Banking Article, Banking Finance 2021, Banking Finance June 2021

Banking Cyber Defence trends to protect Customer Interests

Brief Introduction:

The face of banking system has been changed to unexpected levels with the innovations of technology and adopting the same by Banking industry to provide most convenient banking to their valued customers on 24*7*365 basis.

With the same advanced phase, robberies also replaced with physical to digital,  termed as Cyber frauds. As per experts talk,  Cyber crime and payment fraud cost $6 trillion in first nine months of this year, 2020.

Banks are in a process to use advanced techniques and technology to intensify security levels to combat cyber frauds to protect Customer interests and moreover Nations’ wealth.

Broadly we can classify cyber frauds as

Identity fraud occurs when thieves use stolen Social Security or passport, Aadhar numbers to create a synthetic identity, which is then used for fraudulent transactions.

Digital account fraud  refers  to   taking  over  a   real     person’s   Legitimate account to launch bot and malware attacks, and is often run by human firms but also automated processes.

 Payment fraud includes credential theft, chargeback and other threat methods during payment authentication or dispute.

Common  Techniques to defence :

Essential and Common techniques to fight against all varieties of cyber frauds by Banks :

  • Internal corporate policies
  • Educating Employees towards Cyber Threats
  •        Harden the Machines Regularly
  •        Increase Customer Awareness
  •        Examining third-party services


Real Scenario :

Well, Even after implementing above all at Bank end, Customer end, Employee end, Third Party end,  but practical  difficulties involving in remembering of different critical passwords by customers, SIM swapping technology, Security vulnerabilities in different Apps using by Customers giving a way to fraudsters to steal the valuable data/ reputation of Banks and Money of the Customers.

Advaned Techniques :

To overcome these,  and protect the Customers  interest as well as reputation of an Organisation, Banks  come in all new innovative advanced  techniques like :

  • EMV Chip Based Cards to obsolete Skimming and Cloning of Cards.
  • As more and more customers are using mobile devices, banks must also deploy verification techniques like mobile-based transaction verification and dynamic device authentication.
  • Virtual card, where every transaction gets a single use account number — making fraud much less common.
  • Enter one-time-passcodes — delivered via text or email at the point of sale — to authenticate certain transaction types
  • Not allowing “PIN bypass” for all types of merchants.
  • Facility to register more than one mobile number to get alerts/OTPs to customers. This enables to get more than one OTP to different mobile numbers based on transaction criticality.
  • Splitting card – request and payment-approval duties among several program administrators is another effective safeguard.

Present Scenario :

But With the revolution in Broad band services/ speed of Internet access Customers are able to use  IoT (Internet over Things).  These devices may increase the network’s vulnerability to large-scale multifactor  Cyber Attacks.  So, merely setting of complex usernames and passwords, OTPs, different mobiles, Single Use Account Number is not enough as hackers are constantly innovating means to crack confidential credentials. Banks should ensure that a most advanced level of authentication is required to secure financial transactions of Customers to protect their interest and gain trust over electronic transactions are safe with this bank.

Future and most coveted defence steps :

Biometric Authentication :

  • Biometric Authentication  of Customers like finger Print/Retina or     Palm etc.,. will reduce the risk of Cyber Crime transactions

User Behaviour Analytics(UBA) :

  • Banks should deploy advanced techniques that detect cyber crime on the basis of the patterns detected in website navigation or transactions. These could include facial recognition, fingerprint

Big Data Analytics :

  • With Machine learning a detailed profile of each customer build up like where and when they normally transact, their normal range of counterparties, the ways they typically access the bank’s systems and the usual size of transactions, customer’s geolocation, the device, web browser and type of webpage, the domestic or international destination of any payments, whether the payee is new or previously known, and so on coupled with a range of other variables. So, with this built up template every transaction that takes place on their accounts can be compared and evaluated automatically.

AI Based Technology:

  • With the help of Artificial Intelligence(AI Technology) without human intervention can distinguish a real user or a fraudster – whether human or robotic doing the transactions and can curtail the fraudulent in real time.

 Combined Approach :

  • No single security technology may yield desired results to foolproof a Cyber transactions. So, Banks need to use a  combination of several techniques to combat cyber crimes like Biometrics, Machine Learning (ML), User Behaviour Analytics(UBA), Artificial Intelligence (AI).

Looking Forward :

Now technology based banking is inseparable and Banks are looking forward to implement latest defence  technology to safeguard Customer interests/money, even if there are any technical deficiencies at customer end  or disclosing sensitive information like card details, OTP etc., to fraudsters in a way of  smishing / vishing / phishing / pharming by customers.  This way banks are going ahead to attract and retain the customers.

customers are looking ahead to make their choicest Bank/s, which provide strong Cyber defence technics, which protect or mitigate the risk eventhough there is a lapse at their end.

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