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Network security a challenge to digital banking

Vietnam is developing digital banking, but vulnerabilities in cybersecurity remain a barrier to growth.
Network security a challenge to digital banking
Vietnam is developing digital banking, but vulnerabilities in cybersecurity remain a barrier to growth.
 

Le Manh Hung, head of the IT Department, said commercial banks have been developing modern banking services on the IT platform. As a result, the number of clients making transactions at banks has decreased significantly.

A survey by IDG Vietnam in 2017 found that e-banking solutions have been more commonly used and appreciated thanks to their convenience and time savings. 81% of clients used e-banking solutions in 2017, while it was 21% in 2015.

Techcombank and VIB now allow clients to remit money via social networks (Facebook and Zalo) and withdraw cash from ATMs without cards. Meanwhile, VP Bank is utilizing IBM’s data analyzing technology to synchronize data and support customers’ behavior analysis.

Vulnerabilities

Credit institutions are the favorite targets of cybercriminals. Most recently, the website of Vietcombank had problems for 15 minutes on April 13.

The data compromise can be the result of extensive cryptographic sharing, use of a faulty USB, access to an informal website, or failure to update systems regularly.

Ralph Haupter, president of Microsoft Asia, pointed out that carelessness and inattention were the reasons behind 85% of cases of data loss, not intentional attacks by cybercriminals.

He said the biggest threat to Asia’s cybersecurity is permissiveness.

Negligence and loose security are factors that pave the way for hackers to penetrate businesses’ systems, even though businesses spend big money on technologies and security.

The latest report from Microsoft showed that many emerging economies in Asia are facing risks of being infected with malware, or similar threats. Vietnam is among the countries in high danger of malware.

Cybersecurity 

An analyst said that in most cases, the victims suffering heavily from cyberattacks cannot recover because of two reasons. First, they incur heavy financial loss. Second, they cannot restore customer confidence.

Meanwhile, Pham The Truong, CEO of Microsoft Vietnam, warned that there would be more sophisticated cyberattacks on individuals, businesses and nations, and hackers would operate in a more professional way.

Vulnerabilities of the management systems will continue to be the targets of attacks, resulting in heavy losses. 

In addition, the threat to mobile devices will increase. Hackers will target mobile devices when users use wi-fi for free. They will steal personal information, distribute malicious codes, and track users' network activities.

Truong predicted that finance & banking would be among the sectors to be attacked the most. IoT devices may serve as tracks that lead to cyberattacks. 


Source: Vietnamnet/VOV