Ransomware threats to banks escalate to 64%

Security breach costs trust for banks and customers.

As ransomware attacks on financial services surged from 55% in 2022 to 64% last year, the banking sector faces pressure to enhance security measures without compromising customer experience. 

Troy Le, Head of Security Business at Verichains, said that the impact of security breaches on customer trust cannot be overstated. "In general, security impacts trust dramatically for banks and customers," Troy explained. 

He outlined the dual fallout of cybersecurity incidents: direct operational costs such as investigations and repairs, and long-term consequences like brand damage and increased customer acquisition costs.

Troy identified three primary concerns: the sophistication of malware and ransomware attacks, insider leaks, and vulnerabilities introduced by third-party vendors in the digital banking ecosystem. 

"We're seeing the advancement in the sophistication of these attacks," Nguyen stated, emphasising that attackers are exploiting the weakest points in the banking supply chain, often due to inadequate protection on the client side.

Troy highlighted the significant challenges banks face in securing digital banking platforms as they integrate more third-party vendors, making the system more susceptible to supply chain attacks. He noted that insider threats, both intentional and unintentional, further compound these security vulnerabilities.

Addressing the balance between system security and user convenience, Troy discussed solutions that enhance security at the client side without detracting from the user experience. Verichains, for example, offers a client-side security solution that operates transparently, ensuring that banking apps are protected without impacting the end user's interaction with the app.

"Our solution has zero impact on the user experience," Troy remarked, illustrating the potential for security measures to protect sensitive information and communication channels effectively without inconvenience to customers.