In the battle against Cybercrime, banks are using new tools to protect their customer’s identities. Cybercriminals are constantly finding ways to exploit your identity, and traditional security methods have been found lacking in recent years. Banks now use several new technologies to ensure that you can bank securely online or on the go!
We will explore ten different reasons that banks are using your identity for better cybersecurity:
1. KYC (Know Your Customer) Data Protection
Banks must make sure that their clients are genuinely who they claim to be. KYC or Know Your Customer is the mandatory process of identifying and verifying a customer’s identity when opening an account and periodically over time. Banks may refuse to open an account if customers fail to meet minimum KYC requirements, so banks need to do this to ensure safety on both sides of transactions.
2. Advanced Fraud Prevention Software
For years, banks have had to employ a plethora of measures for detecting fraud and money laundering. They use anomaly detection techniques that monitor customer data in real-time across banking channels with machine learning algorithms that can detect anomalies or inconsistencies within seconds. Predictive analytics solutions are also used as an additional layer to identify patterns associated with financial crimes before they happen by cross-referencing the input from different sources such as social media feeds, retail outlets, travel, and more.
3. Cybersecurity Awareness Training Programs
Financial institutions are burdened with a greater need for security than other industries. In the past, this meant locking cash away in reinforced bank vaults and hiring 24/7 guards to watch over it all day. Today, they have best-in-class cybersecurity teams who create new programs to help them stay one step ahead of hackers while utilizing state-of-the-art detection and response technology that can check data breaches as soon as they happen before anything terrible happens or too much information is taken out of their database by these cyber thieves.
The more personal data these training programs can access, the better they can create programs that protect their customers against common cyber attacks like phishing and virtual impersonation.
4. Cybersecurity Insurance Policies
To adequately protect and ensure your data, the personal data of the cybersecurity insurance companies require risk assessment analysis which includes your data. This ensures that in the event of a crime, digital forensics are available. Companies must protect their customers’ sensitive data and face potential liability through a breach. Adequate insurance will reimburse companies expenses related to digital forensics investigations and credit monitoring services post-breach for those affected by the cyberattack.
5. Facial Recognition Software
Passwords are security risks because they’re based on what people know. For example, hackers could use any number of tactics to obtain that knowledge.
Facial recognition technology on a mobile device authenticates customers based on who they are instead of what they know. Facial recognition provides an additional level of security, with the first being possession of the phone itself and the second being live facial images that are used for authentication purposes. Multifactor authentication presents more barriers to would-be hackers than simply password protection alone does.
6. Two-Factor Authentication (2FA)
Cyber-attacks are a growing threat to the security of personal information. Experts recommend using two-factor authentication, which is also known as multi factor authentication or MFA. This second layer of defense protects your online accounts and complements strong passwords with an extra step before you can log in, such as entering a code sent by text message when logging in from new devices, for example.
7 . Client Data Protection Systems
Banks and financial institutions safeguard against these threats by using firewalls to ensure only authorized applications access data. This is where Intrusion Prevention Systems/Intrusion Detection Systems (IPS/IDS) is applied, both to only grant access to authorized users and protect against malware. Denial of Service (DoS) attacks are also taken so that a customer’s access to their banking services isn’t interrupted. A combination of these techniques is used in what’s called “stateful inspection”—that is, before data can move between client and server—the IPS checks the traffic for any malicious codes or other irregularities on behalf of the user, data is inspected in multiple ways to ensure that the information is clean and legitimate. To properly employ a Client Data Protection system, access to the client-server and database is required to provide optimum protection.
8 . Geolocation Services
Banks and other payment providers can use the location data gathered from mobile GPS to verify that a transaction is nearby. This added level of security makes it possible for them to determine whether an individual’s transactions align with their locations based on how they are interacting with the app.
9 . Transaction Tracking
Banks track transactions so carefully because it is one way for them to keep tabs on customers’ spending habits. That’s why when strange or erratic behavior suddenly pops up in these records; there are usually warning signs indicating fraudulent activity being committed by someone with access to the account holder’s personal information – like their lawyer, minister, and psychologist combined into one!
10 . Big Data
Big data is a term that refers to any information set so large and complex it becomes difficult for average systems. Data sets from various sources such as Facebook, Microsoft, and Apple are beyond what our usual IT infrastructure can understand or manage. The major players have vast databases that give them an edge on the competition.
Knowing the usual patterns of people’s financial behavior helps banks know when something is wrong; in these events, the bank will call clients for clarification on what occurred to take appropriate measures such as freezing accounts or canceling cards immediately before any fraudulent activity.
Personal data is the largest mine in the world. With the emergence of a vast amount of information from various channels, it’s easy for fraudsters to access personal and financial information with a little keyboard research. Banks are stepping up their security measures accordingly, utilizing this same type of personal information as they do to protect you. While we may value our privacy, it is reassuring to know that banks use our data to keep us safe.
