Page 43 - Banking Finance February 2025

ARTICLE

Combating Cyber

Threats in Banking:

Prevention, Detection,

and Response

Dr. Deepak Kumar
Mechanisms Union Learning Academy C&P
Chief Manager (Research)
Union Bank of India, Lucknow

In the digital age, the Banking sector has undergone a remarkable transformation, leveraging
technology to offer seamless and efficient services to customers across the globe. However, with
this advancement comes an unprecedented rise in cyber threats that pose significant risks to
financial institutions, their customers, and the global economy.

Introduction: The Nature of Cyber Threats in Banking:

In the digital age, the Banking sector has undergone a Cyber threats targeting banks are varied and evolving,
remarkable transformation, leveraging technology to offer leveraging sophisticated technologies to breach security
seamless and efficient services to customers across the systems. Common cyber threats include:
globe. However, with this advancement comes an Phishing and Social Engineering Attacks: Cybercriminals
unprecedented rise in cyber threats that pose significant manipulate bank employees or customers into divulging
risks to financial institutions, their customers, and the global sensitive information like login credentials, often through
economy. The importance of combating cyber threats in fake emails or messages.
Banking cannot be overstated. A single security lapse can
Malware and Ransomware: Malicious software can be
erode customer trust, result in substantial financial losses,
deployed to infiltrate bank systems, steal data, or hold
and invite regulatory scrutiny.
systems hostage until a ransom is paid.
Distributed Denial of Service (DDoS) Attacks: By
As Banks serve as custodians of not only financial assets but
overwhelming a bank's online systems with a flood of traffic,
also vast amounts of confidential information, their
attackers can cause significant downtime and disruption.
vulnerability to cyber risks makes them prime targets for
malicious actors. Consequently, the industry is compelled to Insider Threats: Employees or contractors with malicious
adopt comprehensive mechanisms to prevent, detect, and intent or inadequate security practices pose internal risks
respond to these threats effectively. This essay explores the to banking systems.
nature of cyber threats in banking and delves into the Advanced Persistent Threats (APTs): These are prolonged
prevention, detection, and response mechanisms that and targeted attacks where intruders infiltrate a network
institutions employ to safeguard. to steal information over time.

38 | 2025 | FEBRUARY | BANKING FINANCE