The banking industry is one that’s always seeing changes and new demands from customers. From digitally savvy options to boosting security, banks are looking at new challenges practically every year. But one challenge that banks can’t seem to get out ahead of are cyber threats.
Cyber attacks are starting to become more and more sophisticated, and practically every industry in the world has experienced issues in their own ways. This year alone, major companies such as Dunkin Donuts, Walmart, and Toyota have all become victims to large-scale cyberattacks, and banks are no safer.
Banking customers want to know that not only is their money safe but their other sensitive information, such as social security numbers, address, and contact information, are all safe too. Preventing a cyber threat is hard enough, but being able to assure clients and customers that everything is okay following an attack may be much harder in terms of regaining confidence.
Here’s what banking institutions can do to reassure and retain customers following a cyber attack.
The Value of Protection
If customers have suffered a compromise to their information on account of a cyber attack through your bank they will feel more comfortable with taking their business elsewhere. They may even take legal action against a bank that failed to protect their finances and information. If this route is pursued, banks can initiate their cyber liability insurance, which provides financial help following a cyber attack and as claims related to this kind of event are being made.
When it comes to protection, it truly starts with leadership and company culture. Banks should place value on protection within their IT and cybersecurity structures in order to identify and isolate risks from within or outside of an organization. Also, all data and communications must be kept encrypted across all devices–including tablets and phones logged into a company’s network–that are in use.
It helps to encourage education around cybersecurity among employees. This will help the company as a whole better understand the importance of best practices among cyber threat issues and comprehend the gravity of what an attack can lead to.
Software can be utilized to detect suspicious activity across all platforms that your customers use for digital banking activities including mobile app usage and web-based dashboard. Being able to detect fraudulent activity and identify suspicious activity is a critical step to let consumers know that something is wrong.
Formalizing an incident response plan is a good first step in resolving issues and moving forward with more trust and experience. Key stakeholders throughout a company should be well-prepared with the right action plan if a data breach does occur, which will then help mitigate long-term damages to customers and a bank itself, including such things as breach costs and account holder turnover.
About Financial Guaranty Insurance Brokers
Since 1983, Financial Guaranty Insurance Brokers has distinguished itself as a provider of Professional Liability, Cyber Liability, and Crime insurance products for entities of all types. To receive timely, personalized service from a knowledgeable and experienced staff, call us today at (626) 793-3330 to speak with one of our professionals.