As the Banking ecosystem gets more and more digital and users perform more transactions online, the risk of a data breach also increases. There are extraordinarily smart and proficient cyber criminals and hackers out there using the most innovative techniques to commit cyber fraud or hack into bank servers to steal important data such as a customer’s personally identifiable information (PII). Once a hacker gets access to a customer’s PII they can easily use it for malicious activities.
According to an S&P Global study, financial institutions have experienced the greatest number of cyber-attacks. The BFS industry faced 25% of cybersecurity incidents in comparison to Healthcare (11%) and Software and Technology Services (7%) and Retail (6%).
According to a Trend Micro report, the banking industry experienced a 1,318% year-on-year increase in ransomware attacks in the first half of 2021. The rapid rise in the volume of cyber-attacks indicates how critical cybersecurity in banks is today. This is why security testing in banking is extremely important as it lays greater emphasis to examine the cyber security vulnerabilities in banking processes that can be exploited.
Common principles of a banking application
Banking applications are commonly multi-tier with various functionalities, engaging parallel users. Banking applications need to integrate with numerous other applications. The rate of transactions per second are usually very high and they happen in real-time.
Additionally, the banking industry requires strong reporting to keep a tab on, and record every minute transaction and user interaction. Therefore, they need to have massive storage systems which must be secure but also accessible at all times.
Security Testing addresses three different problem areas:
- Static Code Analysis – This analyses patterns and detects vulnerabilities in the source code to send an alert to the developer.
- Dynamic Analysis – This analyses the commonly known strikes on the software to check for vulnerabilities.
- Interactive Analysis – Here the code library over a particular time slot is used to create an updated version of the software. This is then used to detect any peculiar behavior or vulnerability.
Some Security Testing best practices that are considered vital
Test for unexpected behavior or patterns
Testing if the code works in the regular way might not be good enough. The software must be put under pressure and situations created that are unexpected for the software. This will help exploit every aspect of the software and expose its vulnerabilities. Additionally, it will also help to identify hidden bugs and defects that any potential cybercriminal can leverage to get through.
Get APIs tested
APIs and multiple other third-party integrations are usually introduced in an application to offer extended services to the user. However, if these third-party integrations are not secure enough, it can be hacked and information could get leaked. So, tests like API Security Testing must be mandatory in software testing strategy.
Test the environment where the application is getting deployed
It is absolutely critical to anticipate errors, defects, bugs, and scenarios across the deployment field. For example, if an application is being deployed on a server, the server needs to be examined for any possible configuration issues or open ports. This will ensure that sensitive information is not touched and the application runs safely and smoothly.
Moreover, it could also help to run breach simulation exercises during security testing to identify high-priority vulnerabilities.
Data Loss Prevention
To ensure that end users do not share sensitive information outside the bank network, Data Loss Prevention (DLP) strategies can be implemented at the enterprise level. This helps the network administrator to control the flow of information. With DLP, the administrator can set business rules to segment the information by its criticality and intensity of risk for the bank.
In Conclusion
Some of the major challenges that the banking and financial sector faces in this age of Digital Transformation is achieving admirable user experience, automating and improving workflows, and providing impervious security. While it is important to streamline the banking activity for the user, it is equally critical to ensure secure online transactions and safe banking measures.
Aspire’s security testing uncovers vulnerabilities in banking applications and ensures that the application risks are minimized. We have developed several frameworks, checklists, methodologies and guidelines for banking applications, core banking systems, networks, and cloud.
Connect with us to test applications that can excel through the chaos of the digital sphere.
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