Special Correspondent :
As many as 62 percent banks in Bangladesh are somewhat vulnerable to cyber attacks.
The share of banks having partial preparation to prevent cyber attacks is 34 percent while rest of 28 percent banks are yet to be prepared to defy.
This sensitive information featuring poor preparation of banks to counteract cyber attacks was disclosed at a seminar styled “IT Security in Banks of Bangladesh: Threats and Preparedness” held at Bangladesh Institute of Bank Management (BIBM) in the city’s Mirpur on Sunday.
The research, conducted by senior bankers, also found 38 percent of local banks is fully prepared to thwart cyber attacks.
According to Bangladesh Bank (BB), the country’s banking industry comprised a total of 62 scheduled and non-scheduled banks, including 40 private commercial banks and nine foreign banks. The remaining banks are state-run scheduled, non-scheduled and specialized ones.
In the research on IT (Information Technology) security of banks, a total of 50 cyber attacks to different banks were analyzed that found highest portion of 43 percent targets the ATMs (Automated Teller Machine) followed by 25 percent mobile banking, 15 percent ACPS (Automated Cheque Processing System) and EFTs (Electronic Funds Transfers), 12 percent on internet banking, 3 percent on internet banking software and 2 percent through SWIFT and others.
It is to be noted that SWIFT stands for Society for Worldwide Interbank Financial Telecommunication that provides a network enabling banks and financial institutions worldwide to send and receive money.
Hackers had entered the Bangladesh Bank’s reserves operating system using SWIFT code and stole US$ 101 million from NY Fed early February in 2016. This biggest heist had aware the managements of local banks and policymakers of cyber attacks.
Former Deputy Governor of Bangladesh Bank Abu Hena Mohd Razee Hassan told the seminar that banks of Bangladesh have been investing in technology infrastructure solutions. “But some banks are yet to upgrade their IT infrastructure. Cyber insecurity has not been properly addressed by the banking sector of Bangladesh making sensible information and infrastructures vulnerable to sophisticated cyber attacks,” he said.
He said software unavailability, shortage of skilled manpower, inadequate infrastructure, lack of long-term vision, proper planning and initiatives, poor IT budget, weakness of business process reengineering, delay in procurement process and lack of appropriate and advanced training are the main problems in this area.
He said IT has become indispensable for banking operation in line with the global trend and it has made banking operation easier. Bangladesh bank has also aiding banks to get IT upgraded by regulatory advocacy from time to time. He said IT use in banking and financial transactions has become essential now a day.
Cyber attacks against financial institutions are becoming more frequent, sophisticated and widespread, he added.
“Recent cyber attacks in the banks of Bangladesh triggered the cyber security issue again. The banking sector has sometimes neglected cyber security because of the absence of stern and effective cyber security regulatory norms in the country. Bangladesh Bank has issued some basic level guidelines and recommendations but they are still away from international standards. The central also mandated establishment of IT Governance and IT Security for all banks. However, several banks are yet to comply with the directions so far.”
“With the advances in IT, most banks in Bangladesh have migrated to core banking system and have moved transactions to payment cards, debit/credit and to electronic channels like ATM, Internet banking and mobile banking.
As many as 62 percent banks in Bangladesh are somewhat vulnerable to cyber attacks.
The share of banks having partial preparation to prevent cyber attacks is 34 percent while rest of 28 percent banks are yet to be prepared to defy.
This sensitive information featuring poor preparation of banks to counteract cyber attacks was disclosed at a seminar styled “IT Security in Banks of Bangladesh: Threats and Preparedness” held at Bangladesh Institute of Bank Management (BIBM) in the city’s Mirpur on Sunday.
The research, conducted by senior bankers, also found 38 percent of local banks is fully prepared to thwart cyber attacks.
According to Bangladesh Bank (BB), the country’s banking industry comprised a total of 62 scheduled and non-scheduled banks, including 40 private commercial banks and nine foreign banks. The remaining banks are state-run scheduled, non-scheduled and specialized ones.
In the research on IT (Information Technology) security of banks, a total of 50 cyber attacks to different banks were analyzed that found highest portion of 43 percent targets the ATMs (Automated Teller Machine) followed by 25 percent mobile banking, 15 percent ACPS (Automated Cheque Processing System) and EFTs (Electronic Funds Transfers), 12 percent on internet banking, 3 percent on internet banking software and 2 percent through SWIFT and others.
It is to be noted that SWIFT stands for Society for Worldwide Interbank Financial Telecommunication that provides a network enabling banks and financial institutions worldwide to send and receive money.
Hackers had entered the Bangladesh Bank’s reserves operating system using SWIFT code and stole US$ 101 million from NY Fed early February in 2016. This biggest heist had aware the managements of local banks and policymakers of cyber attacks.
Former Deputy Governor of Bangladesh Bank Abu Hena Mohd Razee Hassan told the seminar that banks of Bangladesh have been investing in technology infrastructure solutions. “But some banks are yet to upgrade their IT infrastructure. Cyber insecurity has not been properly addressed by the banking sector of Bangladesh making sensible information and infrastructures vulnerable to sophisticated cyber attacks,” he said.
He said software unavailability, shortage of skilled manpower, inadequate infrastructure, lack of long-term vision, proper planning and initiatives, poor IT budget, weakness of business process reengineering, delay in procurement process and lack of appropriate and advanced training are the main problems in this area.
He said IT has become indispensable for banking operation in line with the global trend and it has made banking operation easier. Bangladesh bank has also aiding banks to get IT upgraded by regulatory advocacy from time to time. He said IT use in banking and financial transactions has become essential now a day.
Cyber attacks against financial institutions are becoming more frequent, sophisticated and widespread, he added.
“Recent cyber attacks in the banks of Bangladesh triggered the cyber security issue again. The banking sector has sometimes neglected cyber security because of the absence of stern and effective cyber security regulatory norms in the country. Bangladesh Bank has issued some basic level guidelines and recommendations but they are still away from international standards. The central also mandated establishment of IT Governance and IT Security for all banks. However, several banks are yet to comply with the directions so far.”
“With the advances in IT, most banks in Bangladesh have migrated to core banking system and have moved transactions to payment cards, debit/credit and to electronic channels like ATM, Internet banking and mobile banking.
