Strengthening Cyber Defences in UK Banks: How to Protect Financial Data

Security has always been a major concern for banks. Preventing malicious actors from getting access to the money inside the bank is one of the institution’s key functions. It’s for this reason that banks construct thick-walled vaults, where cash and other valuable objects are stored.

In the modern age, however, banks don’t just need to be physically secure. Since money is, for the most part, now stored in digital ones and zeroes, it’s essential that digital security is taken very seriously, too.

The Rising Threat Landscape in UK Banking

The scale and nature of the threat posed by cyber-attacks are constantly evolving. According to government data, the most common type of breach or attack is currently phishing. Malware and viruses still pose a threat – but most attackers judge that human beings are the weakest link when it comes to security. Of course, where third-party services are being used, these can also be exploited. Recently, hackers targeted Santander, and obtained the bank details of more than thirty million customers – and this is speculated to be a result of an attack on a cloud storage company.

To combat these evolving threats, banks are investing in managed firewall services and other precautions.

Key Cybersecurity Measures Adopted by Banks

Today, banks call upon a number of measures designed to raise the costs for would-be attackers. These include encryption, which involves scrambling data such that it can’t be intercepted and unscrambled by any third party. End-to-end encryption comes in many different types – and the variety currently used by most banks is rock solid. Of course, if you give away your login details, or other crucial data, this encryption can be bypassed – which is why banks focus so relentlessly on phishing attacks and other scams.

Another key security measure employed by banking apps is multi-factor authentication. If a hacker gains your password, they won’t be able to gain access to your account without both your phone and your fingerprint (or face). This makes it much, much more difficult for an account to be compromised.

The Role of Regulatory Compliance

Modern banks must comply with a range of regulations, imposed by the UK’s financial regulator, the Financial Conduct Authority. By staying on the right side of the regulations, banks can not only reduce the risk of fines and reputational damage – but they can also keep consumer data secure. Among the most important regulations are those that require a firm to report cyber events. If a bank is attacked and customer data is stolen, the bank is legally obliged to speak up about it.

How Customers Benefit from Enhanced Cybersecurity

So, why might a consumer benefit from all of this? Most obviously, it reduces the risk that an account might be compromised. This means that the money being stored is safer. But there are also knock-on effects to consider. A general reduction in fraud and legal risk will result in savings that might be passed on to consumers (and shareholders, too).

Staying Vigilant: What Customers Can Do

Of course, customers don’t have to wait for banks to bring in security measures. Vigilance against scams and phishing attacks is imperative if you want to safeguard your finances. Don’t give out passwords, even to people who claim to be bank employees. Be vigilant when it comes to contactless payment, too!