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Bangladesh’s Banking Sector Fights Escalating Cyber Threats
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The rapid expansion of Bangladesh’s digital economy has brought about unprecedented convenience and efficiency in the banking sector. However, this technological advancement has also exposed banks to a plethora of cyber threats, making cybersecurity an increasingly pressing concern.
Rising Risks and Vulnerabilities
According to a study by the Bangladesh Institute of Bank Management (BIBM), 52% of banks in the country are currently at high risk of cyber attacks. The sector faces an average of 630 cyberattacks daily, with:
- 24% originating from China
- 12% from Russia
- 13% from North Korea
Malicious Activities on the Dark Web
The dark web has become a breeding ground for malicious activities, with 3,639 bank cards issued by Bangladeshi banks being identified on the platform. This poses a significant risk of financial loss to both institutions and individual account holders, amounting to $4,36,68,000 in potential losses.
Vulnerabilities Exposed
A report by BGD e-GOV CIRT revealed that core banking systems and internet banking gateways were accessible through the internet, exposing the total deposit of these financial institutions. This vulnerability highlights the need for robust cybersecurity measures to protect banks from cyber threats.
Lack of Skilled Personnel and Insufficient Investment
The BIBM study attributed the high risk of cyber attacks in Bangladesh’s banking sector to a lack of skilled personnel, inadequate awareness among bankers and customers, and insufficient investment in strengthening security measures.
“We have seen significant investments in IT infrastructure within the banking sector, but this has not been matched by an equivalent level of investment in cybersecurity,” said Md Mahbubur Rahman Alam, associate professor at BIBM. “The lack of in-house IT expertise, inadequate spending on cybersecurity and training, and vendor-related security breaches are major weaknesses that need to be addressed.”
Failure to Implement SOC Directive
Despite the growing concerns, many banks have failed to implement the Security Operation Centre (SOC) directive from Bangladesh Bank, which aims to fortify the banking sector against cyber threats.
“Cybersecurity researcher Tanvir Hassan Zoha emphasized the importance of implementing SOC and urged the consolidation of all required facilities in one central point to deal with cybersecurity issues. He also highlighted the need for increased digital literacy among customers to avoid potential threats and follow secure financial platforms.”
IT Investment and Training
The banking sector has invested a significant sum of Tk42,609 crore in IT since 2020, but only a mere 3% was allocated for training, and 5% for security measures. As a result, 50% of bank employees have inadequate knowledge of IT security.
“The primary reason for the reluctance of homegrown experts to work in the financial sector stems from the inadequate allocation of resources within the sector,” said Dr Md Shohrab Hossain, professor at BUET.
Call for Collaboration and Digital Literacy
Mohammad Ali, Managing Director and CEO of Pubali Bank Limited, emphasized the need for a unified approach to strengthen defenses and regulations. “Governments, financial authorities, and industry players must collaborate to devise and implement effective cybersecurity measures, ensuring the resilience of the financial system in the face of evolving cyber threats.”
Tanvir Hassan also stressed the importance of increasing digital literacy among customers and ensuring awareness is inevitable among customers to avoid potential threats and follow secure, threat-free financial platforms.
Conclusion
The escalating cyber threats in Bangladesh’s banking sector require a collaborative approach from governments, financial authorities, and industry players. Only through a unified effort can we ensure the resilience of the financial system against evolving cyber threats.