Virtual Banking and Security: How to Stay Away From Hackers
- 26.09.2022 10:45 am
Virtual banking is taking over the world rapidly. There were 1.9 million individuals around the globe who used virtual banking in 2020. And that number is probably even bigger right now. This latest technology is convenient, available at all times, and aims to make banking easier for younger generations. But of course, there are also some major cybersecurity challenges virtual banks face every single day.
Both customers and virtual banks need to be familiar with the two most common ways of gaining unauthorized access to financial accounts – phishing and identity theft. Working together to eliminate these threats is the key to successful virtual baking. Users should be more knowledgeable about phishing, download antivirus software, and complete malware removal often. Virtual banks could implement methods of blocking an account when identity theft is suspected.
If you are interested in virtual baking but are unsure if you could trust them with your money, here is the list of cybersecurity challenges these banks face daily and how they deal with them:
Cybersecurity challenges for virtual banks
Even though it is super popular among the younger population, virtual banking is still finding its footing and facing various challenges, including cybersecurity and outdated regulations. However, as far as we can see, virtual banks are managing these obstacles quite successfully so far.
Minimizing cyber threats
Cybercriminals target every industry in the world, but banking is their absolute favorite due to the possibility of financial gain. Virtual banks must stay on top of the cyber threats by applying the latest cyber security technologies. Just a simple system breach could be fatal for an up-and-coming virtual bank. Even if nothing was stolen, clients will likely flee because of the lack of security.
What can you do to boost the security of your system and servers? Make sure you don’t give cybercriminals a chance to create a breach. All employees need to be knowledgeable about cybersecurity and update their software regularly, especially if they prefer to work out of the office. Employees should know all the tricks used by hackers, such as phishing, spoofing, and more. Malware removal and detection should also be a top priority.
Following the rules made for traditional banking
The world of banking has a set of rules and regulations that need to be followed. Since virtual banking is a new concept, those rules do not specifically cover it yet. Regardless, virtual banks are required to obey the law, no matter how unusual it might be in the age of technological advancements.
Authentication for customers
Cybercriminals have different methods of gaining access to bank accounts, and virtual banking is doing its best to prevent unauthorized logins. Virtual banks will send their customers a one-time code they have to type in. But here’s the catch – they don’t have to use their keyboard! As you might already know, key loggers are a popular way of stealing login information. But virtual banking is one step ahead.
Some virtual banks are going one step further and offering their clients biometric identification. It means only an account owner will have access to it through fingerprint or face recognition. Biometrics is the future of cyber security because it will eliminate unauthorized logins for good. Therefore, it is great that banks recognize the importance of this new technology.
Sending alerts to customers
Virtual banks are exceptional when it comes to monitoring suspicious activity on accounts. They are known to send messages and emails the moment they recognize an unauthorized login attempt or any unusual transactions. It allows the account owners to act quickly and block everything if they are not using the account. So if you are into virtual banking, always keep an eye on your notifications.
A VPN is slowly becoming a go-to tool for cybersecurity, and it can do wonders for both virtual banks and their clients. The powerful encryption that is offered through this tool enables employees of a virtual bank to log into the system from anywhere. So if your staff is working from home, encourage the use of a VPN. Clients will also find a VPN useful because the encryption prevents man-in-the-middle attacks.