further impact the banking cybersecurity landscape in 2023. Moreover, the continuous change in technologies also implies a parallel shift in cybersecurity in banking. Here are a few cybersecurity trends in banking in 2023.
Addressing the security risks in digital banking platforms
There is a sharp increase in the adoption of digital banking by customers in the past few months owing to the global pandemic. Consumers are increasingly choosing cashless payment alternatives and transferring payments using digital banking platforms like mobile apps and web portals. But as the use of digital banking platforms is surging across the globe so are the cyber threats aimed at these platforms. The FBI has recently issued a public service announcement stating that the hackers could exploit new mobile banking customers by using several techniques, including banking trojans and fake banking apps. These applications and web portals create vulnerabilities such as insecure data storage, insufficient authentication, and direct code tampering that banks need to address. Thus, one of the top cybersecurity trends in banking would be to better address the security risks in digital banking platforms. So, banks are going to heavily invest in cybersecurity practices for mobile and web platforms to fend off cyberattacks.
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Identifying and preventing risks in third-party collaborations
The banking sector is, by the nature of its business, a highly interconnected sector. As a result, third-party vendors play a very important role in the efficient and profitable functioning of the banking sector. They provide innovative solutions for the banking industry. However, this gives rise to great cybersecurity risks as there are too many things to secure and monitor, and increased reliance on third-party vendors adds extra vulnerabilities. Sbanks must monitor or third parties and their cybersecurity practices. Banks need to examine their APIs and improve their gain a greater understanding, and bank security teams are going to strive to gain full visibility over the third-party infrastructure. Thus, identifying and preventing risks in third-party collaborations is going to be a huge cybersecurity trend in banking in 2023.
Artificial Intelligence for fraud prevention
One of the growing cybersecurity trends in banking in 2023 is AI for fraud prevention. AI for fraud prevention is Frauds are one of the biggest changes for the finance industry which results in huge losses each year. Since the early 2010s, major banks have used anomaly detection and AI techniques for detecting deviations and anomalies. But these strategies and technologies have evolved since, and today, in 2023, Artificial Intelligence is playing a crucial role in detecting payment fraud, loan fraud, and customer onboarding fraud. Cybersecurity experts and working on advanced machine learning models that can detect suspicious and fraudulent transactions in almost real time. AI technologies will also enable in-depth behavioural monitoring and individual profiling of customers that observe their behaviour and provides actionable intelligence to prevent risks and fraud. Thus, in 2023, AI technologies are going to play a greater part in fraud detection and prevention.
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Reducing security vulnerabilities in the adoption of advanced technologies
Cybersecurity trends in banking in 2023 are not just about protecting and addressing the vulnerabilities and threats in core functions or areas of banks, even the technology adoption is prone to vulnerabilities and risks. In 2023, advanced technologies such as IoT and 5G are expected to show their true potential to every industry, including the financial sector. However, these smart connected devices present a range of new risks and they could even be vulnerable to fifth-generation cyber-attacks (Gen V attacks). So, banks are going to take on a holistic approach to IoT security to protect them from a multi-vector attack that could infect their IT infrastructure, cloud instances, and endpoint devices.
Cybersecurity is not limited to IT industries, in this digital world, it is crucial for every business, especially for financial institutions such as banks. The banking sector’s ongoing digital transformation has caused the industry’s potential attack surface to grow, exposing them to increased levels of cyber threats. Thus, these are the cybersecurity trends in banking in 2023, and with the right tools, resources, and strategies, financial institutions can protect themselves from the rising risk of cyberattacks. At Intone, we understand the technologies and banking regulations that are now unlocking the banking value chain. Our team of global security specialists can deliver you a focused risk-based security strategy, operating model, and compliance plan that builds security from an intelligent infrastructure that is predictive. Thus, we provide the innovative expertise and capabilities needed to deliver the future of banking today.
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