Financial services outlook: Protecting critical bank & credit union devices from evolving cyber threats

Financial institutions are seeing an accelerated consumer demand for convenience and streamlined experiences, leading to an uptick in the implementation of digital solutions and technologies for branch automation, safety, and security. In fact, according to KPMG, nearly 50% of financial service providers expect to see radical digital transformation in the next three years.

This will be driven by consumers that now depend on a network of branch technologies beyond ATMs – from Interactive Teller Machines (ITMs) and mobile dashboards to behind-the-scenes security devices including cameras and safe locks – to carry out transactions and resolve issues securely and efficiently, at scale.

However, as banks and credit unions shift their focus towards improving consumer experiences through innovative technologies, the devices they implement are more vulnerable to not only threats of physical theft, but also cyberthreats, than ever before – with 92% of ATMs being susceptible to cyberattacks and API attacks in the financial industry growing 257% year-over-year from 2021-2022.

To ensure that the entire network of physical devices is protected from threat, while maintaining a positive journey for the consumer, financial institutions and decision makers should keep three considerations top of mind to optimize operational efficiencies while enhancing the consumer experience heading into 2024.

Keep All Device Software Up to Date

Hackers and bad actors are becoming more advanced, with more than 60% of financial institutions around the world suffering from a cyberattack in the past year. With the cost of a data breach averaging at $5.9 Million in 2023, financial institutions should harden and actively manage their iOT devices, including automation equipment, to mitigate risks to infrastructure.

They should also select service providers who have a history of assisting customers in system hardening. Institutions must be systematic and rigorous in how they manage all operations and embedded technologies. This will ultimately support both security and operational efficiencies. 

Invest in Advanced Identity Verification

Hackers benefit from devices and software with lenient identity access protocols, and can gain easier access to financial systems and software without this layer of defense. When it comes to securing access to an institution’s surveillance, ATM data, and vault codes, it’s critical to consider implementing more cutting-edge identity verification solutions.

For example, banks and credit unions are turning towards multifactor authentication, mobile credentialing and identity management solutions to secure access to devices and data – as well as face, fingerprint or iris scanning technology for ATMs, with the global biometric banking industry expected to grow 18.3% per year from 2023 to 2032.

Prioritize a Unified Platform for Easy Access and Response

As financial institutions can deploy up to hundreds of different devices at a time, a fully integrated and unified system, including physical devices, is necessary to easily manage, oversee and protect the environment from threat. With this, deploying a single-pane-of-glass platform to manage and unify these devices onto the same network is critical to avoid oversight and potential fraud.

When evaluating potential security platforms, financial institutions should prioritize features including open architecture, data protection, and easy navigation. Having a unified system in place will also allow for institutions to have tighter control of their systems, complete camera coverage of the premise from one interface, and increased network efficiency all from one place to quickly and seamlessness address potential threats.

As security threats continue to rapidly evolve and consumer needs shift, financial institutions must prioritize implementing state-of-the-art technology and solutions to protect their branch devices, customers, sensitive information, and their reputation.

By vigilantly keeping device software up to date, investing in advanced identity verification technology, and prioritizing a unified platform for easy access and response, financial institutions can improve their overall performance and efficiencies, remain complaint, and better meet customer demands without any disruptions to the services they provide.