Banks and Their Legal Obligations to protect Against Cybercri

There are a couple of main reasons as to why banks are often the victims of hackers. Firstly, criminals often want to access the personal account details of consumers. This not only gives fraudsters use of other people's money, but also offers them with the information they have to acquire access to other accounts the individual may have. Secondly, hacking right into a bank's computer can cause widescale business disruption. Large organisations are targeted, causing inconvenience for the company and a large number of customers. The time and resource needed to appropriately manage and rectify a cyber-attack are able to place immense strain on a company, impacting the organisation's capability to carry out its day-to-day duties.

The methods by which criminals can gain hold of private information are varied and financial institutions should be aware any weaknesses in their organisations. For example, personal information and account data could be leaked by rogue individuals, or attacks can be executed by individuals internal systems of the bank, like the personal computers and IT infrastructure.

Since GDPR legislation was introduced this past year, businesses happen to be encouraged to rethink their data protection policies in order to ensure their systems are as robust as they possibly can be. Even just in the time before GDPR, banking institutions focused a lot of cash on securing their IT infrastructure and honing their internal security processes. However, in a world where technology is playing an increasingly-large role, it is crucial that systems are always updated.

Vulnerabilities within the supply chain must also be looked at. Regardless of how advanced a bank's cybersecurity is, should there be weaknesses in third-party supplier’s IT infrastructure, then access can still be attained towards the main bank's data. Because of this, before entering into any contract having a third-party supplier, suitable compliance checks and research should be carried out.

However, sometimes the data leaks can be brought on by consumers themselves there happen to be many cases of individuals falling for another scam from their money through fake emails requesting funds to become transferred. These emails look entirely legitimate, and even probably the most careful of people could be lured into giving the people behind these scams access to their cash.

Training and awareness are essential with regards to combatting cyber-attacks. Both internal employees and also the general public have to know the risks and types of scams that exist. GDPR legislation makes data protection and information security courses more accessible for employees in all sectors there has been a push for all employees, to be more proactive about data protection. More junior personnel in many cases are the first the avenue for call for consumers who fear there's been an attempt to gain access to their data unlawfully. It is particularly important these personnel know the correct protocol if a person continues to be unwittingly scammed. Educating the general public to understand the indicators, so they can contact their bank as soon as possible can also be an important part of tackling data breaches before they get out of hand.

Regardless of methods careful financial institutions are, breaches and cyberattacks can – and will – still happen. If your are to happen, customers must be informed at an initial phase if there is a possibility that their personal data continues to be compromised. Many banks have processes in place for such a situation to make sure that it's completed correctly as well as in a way that causes very little panic as you possibly can, however as recent news articles have shown, a sluggish approach can cause lasting damage to the institution's consumer-facing brand.

Attracting anger in the Information Commissioner's Office, and from the public, due to the situation being handled poorly can hugely damage a bank's industry and consumer reputation. The banking sector does not work without consumers' trust. Although difficult following a breach, it is crucial this trust is maintained, otherwise both new and prospective customers will be lost.

All organisations, not just banks and financial institutions, must be fully conscious of data security. Having knowledge of vulnerabilities internally, as well as educating the general public, is vital. The threat of monetary penalties in the Information Commissioner's Office should a cyber-attack be mishandled, and also the lasting reputational damage that may arise, ought to be enough to make sure cybersecurity remains given serious attention.