Banging Risk Assessment
Technology advancements have brought a lot of changes in our society recently. The banking business is the sector affected the most with Internet banking which brings efficiency and convenience. (Dauda & Lee, 2015). It has, however, come with its challenges. This paper will conduct detailed research of the risks associated with Internet banking covering areas of risk assessment and measures to deal with the vulnerability of virtual account management. In addition, the essay will explore various techniques that the banks apply to mitigate risks associated with this form of banking.
As an example, OCBC is a bank in Singapore that has adopted internet banking so that its customers can access various services through the Internet. Users can withdraw, deposit, and transfer cash online. Apart from these operations, they can also consider different investment plans using their devices such as personal computers and mobile phones in the comfort of their homes. E-banking has improved customer service operations at banks. However, Internet banking is vulnerable, and the bank is aware of this fact. Financial institutions employ various methods to mitigate associated risks but constant reviews and improvement are to be considered due to ongoing changes in technologies.
Nowadays, online banking faces various threats while customers make the mistake of believing that it is secure to operate a virtual account. The laxity exposes them to the risks and damages connected with the fact the user's device is not protected and faces intrusions. The electronic banking system can protect the bank's operations and devices but not those of the customers. Hackers use Trojans and run layered service providers to attack customers' account security online. In addition, they create fake websites that resemble the websites of the banks. Customers, being unaware of this, log in to these websites and share their details
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In other cases, hackers use Trojans and desktops affected by malware, the combination of which can redirect the customer's request to the hacker's computer; thus, they can get access to the customer's information. On the one hand, the damages that can be caused by these acts are likely to be severe because the customers are at the risk of losing their funds. On the other hand, the reputation of the bank will also be at stake (Dauda & Lee, 2015). Thus, the threats of attack from hackers are a major risk when using electronic payment systems while most customers are unaware of their upcoming attacks.
Having considered industry best practices, OCBC has identified potential threats for its online banking platform. The following risk assessment and implementation of a strong security policy have enabled the bank to provide excellent services to its customers. While confidentiality is of vital importance in Internet banking, the bank commits to providing a very secure environment for its customers using e-banking (Dauda & Lee, 2015).
OCBC uses commercially tested and proven hardware and software products because the management understands that virtual banking faces various threats such as hacking of their websites and retrieving customer information. To sustain the necessary level of security, the bank uses the best routers, intrusion detectors, and business operating systems. The systems of OCBC ensure that customer's confidential information is secure while it is going through router and firewall before accessing the bank's server for authentication. Furthermore, the financial institution has installed a digital certificate technology that can define and track the source of data.
OCBC has greatly contributed to employee security training making personnel aware of the security threats that internet banking might incur. The employees are informed about procedures that need to be followed when performing a transaction while they have a clear understanding of firewall policies, verification, and termination. This helps customer service managers to avoid mishandling of personal customer information because they understand the potential impacts of misusing secure data. Thus, sourcing and employing people with expertise in maintaining the system have helped in running successful Internet banking.
While electronic payment system security requires clients participation, OCBC has provided its customers with valuable information to ensure secure banking. They are educated on how to avoid risks by using a certain procedure to formulate their password: there is a minimum quantity of the characters that are provided for a password, for example. In addition, they are also advised to use high-end software that supports encryption which ensures their passwords are safe while undertaking transactions.
Furthermore, customers are discouraged from using their passwords on suspicious websites and are advised to verify the credibility of the website with the banks by ensuring that they see the digital certificate and the bank's name. Thus, this measure helps them to protect their information while they are solely responsible for keeping such details safe against online theft. To perform the secure transaction online, the customers should use the best available antivirus on their devices and update them regularly. The firewall and software in the customer's devices should also be updated.
Additionally, customers need to backup their valuable information regularly and restrain from installing and running software from unknown sources. Moreover, logging off from the system is important for the customers when it comes to safeguarding their information (Dash & Tech, 2014). Hackers use techniques such as junk emails; therefore, customers need to delete them as soon as they see them. Likewise, in case the customers notice unusual transactions in their accounts, they are advised to change their password and report to the bank for further investigations immediately.
Lessons
Summing it all up, there are various risks in online banking. The damages that these risks can cause in the event of occurrence are severe. E-banking security is not a sole responsibility of the banks, but rather a collaborative effort among banks, their employees, and customers. In virtual banking, customers are most vulnerable to attacks because they are targeted by hackers. On the one hand, banks are responsible for informing their clients about these threats to mitigate the risks. On the other hand, customers need to follow the bank's recommendations to avoid falling prey to the attackers.
Using secure operating systems and updated antivirus software on their devices reduces the risk of hacker attacks. Customers also have to ensure that they are on the right websites before sharing personal information. OCBC has a strong security policy that is regularly subjected to internal and external audits that ensure continuous monitoring of online banking systems. Banks should ensure that they maintain secure websites that customers can authenticate with ease. That is why the usage of intrusion detecting systems is unavoidable while the software is important for analyzing traffic and detecting signatures of the attackers. In addition, banks should embrace these developments to protect their clients. Employees charged with online banking should be subject matter experts in information technology (Dash & Tech, 2014).
In conclusion, Internet banking is a technological advancement that has changed the face of banking considerably while it has brought greater efficiency and convenience. That is why many banks have adopted the process. However, the system comes with its challenges posing significant risks to its players associated with online banking. Formulation and implementation of security policies that address these challenges cannot be underestimated because the system should be carefully monitored to mitigate the risks associated with online banking. Properly formulated and implemented online banking security policy can lead to reaping the full benefits of an electronic payment system.
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