How Critical Is Creating a Cybersecurity Strategy in the Banking Sector
By Danni White
Cybersecurity is essential for every non-profit and profit organization, especially in the banking sector. Banks, investing companies and other organizations keep confidential customers’ data, information and money that need to be kept away from cyber attackers. To prevent the data and money from getting stolen, financial institutions and banks should have a robust and fully protocolled cybersecurity strategy.
What is a cybersecurity strategy in layman’s terms? How can it be implemented into the banking sector? Let’s find out.
What Is a Cybersecurity Strategy?
A cybersecurity strategy is basically an improvised plan of actions to increase the resilience and cybersecurity of the corporate sector, business sector including many business organizations. Cybersecurity strategy plays an important role in protecting the national services and the infrastructures.
In a cybersecurity strategy, priorities and national security objectives are established and achieved in a particular timeframe for the safety of national treasure.
Creating a cybersecurity strategy is crucial for any business organization because the cybercrime economy is continuously growing at a rapid pace and each year, this market enjoys at least $1.5 trillion of profit.
The government of the US invests more than $15 billion in national cybersecurity strategy each year. Apart from that a lot of money is invested by the government to handle cybercrime matters that are sensitive in nature.
However, it is not given importance by small businesses. Small businesses spend less than $500 in cybersecurity each year. According to a Juniper Research report, this has led to several major cybercrimes.
Here is how critical it is creating a cybersecurity strategy for the business sector, the corporate sector, and the banking sector.
- A Good Cybersecurity Strategy Prevents Breaches
Data and information breaches are one of the most common threats to the banking sector as it ultimately leads to a leak of data and loss of customers’ trust. Sometimes, it is very hard for a business organization to recover the lost trust due to a weak cybersecurity strategy.
A good cybersecurity strategy not only prevents security breaches but also helps to gain customers’ trust. Cybersecurity strategy in the banking sector is only about communicating with the public upfront and to take preventive measures to ensure the security of customers’ private data and digital assets.
This can further be improved by integrating cybersecurity with artificial intelligence.
- Banks Can Incur Penalties for FDIC Non-Compliance<l/i>
Penalties for the FDIC noncompliance can be very quick for the financial institutes or the banks. It isn’t just abrupt for the banks financially but also in ever-increasing oversight. By maintaining the compliance standards, banks and financial institutes stimulate to focus more on its cybersecurity strategy.
When a bank creates an effective cybersecurity strategy and stays compliant, it ensures its consumers that it is meeting with the national and international security consensus standards and protecting the data and money rightfully.
- Consumers Can Lose Money and Time
We will explain this with an example. For instance, there’s a data breach in a bank due to a weak cybersecurity strategy. Consumers would lose money and time both. The damage that occurs to the banks due to an attack or data breach is full of pressure, hard to recover, stressful and time-consuming.
The customers of that particular bank need to go through a lot of phases such as checking the statements, transactions, canceling the cards and keeping their eyes open for any complications due to security breach in the banking system.
- Consumer Data Is Sensitive
When a security breach occurs in a bank, a consumer cannot sleep in peace knowing that his financial and personal information is stolen and can be in the wrong hands. That information can also be used against him. Hence, the data is sensitive and needs to be protected in every way possible.
A good cybersecurity strategy is important for the banks as the customers’ information can float on the darknet. In the same way, a weak cybersecurity make cause any business to fall foul.
So, it is important for the banks and other financial institutes to create a game-changing cybersecurity strategy to protect consumers’ personal data and information.
The business organizations of the corporate sector and the business sector should also comply with the international cybersecurity standards in their cybersecurity strategies to ensure that customers’ information is safe with them.
An effective cybersecurity strategy does not only open up the business sector’s flank to various types of cyber attacks but also helps the business organization to create opportunities allowing the employers to engage with or to cater to the needs of their consumers in a better way.