Cybersecurity and the Financial World: How Cybercrime Becomes a Threat to Financial Systems
The world is becoming ever more digital, and there’s not much we can do to prevent it. It’s a necessary change if we want to live a convenient and happy life. However, with it comes an array of problems. One of these problems can cause millions of dollars in damage. This growing problem is known as cybercrime. Cybercrime is growing, and there are numbers to prove it.
There is a growing number of cybercrime cases in the U.S. alone. During the year 2020, there were about 1.3 million identity theft cases. This isn’t the only cybercrime that exists. Millions of people also have their files breached, while many companies get their data stolen from them. The cost of cybercrime is also rising. When a company gets hit by malware, its price can reach $2.5 million. Many more have to pay a lot more to fix the mess these cybercriminals have made.
The statistics can’t tell any lies. Cybercrime is indeed a national security threat, and everyone can be a victim of it—even those who stay back from the limelight. However, the financial sector is one of the most targeted industries globally. It’s a sector where a country’s economy is stored. It’s where billions of dollars are located. So money is a great incentive for many organized hackers, and why they love targeting banks and other financial institutions.
How Are We Fighting Back?
Cybercrime is a serious concern among every citizen in the world. However, unless you’re an essential person earning millions of dollars, there’s a low likelihood that you would become a victim of cybercrime. If you keep yourself informed about how hackers get into your computer and personal profile, then you should be fine. But what about the banks that store billions of money? Are the financial institutions responsible for keeping our livelihood?
As stated earlier, there is a growing problem with the financial sector. They are the main target of these attacks because money incentivizes attackers. However, this doesn’t mean that the financial sector isn’t fighting back. They’ve doubled their efforts during the last few years, and now it’s harder than ever for these organizations even to breach their systems.
Cybersecurity is the first step toward fighting back against cybercriminals. Among the many sub-markets in the industry, digital banking is the one that’s investing billions of dollars into cybersecurity. They are at the forefront of the industry, they are the ones dealings with consumers, and it makes sense that they are the most secure.
Retail banks are also investing millions of dollars into cybersecurity, alongside traditional lending companies. As a result, they have to update their software to ensure that investments and loans are protected from hackers and malware’s prying eyes.
Individual financial institutions are also trying new advancements in cybersecurity. For example, many are hiring ethical hackers to test their networks through a process known as network penetration testing.
Essentially, these hackers try and breach the network of a particular financial institution to see loopholes that hackers can manipulate. Ethical hackers can then fix these loopholes to ensure that the network stays safe from unwanted visitors.
Cloud software is also becoming an excellent solution for storing files. The cost of a single ransomware attack is estimated to be around $100,000, with more prominent companies paying up to millions of dollars to get their files back. However, as the Cloud becomes more secure and efficient than ever, thousands of companies rely on them to keep their files safe, especially those coming from the financial sector, where every file is worth its weight in gold.
These are just a few ways the financial sector is fighting against cybercrime. More advanced methods that utilize blockchain and big data to protect clients’ files are part of this multi-billion dollar scheme to protect people’s money.
Lastly, international relations play a significant role in cybercrime. If these relations break apart, then the looming threat against the financial sector can continue growing.
Diplomatic relations play a big role in cybercrime. The more it deteriorates, the more a country becomes a target. It’s part of every country’s responsibility to ensure that cybercriminals are kept in check. Politicians should also ensure other countries that they won’t be a victim of cybercrime.
However, when everything else fails, it’s up to the country to become self-sufficient against cybercrime attacks.
For example, a country like Singapore has a cybersecurity strategy. This strategy is all about innovation and the improvement of government networks. This particular strategy is all about developing their cyber-infrastructure, and this has been known to be an effective deterrent against cybercrime.
The financial sector is the main target of cybercrime. Thankfully, the sector is fighting back with its own set of creative ideas. Hopefully, they can keep this problem at bay so our financials can stay away from the hands of these criminals.