Financial markets today are transforming and inching towards the complete digitisation of operations. Security threats, therefore, have shifted from conventional threats to more intense forms. The Covid-19 pandemic fuelled a massive increase in online retailing. In the bulletin released by the Reserve Bank of India (RBI) for March 2022, India’s digital commerce transactions expanded 30% in 2021, 760 basis points faster than the global growth rate. While online transactions have become an essential aspect of the Digital India drive, the number of recorded online banking fraud instances has skyrocketed. Thus, governments and organisations must be more vigilant in developing and upgrading cybersecurity strategies to combat these dangers.
What is cyber security? What is the need for cybersecurity in digital banking?
Cybersecurity works on securing vital components of the technical system and confidential data from digital threats. Cybersecurity, also known as IT security, is intended to prevent attacks on associated systems and applications from within or outside an institution.
Cybersecurity in digital banking plays a crucial role in the following ways:
- The primary goal of cybersecurity in digital banking is to safeguard customers’ resources. It could be financial data, personal assets, etc.
- Today, consumers utilise digital money, such as credit and debit cards, GPay and other digital wallets. Cybersecurity makes such transactions safe and secure.
- Customers are not the only ones affected by cybercrime in digital banking; even banks get affected while trying to restore data. As a result, banks have to ensure tight cybersecurity measures to combat security breaches.
- Cybersecurity in digital banking assures the safety of a customer’s confidential data, which, if exposed, could result in a slew of issues such as identity theft.
Cybersecurity is critical for the development of the digital economy!
As we transform from the physical world to the online realm- with innovative business concepts, the threat of security increases tremendously. Although technology has blurred the boundaries between countries and wrapped businesses into one with buyers and sellers, it has also resulted in some significant maladies. We all leave digital footprints at some point, which are exposed to various consequences if businesses mismanage them.
A better digital economy can be woven in no time if all of these factors are considered to secure a solution. And for the growth of a better and safer digital economy, cybersecurity is a critical component. Here are 5 points that will justify our argument-
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Cybersecurity protects against various forms of malware.
The scope of cybercrime is expanding all the time. Hackers frequently use attacks like ransomware, social engineering, malware, and phishing to ambush victims online. However, much as we improve our security features and educate people, some aspects will remain prone to new threats. Cybersecurity VPNs, strong firewalls, and enhanced malware protection can protect digital economies.
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Cybersecurity aids in preventing unauthorised access
Hackers frequently gain unauthorised access to a system, resulting in security breaches. However, companies can defend themselves against such attacks by assembling a good squad of cybersecurity professionals capable of creating strong passwords, designing Two Factor Authentication (2FA), Multifactor Authentication and building physical security practices, tracking user activity, and endpoint security.
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Data can be safeguarded using cybersecurity
Encryption keys distort data to ensure only authorised users can access it, using a technique to convert ordinary text characters into a ciphertext. By hiding the details of sensitive data via encryption or tokenisation, file and database encryption solutions serve as an ultimate layer of protection.
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Enhances recovery period after a security breach
An action plan should be ready for data breaches and establish a systematic disaster restoration context. The first step to ensure this is creating a decent and comprehensive offline backup, as ransomware and cybercriminals cannot access offline backups. Possessing recorded centralised logs prior to the occurrence aids forensic investigators in determining the underlying problem.
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Cybersecurity, along with machine learning and data science, will boost performance
Analytics is a critical component in maximising cyber security. A new set of threat detection has emerged, capable of storing and analysing massive amounts of cybersecurity information in real-time. Banks and other financial institutions must use technology to detect and remove unethical behavioural patterns and activities. Next-generation endpoint security will also be more advantageous. Next-generation endpoint security employs advanced artificial intelligence (AI), machine learning, and a deeper union of networking and security features to deliver highly extensive and adaptable defence than conventional endpoint security solutions.
In today’s online world of the digital economy, one can never ignore cybersecurity. Increased digitalisation has made the banking industry increasingly vulnerable to hacktivists and cyber threats. Therefore, an impeccable cybersecurity system is a must to not jeopardise the security of clients and financial institutions along with their data or funds.
Although the government is implementing aggressive measures to combat cyber-attacks, they are also adapting to emerging technological developments such as cryptocurrencies and blockchain. As a result, the necessity for cybersecurity as an element of the standard strategy grows, aiming to detect and prevent assaults in real-time rather than correcting the damage.
