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Preparing For The Next Wave of Cybersecurity Challenges in the Australian Banking Sector
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Global Banking and Finance Review
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By Bryan Saba, Managing Director and CEO of Excite Cyber
As one of the most critical sectors in any modern economy, it should be unsurprising that the banking sector is the proving ground for successfully navigating cyber security threats. According to the OAIC, it’s the second-most targeted sector, with 10% of all attacks targeting finance.
It is also of intense interest to the regulators for this reason.
Earlier this year, the Australian Prudential Regulation Authority (APRA) highlighted cyber security as a key area of focus, emphasising the need for robust operational resilience and governance. The key priorities for APRA, according to its most recent guidance, is:
Meanwhile, the Reserve Bank of Australia has made it clear that cyber security is becoming more difficult in the sector. Cloud and AI, in particular, are creating “operational risks” with potential “systemic implications,” according to the organisation.
Some banks are working on addressing these challenges by partnering closely with the industry. For example, the CBA recently announced that it was deepening its relationship with Microsoft to both boost the customer experience and tackle issues around cyber security and sovereign capabilities in AI.
There is also deeper industry partnerships. Banks are actively working with telcos, major national retailers and others as part of a National Cyber Intel Partnership. This is part of the Australian government’s broader Cybersecurity Strategy 2023 – 2030 and works on the idea that the pooled resources and efforts will result in a national standard for cyber security.
But while the work being done to build a national response to cyber threats is admirable, it’s also important for every organisation to understand where the threats are coming from to the banking sector and what their own risk profile is.
Here are the top cybersecurity risks and threats that the banking sector must prepare for:
While the security threats that face the banking sector are proliferating, and boards and executives are even more fixated on the cyber security risk than in other sectors, banking is also one of the sectors that is most challenged by disruption. Non-banking competitors and fintech applications are challenging the incumbents in the way that they provide excellent customer service built on digital capabilities.
For banks, embracing the capabilities of a digital, connected world is not optional. The banks do have an advantage in that they have the resources and capabilities to invest in true innovation, and this is why cyber security is an opportunity, rather than an obstacle for them. The banks can move to build resilience against the existing and emerging threats in 2024, while staying compliant with Australia’s shifting regulatory environment and keen interest from the government agencies.
Cybersecurity refers to the practice of protecting systems, networks, and programs from digital attacks. It involves implementing measures to safeguard sensitive information and ensure the integrity of financial transactions.
Mobile banking vulnerabilities are security weaknesses in mobile banking applications that can be exploited by cybercriminals. These include malware, data leakage, and unauthorized access to user accounts.
Phishing is a cybercrime where attackers impersonate legitimate organizations to trick individuals into revealing sensitive information, such as passwords or credit card numbers, often through deceptive emails.
Operational resilience is the ability of an organization to prepare for, respond to, and recover from disruptions, including cyberattacks, ensuring that critical functions remain operational during crises.
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