In yet another DDoS attack on financial institutions, according to the Denmark central bank and an IT business that works with the financial sector. Hackers have disabled access to the websites of seven private banks in Denmark this week. Reports by Channel News Asia have it that Distributed Denials of Service, which direct traffic toward targeted servers to bring them offline, targeted the central bank’s website and the website of Bankdata. This is a business that creates IT solutions for the financial sector.
On Tuesday afternoon, the central bank reported that its website was regularly operating and added that the attack did not affect its other systems or regular business operations. Following the DDoS attack on Bankdata on Tuesday, seven private banks’ websites had access temporarily restricted; a business spokeswoman told CNA.
According to the study, the affected banks are two of Denmark’s most prominent commercial banks, Jyske Bank and Sydbank. On Tuesday, Sydbank restricted access to its website, which was announced on its Facebook page. A Jyske representative acknowledged that some consumers encountered difficulties accessing the company’s website on Tuesday.
Why Is The Financial Sector At Increasing Risk Of Cyberattacks?
Banks are where the money is; little wonder it’s an easy target for cybercriminals. Attacking banks offers multiple avenues for profit through extortion, theft, and fraud. The following are a few reasons why banks are at increasing risk of cyberattacks.
- Quick digitization:
The focus of current technology is on automation and comfort. Everyone requires that everything be completed immediately via quicker, more convenient routes. Unfortunately, the financial industry has unintentionally made itself a much bigger vulnerability target in haste to digitalize and enhance customer banking capabilities.
We know that banks own substantial sums of money and resources that may be used against a wide range of people, which is why they have become such a prime target for cyberattacks. Through the years, certain variables have increased the accessibility of this vulnerability:
- Adoption of clouds:
The financial sector is no exception; cloud computing has transformed the sector and made significant strides in offering affordable and effective IT infrastructure solutions for numerous businesses. The cloud has historically represented a radical shift for most industries.
However, like with all technological advancements, the harder we fall, the higher we climb. Cloud misconfiguration risks have severe implications for data security. A cyberattack could easily penetrate a regular cloud network without adequate cybersecurity measures in place, which could result in the release of personal information, passwords, and other sensitive data for the financial sector.
- Remote Employment:
Many firms have chosen to move towards remote or hybrid working methods, which enable employees to work remotely in the wake of the Covid-19 outbreak. This was viewed as the best strategy to guarantee optimal effectiveness while yet minimizing office environment costs.
This organizational structure has been adopted by financial organizations as well, increasing the attack surface area for cybercriminals. There is often a gaping backdoor into the firm’s network because remote workers who have access to company servers and databases do not usually have standardized cybersecurity protections installed on their devices.
- Weak cyber defense:
Naturally, a weak IT infrastructure will put the security of your entire network at risk. Governments and data protection organizations frequently pressure financial firms to implement cutting-edge cybersecurity safeguards, but few comply. According to research by Clearswift, employees who violate firm data protection standards are responsible for over half of security incidents in the financial sector. This threat was particularly pronounced for mid-sized financial companies.
5 Most Serious Risks To A Bank’s Cybersecurity
- Unencrypted Data:
On computers inside your banking institution and online, all information should be secured. This is a very fundamental but essential aspect of cyber security. If your data is encrypted, even if hackers take it, they will not be able to use it right away. If the data is not encrypted, hackers can use it immediately, which will cause major issues for your financial institution.
Every time they connect to your network, end-user devices, including computers and smartphones, that have been infected with malware put the security of your bank at risk. Sensitive data travels across this connection, and without adequate security, malware on the end user device could attack the networks of your bank.
- Non-secure third-party services:
To provide their customers with better service, many banks and financial institutions use third-party services from other suppliers. Your bank might suffer, though, if those third-party contractors need strong cybersecurity protocols in place. Before implementing their solutions, it’s crucial to consider how you can defend against security dangers imposed by third parties.
- Falsified or manipulated data:
Sometimes, hackers just enter to alter data instead of stealing it. If your bank has been hacked in this way, it may be difficult to tell what has been altered and what hasn’t because the altered data doesn’t always appear to be any different from unaltered data on the surface. Unfortunately, it can be challenging to spot an assault of this nature immediately away, and it can cost financial institutions millions of dollars in losses, if not more.
Sometimes cybercriminals will execute a DDoS attack as a distraction technique while they launch another form of attack, perhaps to obtain access to and steal critical financial services data. If hackers are able to obtain personal information, such as banking information, they can use it to launch a series of fraudulent schemes.
According to the Danish central bank and an IT business that works with the financial sector, hackers have disabled access to the websites of the Danish central bank and seven private banks in Denmark this week. There were distributed denial of service (DDoS) attacks against the websites of the central bank and Bankdata, an IT solutions provider for the banking industry.