Cause and Effect: If you build it, will they come?

July 23, 2014
/   Spotlight

Many financial institutions assume that digital banking is lucrative because the most valuable customers happen to bank online. While there is certainly a correlation between online bankers and higher profitability, quantitative evidence suggests that...

Fast Facts: Student Loans

January 22, 2013
/   Insights

The Financial Services Roundtable recently released another iteration of its Fast Facts, reliable, bullet-point research about issues facing the financial services industry. Topics span TARP, Dodd-Frank, insurance, lending, retirement savings and more.  Below are some updated Fast...

Intuit 2020 Report: The Future of Financial Services

April 11, 2011
/   Insights

Today, Intuit released the latest edition of the Intuit 2020 report, Intuit 2020 Report: The Future of Financial Services, which identifies and examines four key trend areas that will  transform the financial services industry...

The Top 10 Trends in the Digital Banking Industry

December 18, 2013
/   Spotlight

2014 is rapidly approaching and as the year wraps, the Digital Insight team has pulled together the top 10 trends in the digital banking industry based on data and trends from studying financial institutions....

Small Business: Perception vs. Reality

November 21, 2012
/   Insights

In the most recent election cycle, like most others before it, the one sector of the economy that got the most attention was small business.  This is the future, we were told by every...

Making Banking Fun: Gamification in Financial Services

August 5, 2013
/   Insights

Recently, the Banking.com team sat in on American Banker’s webinar, “Gamification in Financial Services: Five Proven Ways to Get an Edge,” which shared how leading brands in financial services have applied gamification to reach...

Technology M&As: The Beats Go On

May 29, 2014
/   Insights

The ongoing fascination with Apple’s $3 billion purchase of Beats Electronics is entirely understandable, because it’s a cool story. However, it also says a lot about what’s going on between finance and tech.

What We’re Reading

May 5, 2011
/   Spotlight

Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below. Virtual Banking Worlds Provide Tangible Lessons American...

Financial Literacy Month: How are you celebrating?

March 22, 2013
/   Insights

With April approaching, it’s almost time to kick off Financial Literacy Month! Strongly supported by the United States Congress and the Financial Literacy and Education Commission, Financial Literacy Month aims to promote the importance...

Given the targeted activism of hackers who have seen quick successes in massive hacks, now more than ever, banking security has been questioned.  The latest reports of hacking of crucial customer data happened with Sony while JP Morgan Chase saw a devastating hacking episode. The trust that people have in banks comes in question even when a minor discrepancy is seen in a bank’s standards of security. And here we are talking of complete hacks that could jeopardize millions of dollars.

Banks have become extra secure regarding the use of money transaction protocols and the manner in which people are handling different security protocols within the bank. It has been predicted that digitalization of banks and personal data is what is increasing risks and making banks vulnerable too. From websites which report bank and broker reviews to experts in security technology, many have the same prediction around money transfer online: the risks are now higher.

Here are five detailed ways you can avoid banking security risks:

1. Train employees and customers.

Many experts in bank security claim that many fallacies happen even in the highest secured protocols due to lack of knowledge and an overall negligent attitude in using the processes. It is the duty of the management and employees to familiarize themselves and their customers on the required protocols and the significance of each step. Even simple steps like updating or changing passwords every fortnight is a compulsory aspect of corporate and commercial banking firms.

Furthermore, significance of security protocols on mobile devices must be clearly shown to customers. Also, simple precautionary steps like using mobile banking services through reliable routers and Internet Service Providers (ISPs), would significantly help the bank secure its transactions and also not expect trails to be left behind for hackers to cash in upon.

2. Implement stronger protection.

While customers can do their part, banks can also ensure that the Structured Query Language (SQL) end of their servers open up only to recognized ISPs to minimize hacking. Maximum breaches have been detected at the SQL portal of the server and banks need to work on adding more structures around this amount of information – whether it is just customer details or funds transfer.

Internet of things is not something we need to fear, we only need to be ready for the new improvisations and the challenges that hackers create around it to safeguard the money of our loyal customers.

3. Embrace chip and pin integration.

Essentially an addition to the traditional EMV card system, chip and pin integration has been the most awaited innovation of 2015. While customers are looking for added layers of security, they are slow in picking up the new mode of card payment. Now that the industry is fully introducing chip and pin card payments, banks need to think of probable hacking protocols possible in this new system and lock the process enough to avoid a major crash.

4. Leverage behavioral analytics.

Customer behavioral analytics are important to show who could be a probable hacker trying to gain access to a particular account or a major pathway. Updated records of the new customer profiles and limited access to services for customers who have not crossed a minimum space of time is very much important to help the banking officials prevent major online break ins.

5. Request government support and high tech processing.

Having complete high tech back up from the local government and federal bodies would help banks secure sensitive information. Working around hacker profiles and probable target protocols would help secure banks against future attacks alongside avoiding low tech breaches, password hacks and insider phishing incidents to a great extent.

While these five considerations are important it’s crucial to remember that with every new security protocol added to the field of banking technology, hackers start looking for ways to break it. This calls for extreme pro-activity on part of banks.

Alex Richardson is a Harvard graduate and a marketing and technology expert working with WebHawks Inc. He is based in California, from where he writes to share his thoughts on technology and business development across different marketing fraternities. Catch up with him on LinkedIn for more updates and well researched articles.

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Compelling voices and contributed content from around the web

James W. Gabberty

Gabberty is a professor of information systems at Pace University in New York City. An alumnus of the Massachusetts Institute of Technology and New York University Polytechnic Institute, he has served as an expert witness in telecommunication and information security at the federal and state levels and holds numerous certifications from SANS & ISACA.

Brad Strothkamp

http://www.forrester.com/rb/analyst/brad_strothkamp

Marisa Mann

Marisa Mann brings over 15 years of experience in consulting and financial services industries to the Solstice team, working on large scale enterprise initiatives across many technologies, including specializing in the digital space – Internet and mobile. Mann is passionate about mobile and the endless possibilities for the enterprise, delivering business value through strong brand recognition and driving to excellence in the consumer experience. Prior to Solstice, Mann worked at JP Morgan Chase, Diamond Management and Technology Consultants, Washington Mutual, Inc, and Accenture.

Zachary Ehrlich

25-year-old writer, and as a native San Franciscan, I am unreasonably loyal to Bank of America, if only for their superhero-like origin story, involving the 1906 earthquake and Italian fruit vendors.