Four Ways to Protect Your Financial Institution from Online Threats

posted by James Boyd on Tuesday, October 8, 2024 in SHAZAM Blog

Cybersecurity is increasingly important as more people conduct banking online. While the surge in digital payments and mobile banking creates conveniences for accountholders, it also creates potential vulnerabilities when it comes to fraud and cybersecurity. Here are four threats to look out for and the solutions to keep everyone’s sensitive data and finances secure.  

Cybersecurity Threat #1: Social Engineering

Social engineering is the act of tricking people into sharing confidential information or sending money. An email pretending to be from a coworker asking for access or sensitive information or a phone call from someone impersonating a government official demanding money are just a couple of the many schemes scammers use to make a quick buck or steal data.  

The Solution: Think Twice and Verify

Social engineering involves people; that’s why education about these scams is key to preventing them from happening. If your staff and accountholders know the warning signs, they are less likely to fall for a scam. Be on the lookout for any misspelled words or poor grammar in emails and hover over any links to make sure they are legitimate. Let your accountholders know financial institutions will rarely ask for your account number, PIN, or password during a phone call — and will never ask for a one-time login code. They also won’t use fear tactics to pressure accountholders to click links.  

Cybersecurity Threat #2: Easy-to-guess Passwords

Passwords protect our accounts and devices. One of the most common ways hackers try to gain access to your personal information is by guessing your password. Common passwords, such as “admin” or “abc123”, lack complexity. They also come up in most common password Google searches. And if your password is on a public site, it lacks security and puts you at risk of your accounts being hacked.  

The Solution: Complex Passwords and Multi-factor Authentication

Strong passwords use letters, numbers and characters to make them harder to guess. Here are some suggestions on how to create a strong password if you need some help on what to come up with. 

An additional layer of security is multi-factor authentication. Multi-factor authentication is a multi-step account login process requiring users to enter additional information to log in to their accounts. Users might be asked to enter a code sent to their phone or use a mobile app to confirm their login. This additional authentication can help prevent unauthorized access to your accounts if a password has been compromised or caught up in a breach. 

Cybersecurity Threat #3: Overexposed Services or Devices

Admin login pages or other services that should be restricted, such as firewalls and routers, are commonly found open to anyone. This leaves them vulnerable to criminals using scanning tools to detect open ports to use as an initial attack vector for vulnerabilities unknown to the public. These are referred to as zero-day vulnerabilities. These are especially dangerous because the attackers are the only people who know about them. Once they have infiltrated a network vulnerability, criminals can immediately attack or wait for the most advantageous time to do so.  

The Solution: System Testing and Hardening

Keep all software and operating systems up to date. These updates include security patches to cover any identified vulnerabilities in previous releases. Additionally, disable unnecessary services and features to minimize any potential vulnerabilities. Use secure configurations to prevent anyone from engaging in unauthorized web activities and to help prevent malicious activity. 

Cybersecurity Threat #4: Unlimited User Access

Not all users should have access to every network, IT infrastructure, or computer system at your financial institution. Giving employees unlimited access is like giving them a master key. If the master key gets into the wrong hands, all your systems are at risk.  

The Solution: Principle of Least Privilege

The principle of least privilege is giving employees access to the networks and folders necessary for their job. It strikes a balance between usability and security to safeguard critical data and systems. This limits the damage of compromised user credentials or accidental data exposure.  

Staying Secure with SHAZAM

As cyberattacks become more prevalent and sophisticated, financial institutions are under growing pressure to beef up their cybersecurity. Our SHAZAMSecure® team provides you with a menu of security services so you can pick what’s right for you. We can help your financial institution evaluate your information security and IT policies to identify areas where you’re most at risk for a cyberattack. We also can test for any internal or external vulnerabilities to help you better understand any internal or external weaknesses that may exist to ensure all your systems remain secure. Together, we can ensure your accountholder’s financial information is secure from their first log in.  


SHAZAM, Inc. and ITS, Inc. provide this blog for general informational purposes only. Our blog may be shared by a direct link wherein the content remains as originally presented and has not been altered. SHAZAM, Inc. and ITS, Inc. assume no responsibility for errors or omissions in the contents on the blog. By using this blog, reader agrees that the information published does not constitute nor is a substitute for legal advice which should only be sought from a qualified, licensed attorney. 


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