Advanced Layered security for e-banking
The layered security system provides multi-layered protection for e-banking technologies. Digital banking or e-banking technologies used in banks and financial organizations, utilize the layered security system to protect themselves from cyber-criminal activities. The layered security system uses different control systems at various steps of transactions. Therefore, the strength of one security policy compensates for the weakness of other security policies.
Banks engage the layered defense techniques against cyber-attacks. Once a defense layer is avoided or passed by the cyber-criminals, another layer of defense protects the digital banking systems. The cyber-criminals would be interpreting and trying numerous ways to decode the layered security system.
The layered security system in e-banking creates the defense system that not just detects the cyber attackers but also provides a strong defense against the attackers by spoiling their attacks and blocking them from entering the banking security system. The layered security system improves the banking security policies and destroys the attempt of cyber-criminals trying to breach the digital banking security system.
The various layered security system used in digital banking or e-banking are as follows:
Fraud detection and monitoring system: the banks typically use fraud detection software to detect attacks across multiple channels. The cyber-attacks may include forging cheques or using duplicate credit cards. The process of fraud detection and monitoring is based on customer behaviour and history.
Dual authentication: dual customer authentication is a security system used in the digital banking system. Double authentication techniques usually require two people to complete a single transaction. Changes made by one of the administrators will be considered only after the approval of another administrator. The dual authorization techniques are enabled by default and require permission from both the administrators to disable. This technology prohibits attackers from using stolen credentials.
Positive pay: positive pay is an automated fraud detection technique used in digital banking. The cash management department usually employs positive pay techniques in layered security systems. The positive pay services match the cheque number, account number, and amount present in the cheque. All three credentials should match precisely in positive pay for the transaction to take place.
Debit block: the debit block is a security policy used against cyber-criminals in the layered security system. The debit block protects the user account from unauthorized electronic charges. The debit block provides permission to block the transactions based on the criteria specified. The online banking system provides the names of the blocked sites and allows the users to change the rules used for preventing unauthorized sites. The debit block technology limits the transactions.
Out-of-band verification: out-of-band technology is a two-way authentication technique used in the layered security system. It requires a secondary verification method along with the ID and password authentication. The organization that requires high-security uses out-of-band authentication techniques. Out-of-band stands for the process of communicating outside the current methods and is generally used for verifying the transaction process.
Transaction value thresholds: the threshold value defines the maximum amount allowed per transactions and the number of transactions that are allowed per day. If the transaction exceeds the assigned limit, the transactions get canceled. The transaction value threshold does not affect the existing card limits.
Internet Protocol (IP) reputation-based tools: the IP security-based tools help the e-banking security system by blocking the connection of the susceptible or known IP addresses that are associated with fraudulent activities. The IP reputation services provide reputation scores for every IP address that is used by the banking organizations. The reputation scores operate as a signal in a fraud risk scoring system.
Internal controls: An internal control refers to the system procedures, policies, and processes that are implemented by the board and the management. The internal control protects the assets of the bank that control or limits the risks. The active internal control system detects or prevents mistakes, noncompliance, or potential frauds with the help of bank policies. The internal and external audit programs conducted helps to discover the faults in the internal control security system.
Various defense technologies are introduced by the banking security staff to prevent cyber-attacks. Sophisticated encryption protocols are used by banks to establish security channels against the man-in-the-middle attacks. When cyber-criminals attack the user credentials to achieve sensitive banking information, banks introduce layered protection or multi-factor authentications techniques. The encryption of sensitive data is employed to protect the bank database from hackers if cyber-criminals hack the database of the bank.
Uses of layered security in e-banking or digital banking systems
Endpoint Protection
The users communicate with the bank using various digital appliances such as Laptops, smartphones, and tablets. So layered security system in e-banking or digital banking system provides the necessary protection needed. It stops cyber-criminals from stealing sensitive data or from conducting fraudulent transactions.
Maintains customer loyalty with the help of improved security
The layered security system at banks provides a smooth and comfortable user experience to secure customer loyalty and to manage customer relationships. The layered security system offers instant help for the customers.
Builds customer confidence with advanced security technology
The cyber-criminals target the digital banking system with various fraudulent methods. Layered security systems are introduced in the e-banking system to protect the e-banking system from attacks like card skimming, shimming attacks, and multiple malware attacks while ensuring the simplicity of usage to the end customers.
Mitigates the risks with the banking regulatory agreements
The banks follow various policies and procedures to ensure the security of customer’s data. The layered security system provides secure authentication and transaction signing processes, which helps the banking security staff to mitigate the risks present in the banking system.
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