Do you see your bank’s technology as a “negative”— something that creates a drag on earnings and eats up management’s time in dealing with constantly occurring issues? Instead, what if your bank’s technology could be a source of strength, helping your bank to achieve its strategic objectives while at the same time reducing risk, reducing regulatory burden, adding capabilities and allowing management to spend more time on other, more important goals?
The FBI announced that it’s seen a dramatic rise in ransomware. These attacks entice users to open an email attachment or click on a link that downloads malware that “locks-up” or encrypts data on a computer, shared files or files on a server that’s accessible from the computer. The attacker then demands payment to unlock the data or provide the decryption key. These infections can be devastating and recovery can be a difficult and timely process.
Another southern Kansas bank recently joined BankOnIT’s Bankers Private Cloud® service.
BankOnIT created and provides the Bankers Private Cloud®, an exclusive solution for community banks that improves efficiency, reliability and information security while minimizing a bank’s risk – including regulatory and strategic risks.
More government regulation. More risk. More cost. Every day, bankers are faced with these challenges, and information technology issues are increasingly a big part of the reason why. The rapid pace of technological change has driven rapid growth in technology risks, which in turn have driven increased regulatory focus, all of which drive increased costs.
Another Illinois bank recently joined BankOnIT’s Bankers Private Cloud® service.
BankOnIT created and provides the Bankers Private Cloud®, an exclusive solution for banks that improves efficiency, reliability and information security while minimizing a bank’s risk – including regulatory and strategic risks.
The President and CEO at this newest client bank, looks to the increases in cyber risk as an important reason for keeping up with IT.
Earlier this month the FDIC published a Winter 2016 special edition of its FDIC Consumer News entitled "A Bank Customer's Guide to Cybersecurity.”
Your bank's board has responsibility for vendor management
The FDIC released a video today that is designed to assist community bank directors and executive management in developing a comprehensive risk assessment program for vendor management.
You’ve probably heard about the successful cyber extortion of a hospital in Hollywood, California. Hackers cracked into the hospital’s database and then electronically locked up the hospital’s systems with malware. The hospital had to pay the extortionists a $17,000 ransom in bitcoins to regain access to the hospital’s own data.
These attacks are also hitting banks; however, due to the huge reputational risk banks face you are not likely to hear about them. The FFIEC has previously warned banks to protect themselves from extortion by computer attacks such as this.
A bank’s information security risks include not just regulatory risk, but also financial risk (from unauthorized transactions arising from data breaches), reputation risk (loss of customers’ trust and loss of business) and business continuity risk (system failure destruction or corruption of data, or unavailability of electronic information because of hackers, disasters or other business interruptions).
Banking regulators do not discourage outsourcing, and in many cases strongly encourage it, if a bank can obtain better services than it can provide internally and the bank maintains proper supervision over the outsourced vendor’s activities.