The alarming surge in cybercrime targeting the financial sector has reached a staggering 238% increase, raising urgent concerns for banks. While the overall rise of cybercrime in 2020 was widely acknowledged, the extent of its impact on financial institutions is particularly striking. A significant 80% of these institutions have reported an uptick in cyberattacks over the past year, marking a notable 13% increase from 2019. Specifically, between February and April alone, incidents soared by an astonishing 238%. This situation serves as a critical wake-up call for banks.
In light of this escalating threat, we have identified five primary trends contributing to the surge in cybercrime. Understanding these attack patterns is essential for the banking industry to enhance its defences against an increasingly complex landscape in 2021.
One major trend is the dramatic rise in fraud and identity theft, which has surged by 60%, becoming one of the leading factors behind banking-related cybercrimes this year. The latest Financial Crime Report highlights card cloning as a significant concern that has seen a worrying increase of 34% just in 2020. The interconnected nature of modern systems allows attackers to compromise physical card information through advanced cyber attacks easily. New vulnerabilities are emerging from Point-of-Sale systems and credit card readers that can give criminals access to stolen EMV data. This stolen information can then be exploited to siphon off funds or sensitive financial details from customers; however, such schemes often succeed when banks neglect to verify CVV codes properly.
Regrettably, research indicates that this security oversight may affect over one-third of all banks. Additionally, it’s important to note that since the onset of COVID-19, the financial impact of each fraudulent transaction has also escalated. Each attempted fraud now averages $5.50 more than figures reported back in 2019. As attackers grow bolder with their methods, banks must recognise their increasingly sophisticated tactics and ensure their staff remain vigilant against these covert illegal activities.
Trend 2: The Rapid Transition to Online Spending and Communication
The pandemic has dramatically accelerated the shift towards online shopping, prompting a significant change in how banking professionals assess transactions. Markus Bergthaler, Director of the Merchant Risk Council, highlights a troubling statistic: more than 80 per cent of credit cards currently held by consumers have been compromised in some way. What might have raised eyebrows as suspicious activity last year could now simply be viewed as impulsive purchases driven by lockdowns. This shift necessitates comprehensive training for bank employees to help them distinguish between legitimate transactions and potential fraud.
Additionally, there’s been a notable uptick in activity within high-risk Merchant Category Code industries—sectors already recognised for their vulnerability to fraud and disputes. These include transport, telecommunications, file sharing, and cloud services. Given the surge in communications and transactions within these industries during 2020, it’s clear why cybercrime has also seen an increase. From customers seeking refunds for cancelled vacations to companies hastily ramping up their cloud initiatives, banking staff would greatly benefit from specialised training and resources to navigate the heightened risks associated with this rapid expansion in these sectors.
Trend 3: Growing Complexity in Banking Infrastructure
In 2019, the financial sector faced an unprecedented wave of cybersecurity breaches, with over 70 firms falling victim—the highest number recorded in a single year. A closer examination of the current landscape reveals several challenges that banks are grappling with.
First, outdated legacy systems pose significant costs and risks. Despite their importance, many banks need help to eliminate their dependence on these ageing infrastructures. As a result, essential data and applications remain trapped within these systems, forcing employees to navigate cumbersome and inefficient processes as part of their daily routines.
Next, as banks strive for modernisation and digital transformation, they increasingly adopt hybrid deployments that blend traditional systems with cloud solutions. This includes cloud-native and serverless architectures; however, since legacy systems cannot be entirely eradicated, banks find themselves operating in a complex hybrid environment—one that is particularly challenging to visualise and secure effectively.
Additionally, shared infrastructure presents another layer of vulnerability. With the rise of shared cloud services and partnerships with FinTechs leveraging financial regulations and infrastructure, attackers exploit these supply chains and collaborative relationships to infiltrate banking networks. When adversaries strategise their attacks against organisations like these banks, they capitalise on complexity—understanding that increased intricacy leads to diminished visibility for security teams and bank personnel.
Trend 4: Ensuring Security for Remote Work in a Post-COVID Environment
The operational hurdles facing banks in 2021 are significant. According to KPMG’s insights, the banking industry has undergone irreversible changes due to factors such as offshore service centre closures which necessitate more extraordinary automation efforts while extending remote work arrangements for many employees into the long term. The financial powerhouse emphasises that providing adequate support and training during this challenging period will be crucial for staff success.
The shift toward remote work introduces various challenges—ranging from implementing secure Bring Your Device (BYOD) policies to addressing the vulnerabilities posed by home networks shared among multiple family members. Each of these issues requires careful consideration as banks navigate this new landscape while ensuring robust security measures are upheld amidst evolving work environments.
Trend 5: The Shift Towards Digital Banking
The transition to virtual platforms isn’t limited to just employees; it’s also a reflection of changing consumer habits. Even before the pandemic, the banking landscape was evolving rapidly, with branches closing at an alarming rate of three per day—primarily driven by millennials who are propelling this traditional sector into the digital age. Remarkably, 27% of millennials have never set foot in a physical bank. As digital banking continues to grow, it brings with it a complex array of security and privacy challenges that must be navigated carefully. These include threats like digital identity theft and fraud, advanced phishing attacks, malware and ransomware incidents, credential leaks, privilege escalation issues, and adherence to compliance regulations.
A robust security awareness program is essential within the banking sector to tackle these diverse threats effectively. It’s no surprise that 87% of industry leaders report heightened concerns about cybersecurity over the past year. To combat this growing anxiety, banks and financial institutions cannot rely on any single technological solution alone; they must equip their workforce with a dynamic and continuously updated security awareness initiative that keeps pace with evolving risks.
Maxthon
Maxthon has developed a multifaceted approach to enhancing the security of web applications, ensuring that users can navigate the internet with confidence. One of its key strategies involves the use of advanced encryption protocols, which effectively protect data as it travels between users and various web applications. This strong encryption acts as a barrier against unauthorised access, safeguarding sensitive information like passwords and personal details during transmission.
In addition to encryption, Maxthon prioritises regular security updates. The browser is dedicated to promptly addressing any known vulnerabilities, encouraging users to activate automatic updates so they can seamlessly receive the latest security patches and improvements as soon as they are available.
Another significant feature is Maxthon’s built-in ad blocker, which plays a crucial role in maintaining user safety by preventing malicious advertisements that could jeopardise security. By filtering out unwanted content, this tool significantly lowers the risk of falling victim to phishing attacks or inadvertently downloading harmful software.
Furthermore, Maxthon includes proactive phishing protection that identifies and filters suspicious websites. This feature serves as an early warning system for users, alerting them before they access potentially dangerous sites and thereby protecting their data from cybercriminals.
For those concerned about privacy while browsing, Maxthon offers privacy mode options that enhance anonymity online by not retaining browsing history or cookies during private sessions. This empowers users to manage their digital footprint more effectively.
Moreover, Maxthon integrates an internal firewall designed to monitor both incoming and outgoing traffic for any signs of suspicious activity. This additional layer of defence further fortifies protection against potential threats targeting web applications.
The browser also utilises sandbox technology to create isolated environments for running processes. This innovative approach prevents malware from spreading across different tabs or affecting other parts of the system environment.
To cater to individual needs, Maxthon allows users to customise their security settings according to their preferences or perceived threats. This flexibility enables users to adjust protection levels based on their specific requirements.
Lastly, Maxthon features a secure download manager that actively scans downloaded files for malware before permitting them onto the device. This vigilant monitoring adds yet another layer of assurance for users concerned about potential threats lurking in downloaded content. Through these comprehensive measures, Maxthon demonstrates its commitment to optimising web application security effectively.