How Experts and Consumers Keep Digital Banking Safe and Secure
In today’s fast-paced world, digital banking is a part of everyday life. Whether you’re an entrepreneur managing business funds or a small business owner saving for future growth, keeping those finances secure is crucial. This is why cybersecurity is not just a buzzword but a necessary shield for digital banking, protecting both your business and your customers from online threats.
Why Cybersecurity in Banking is Important
Think of cybersecurity like the locks on your doors at home. Just as these locks keep intruders out, cybersecurity measures protect your online bank accounts from hackers. For entrepreneurs and small business owners, it’s important to trust that your money is safe and that unauthorized access is kept at bay.
The Problem with Weak Passwords
Using the same password for all your accounts is risky. It’s like having one key for your house, office, and car—if someone gets that key, they can access everything. This is why varying your passwords is essential. As Sean McElroy, Chief Risk and Security Officer at Lumin Digital, highlights, many people still reuse passwords, increasing their vulnerability to breaches (source).
How Banks Are Performing on Security
Imagine banks receiving a report card for their security measures. Unfortunately, many banks aren’t doing well, with over 58% scoring a D or worse in a security assessment. Only a small number earned top marks, equivalent to an A (source). For entrepreneurs and small business owners, this means choosing banks with strong security practices is vital.
Embracing Multi-Factor Authentication (MFA)
MFA is like having an extra lock on your online accounts. Even if someone has your password, they still need another code—usually sent to your phone—to gain access. McElroy mentions that MFA adoption is less intimidating now but warns that attackers are always finding new ways to bypass security. This means not just relying on passwords alone, but using methods like MFA for added protection (source).
Beware of Growing Scams
Scams are deceiving tricks to steal your money or information. In 2024, these scams increased tenfold, affecting both consumers and businesses. Fraudsters often pose as friends or reputable entities to access your data. As businesses implement new methods of account authentication, scammers are quick to adapt, so remaining vigilant is essential.
Fighting Back with Team Effort
Much like a cleaning crew working together to tidy a park, banks and their teams must collaborate to tackle cyber threats. This means using advanced tools and maintaining open communication. According to McElroy, it’s important that cybersecurity is not siloed. Everyone, from IT teams to executive leaders, must be part of the security conversation.
Building a Culture of Safety
Cybersecurity isn’t just the responsibility of IT teams—everyone plays a role. It requires teamwork and a unified approach, much like a well-coached sports team. Clear, continuous communication ensures everyone is on the same page, enhancing the overall security posture of the organization.
As digital banking continues to grow, so does the importance of robust security measures. By understanding the vulnerabilities and adopting best practices like varying passwords and using MFA, both entrepreneurs and small business owners can safeguard their financial health and build trust with their customers.
