Why Cyber Security is Important in the Financial Industry

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The financial sector is among those industries that are highly vulnerable to theft and fraud. And in this day and age of internet prominence, the industry has to deal with countless cyber frauds not to mention hacks into servers that contain their client’s personally identifiable information (PII).

Since more and more individuals and companies throughout the world are performing most of their financial transactions online, the risk of a security breach has increased and continues to do so, day by day. Below are some reasons why cybersecurity in the financial industry is of utmost importance.

  1. More People Are Going Cashless 

Gone are the days of needing to go to the cash machine in order to make a purchase. We are now living in a cashless society where customers rely on credit cards and mobile phones to shop and pay their bills. While going cashless is a good thing, this can also lead to a greater risk of a data breach since digital systems are not immune to online fraud.

Going cashless could mean having to access bank accounts using mobile apps. Unfortunately, some people have minimal security on their mobile devices and this makes it even easier for hackers to attack. Furthermore, scammers are now using sophisticated technologies to steal customer’s data and their system has now become even more organized. In fact, it’s now possible to buy credit card details and PIN codes on the darknet market.

Thus, the government has urged financial institutions to ensure the safety of their customers’ online transactions by adopting the PCI security standards. When it comes to this, recruiting the services of cyber security experts is paramount.

  • More Online Checkouts

When shopping online, you will be required to provide your details to the website where you are shopping from. This is an opportunity that cyber hackers are taking advantage of. They would hack into these shopping sites to steal sensitive information, such as the customer’s name, complete address, contact numbers, and credit card numbers.

Once hackers have access to the customer’s information, they can use the card to make hefty amounts of purchases. This could cause a huge financial dent into the customer’s account and could ruin the reputation of the website where the information was taken from.

Hiring a financial accountancy expert can help protect e-commerce sites in this respect from account cyber-attacks. They are highly skilled and possess the knowledge required to address potential issues that could arise from online shopping if money is being skimmed from the attack. Finding the right accountant, with the right skills, is a complex job for any business and is an important decision, which got right can save a lot of money. Using an accountancy and financial recruitment agency in order to get the right candidate.

  • More Opportunities to be Cyber Hacked/Attacked

As more and more people are now going cashless and would perform most of their financial transactions online, the opportunities to be cyber hacked have also increased. Not only will this affect the customers, but cyber attacks can also harm financial institutions. There are cases when hackers hold hostage sensitive data and will only release them if the institutions will pay them thousands of pounds. Aside from the financial loss, these institutions could end up losing the trust of their clients.

There are many ways in which investing in cyber security can help banks and other financial companies. Carrying out a security audit, installing firewalls and anti-virus software on computers, implementing multi-factor authentication, and coming up with effective security solutions to address data breach.

The financial industry is evolving all the time, alongside user trends and it’s up to companies to keep up and keep assets safe as today, the consequences of cyber-attacks on businesses are fatal.