Understanding and Mitigating Today’s Banking App Threats

Over the past year, UK financial services reported an increase in cyber security breaches, a trend replicated globally. The sector has always been particularly attractive to cybercriminals due to the huge amounts of sensitive financial information it holds. So much so that threats have tripled in number compared to previous years.

Advanced technology has played a critical role in making such attempts more sophisticated and harder to detect. The shift to online and mobile banking has also enabled cyber criminals to target even more unexpected victims through apps. Spoof emails, fake app messages and voice based phishing are all on the increase.

The results of cyber-attacks are detrimental not just for the costumer but also for the bank. These extend far beyond the financial losses leading to operational disruption, customer dissatisfaction, reputational damage and regulatory fines. 

Having said that, it’s positive to see that many financial institutions are continuously adapting their systems to ensure that any potential threats are identified early on or in some cases predicted and eliminated before they even occur. The advancements of artificial intelligence (AI) and machine learning have tremendously supported in adding a more robust defensive layer. Banks like Starling in the UK are working on raising awareness of scams like AI voice cloning, given nearly half of consumers are not aware this type of scam even exists. 

But, as the threats continue to evolve so should the protective measurements banks take. Staying on top of how technology can support with that is therefore essential in keeping the customers and the bank secured.

The Threats Ahead

Cybercriminals find innovative ways to approach customers via their mobile phones and while some of them are well-known there are still others that are not as obvious but are equally convincing and harmful. 

For example, data breaches are the most common cyber threats where criminals gain unauthorised access to the customer’s app's data. This could be due to security flaws, leading to the exposure of personal and financial information of the user. Another well-known threat is phishing, where fraudulent attempts disguised as a person from the user’s bank aim to gather sensitive information including passwords, and credit card details. 

A less familiar threat that targets mobile banking users includes rogue apps. Cybercriminals build banking apps pretending to be legitimate to deceive users into downloading them and providing them with their personal details.

Finally, Application Programming Interfaces (APIs) that are not secure can easily be manipulated to gain access to backend services that the app interacts with. This leaves users vulnerable to data breaches.

Steering Clear of Trouble

Cyber threats take many forms that require tailored strategies to prevent them. But there are also various ways to mitigate fraudulent activities by leveraging technology. For example, AI and machine learning can be used to detect suspicious cases, alert the right personnel as well as manage the threat. The technology, which is constantly learning and adapting, improves risk detection while also reducing false positives.

When it comes to banking apps specifically, financial institutions should ensure that all security measures are considered including multi-factor authentication. This way the user’s identity will be more safely verified. Additionally, end-to-end encryption is key in ensuring that sensitive information does not get leaked and only the right people who have access to the endpoint devices are able to read the messages.

Finally, regular security audits provide transparency on the measurements taken and help the bank spot areas that need adapting. Similarly, it’s vital to make sure that both employees and customers are trained and educated on the threats and how to recognise and report them. A robust case management system that can adapt to changes in volumes and types of scams, routed to the right skilled teams to assist with rectification, and learn from patterns, can go a long way to minimising customer impact and staff effort. 

Although fraudulent activities are becoming more and more sophisticated, banks have an array of technologies available to help them protect their customers and themselves from any risks. There is no one-size-fits-all approach with cyber threat prevention, therefore it’s important to evaluate your needs and develop a strategy that best suits you. Collaborating with a reliable third-party-advisor and technology partner can support in identifying the best solutions for your requirements.