Impact of Cybercrime in Banking Sector

Proposal:

With the advancement in IT sector, cybercrime incidents have increased. Cyber thefts
are most commonly seen in banking sector as the attackers can get access to user’s
financial information. Insufficient cyber laws and advanced tools of hacking have led to
financial loss in the banks. Cyber criminals attack the financial transactions and
customers experience cash deduction from their accounts. There are different forms of
cybercrime such as phishing and malware. Phishing is the most dangerous cyber
activity as it steals the user’s personal information and user can be blackmailed by the
attacker for an exchange of money. With the emergence of digital banking, there is an
increased risk for banks and users to become a victim of cyber-attack. Bank employees
are not much aware of the cybercrime consequences, yet they play a vital role in
educating users about cybersecurity. Both, public and private sector banks train their
employees to combat the malicious cyber-attacks and make strategies such as financial
regulatory frameworks to avoid cybercrime issue. Though the banks have taken
preventive measures against cybercrimes, there is still a need to improve and
strengthen the banking system to protect customers and banks from loss of financial
data.

1. Banks need to back up the customer’s data regularly to avoid cyber thefts.
2. Banking sector needs to develop a security system were user account’s
password should be changed quarterly to reduce the risk of cash deduction.

Synthesis Matrix:

Articles Main Idea A Main Idea B Main Idea C

(Dzomira, 2014) Most of the electronic Involvement of all E-governance

 frauds are prevalent in
the banking industry due
to inadequate cybercrime
laws.
(Ali, Ali, One effect of cyber threat
Surendran, & is on the behavior of
users. Customers fear
Thomas, 2016) the loss of their financial
data while using e-
banking services.
(Rao, 2019) Digital culprits attack the
financial institutions the
most and reason behind
it is the monetary profit.
(Antonescu & Cybercrime is a growing
Birău, 2015) industry that affects
financial institutions the
most.
(Raghavan & Banking sector has seen
Parthiban, various forms of
cybercrimes including
2014) ATM and identity frauds.
(Santucci, 2018) Financial Regulatory
agencies have introduced
improved cybersecurity
standards for banks to
better recognize and
cope up with the sources
of systematic vulnerability
in the financial system.
(Boer & Financial sector has been
Vazquez, 2017) a largest traditional target
of cyber-attacks.
(Tariq, 2018) Banking sector faces
both direct and indirect
loss due to cyber-attacks
stakeholders to system should be
address the issue of strengthened to
cybercrime. prevent frauds.
Creating awareness
in customers about
existing cybercrimes.
Cybercrime has both, Much of the cyber
financial and non- threats are
financial implications. coming from the
emerging
countries.
Cybercrime has led
to huge financial loss
in the banking sector.
Use of cyber-risk Regulators can
management plans accelerate the
while taking new cybersecurity
investment decisions. process in
financial
institutions by
introducing new
cyber laws.
Corruption in Cybercrime and
transmission financial stability
channels and has inverse
financial data is the relation.
most common form
of cybercrime in
banks.
Financial institutions
needs to tighten the
internal security and

(Staal, 2015) Frontline Service
Employees provides vital
information to the
customers in the banking
sector and they must be
informed of how to
reduce cyber threats.
Financial institutions can
(Bouveret, use a quantitative
tractable framework to
2018) evaluate the cyber-risk in
the banking sector.
(Marshall, 2010) Banking sector is likely to
face high tech robbery by
cyber-attackers who are
finding new ways to
illegally access the
customer’s financial data
and rob the accounts.
Some common types of
(Bhasin, 2007) cybercrimes in baking
industry include phishing,
ID theft, spyware and
worms.
(Crisanto & Regulatory framework
Prenio, 2017) must promote cybercrime
awareness among bank
employees.
improve
cybersecurity
training.
FSE’s have little Employees that
knowledge about the have prior cyber-
consequences of attack awareness
cybercrime and there can possibly
is a need to spread protect their
awareness among organization and
them. customers.
Cybersecurity threats Financial
can be improved by institutions have
taking into more data about
consideration the cyber-attack
national security incidents than
constraints. others.
Financial institutions
without cardinal rules
of cybersecurity have
a negative impact on
their systems.
Banking industry Cyber laws are
uses some protective beyond the scope
methods to minimize of national
the risk of cyber- jurisdiction, which
attack. These is an issue in
methods include risk cybersecurity.
assessment,
implementation of
preventive tools and
development of a
response plan.
To reduce the cyber- Cybersecurity
risk, banks need to framework must
develop a response be in accordance
framework. with
organization’s risk
management
strategy.
(Reddy & Banking sector use Cyber attackers
Reddy, 2014) different cybersecurity directly attack the
techniques such as anti- bank transactions
virus software, malware and poses a threat to
scanners and firewalls to their business.
protect their financial
data.
Cyber regulations must A careless act of Most cybercrimes
(Leung, 2018) ensure that the banks customer can lead to in banks arise due
have a proper cyber a cyber incident, to human error.
resilience for responding therefore they must
to cyber incidents. be educated about
mitigating cyber-
risks.
(Bamrara, There is no difference
Chouhan, & between gender victim of
cybercrime and e-
Bhatt, 2012) banking.
(Perumal, 2008) Phishing is the most Customers need to
dangerous cybercrime contact with bank as
that get access to user’s soon as they get to
information fraudulently. know about
unauthorized banking
transactions to avoid
theft.
(Tunmibi & IT security is a primary In some countries
Falayi, 2013) challenge to e-banking like Nigeria, the
because customers banking industry is
experience occasional not stable as
cash deduction from their customers complain
bank accounts. about unreliable
banking network.
(Pradeep, 2015) Use of information Downloading Customers need
technology in banking applications from to be aware of
sector has encourage unsecured websites cybercrime to
customer centric model, it lead to cyber theft. prevent thefts and
is vital for banks to Cyber attackers scams.
provide safe and quality cheat the customers
services to customers. by asking them about
their bank details.
(More & Most of the cybercrime There is a need for Cybercrime can
Nalawade, incidents take place in strong enforcement be prevented by
2015) public sector banks and of cyber laws to taking measures
most repeated offences prevent bank thefts. while operating
include credit card fraud the system.
and viruses.
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