Because community banks have vaults, does that make them safe from a new form of security risk – cybersecurity? No, warns the Security magazine blog.
“Though banks have long been in the forefront of cybersecurity preparation,” write Seth P. Berman and Thomas J. Curry, “they continue to be top targets of cyber criminals. This can be a particular risk for community banks who may not perceive themselves as targets on the same scale as global banks. However, the reality is that community banks also need to prioritize cybersecurity because data breaches can have significant impacts not only on their own solvency, but also on confidence in the larger financial system.
“Cyberattacks take many forms. Some hackers are attempting to directly steal money from a bank or its account holders. Other attackers may be seeking information about individuals that can be used to commit fraud, even if they cannot directly access that person’s bank accounts. An increasingly popular type of attack is a ransomware attack, which doesn’t typically steal any data at all, but instead encrypts the data and locks a target’s computer system until the target is willing to pay a ransom to the hackers, typically in the form of cryptocurrency.”
So, you might want to raise the cybersecurity issue with your banker contact, just to see how mindful he or she is of this new hazard.