Cybersecurity has become a crucial concern for community banks. With the adoption of new technologies, such as mobile banking, remote deposit capture, and electronic bill payments, banks are more vulnerable to cyberattacks than ever before. The COVID-19 pandemic further accelerated the use of online banking services, prompting many banks to adopt remote and hybrid work models. This shift, while beneficial for customer access and operational efficiency, has opened up new doors for cybercriminals to exploit weaknesses in banks' digital infrastructure.

According to cybersecurity authorities, the top threats facing the financial sector today include ransomware, phishing, external-facing application vulnerabilities, and Distributed Denial of Service (DDoS) attacks. As community banks become increasingly reliant on technology service providers (TSPs) to meet customer demands, the need for robust cybersecurity measures is paramount. This blog dives into these cybersecurity trends, highlights best practices for community banks, and explains how NVIS AI can provide a comprehensive security solution to protect these institutions from emerging cyber threats.

Current cybersecurity trends affecting community banks

1. Increased vulnerability due to technological adoption

As community banks adopt digital banking solutions and integrate third-party services, their vulnerability to cyberattacks increases. This technology adoption has exposed banks to a range of threats, such as malware, phishing, and network breaches, making it critical to implement effective cybersecurity controls.

2. Rise in ransomware and phishing attacks

Ransomware and phishing remain two of the most prominent cyber threats to community banks. Cybercriminals target banks through emails, tricking employees into revealing sensitive information or downloading malicious software. Once inside the system, attackers can gain access to confidential banking data, lock down critical systems, and demand large ransoms to restore access.

3. External-facing application vulnerabilities

Community banks often use web-based applications and online banking portals to facilitate customer transactions. However, these applications can be susceptible to vulnerabilities that attackers exploit to gain unauthorized access. By identifying weaknesses in the bank's external-facing systems, cybercriminals can infiltrate the network and compromise sensitive customer information.

4. Distributed Denial of Service (DDoS) attacks

DDoS attacks involve overwhelming a bank’s systems with a flood of traffic, causing disruption to services and preventing customers from accessing banking services. These attacks can significantly impact a bank's reputation and customer trust, leading to financial losses and regulatory repercussions.

5. Elevated risks from geopolitical events

Global geopolitical tensions can result in an uptick in cyberattacks against financial institutions. Cyber threat actors often exploit political unrest and conflict to target banks, either directly or through their third-party service providers (TSPs). These attacks can have far-reaching implications, affecting not only the targeted bank but also its network of customers and partners.

Best practices for community banks to strengthen cybersecurity

To combat these threats, community banks need to implement a comprehensive cybersecurity strategy that addresses current and emerging risks. Below are the best practices recommended by cybersecurity authorities like the Federal Financial Institutions Examination Council (FFIEC) and Cybersecurity & Infrastructure Security Agency (CISA):

1. Regularly review information security programs

Banks should establish a robust information security program that identifies, measures, mitigates, and monitors cybersecurity risks. This includes employing multifactor authentication (MFA), securing remote access with Virtual Private Networks (VPNs), and promptly applying security updates to software and hardware.

2. Conduct routine cybersecurity awareness training

Since human error is a common entry point for cyberattacks, banks must train their employees on how to recognize phishing attempts and other social engineering tactics. Regular phishing exercises and follow-up training sessions can help to minimize the risk of an employee inadvertently falling victim to a cyberattack.

3. Implement multiple security tools for network protection

Banks need to use a combination of security tools, such as email filtering systems, endpoint detection and response (EDR) solutions, and Security Information and Event Management (SIEM) platforms. These tools help identify and mitigate threats before they cause significant damage to the network.

4. Enforce robust patch management

Applying software patches and updates is essential for closing security gaps. A structured patch management program ensures that all network components, such as firewalls, computers, and mobile devices, are regularly scanned, updated, and secured against known vulnerabilities.

5. Secure and test backups regularly

To prevent data loss from ransomware attacks, banks should maintain multiple encrypted copies of critical data in various geographical locations. Regular testing of backup and recovery processes is necessary to ensure their effectiveness during a crisis.

6. Review vendor contracts and cybersecurity controls

Given the reliance on third-party vendors, banks need to monitor all vendor connections and require security measures like MFA for access. Verifying that service providers have robust cybersecurity controls in place is vital to maintaining data security.

7. Develop and test an incident response plan

A well-defined incident response plan is crucial for minimizing the impact of cyberattacks. Banks should conduct annual tabletop exercises to simulate attack scenarios, ensuring that staff members understand their roles during a cybersecurity incident.

How NVIS AI can eliminate these cybersecurity risks

NVIS AI offers a powerful, multilayered approach to protecting community banks from advanced cyber threats. By incorporating innovative security features such as peer-to-peer (P2P) communication, Zero Trust architecture, encrypted data-in-transit, and blockchain technology, NVIS AI addresses the unique challenges banks face in today's cyber landscape.

1. Protecting against ransomware and phishing with P2P architecture

Ransomware and phishing attacks often exploit centralized network vulnerabilities to infiltrate bank systems. NVIS AI's peer-to-peer communication model eliminates these weak points by allowing direct, encrypted communication between authorized endpoints. With no central server to target, attackers have a much harder time intercepting or tampering with data, reducing the likelihood of successful ransomware and phishing attacks.

2. Zero Trust model to prevent unauthorized access

NVIS AI employs a Zero Trust architecture that verifies every access request based on identity, device health, and security policies, regardless of the request’s origin. This approach ensures that even if attackers gain access to one part of the network, they cannot move laterally to other systems or access sensitive information without passing through multiple layers of verification. This makes NVIS AI particularly effective against external-facing application vulnerabilities and account takeover attempts.

3. Secure data-in-transit with Layer 2 encryption

External threats like DDoS attacks and data breaches often exploit unencrypted data transmissions to intercept or corrupt critical information. NVIS AI's Layer 2 encryption secures data at the data link layer, ensuring that data remains unreadable during transit. Even if attackers attempt to intercept network traffic, the encryption renders the information useless, thereby protecting customer data and transaction details.

Conclusion

Cybersecurity is a top priority for community banks as they navigate the complexities of digital transformation. With persistent threats such as ransomware, phishing, external vulnerabilities, and DDoS attacks, banks must adopt a multifaceted cybersecurity strategy to protect their customers and assets.

NVIS AI provides a comprehensive solution to these challenges by leveraging advanced technologies like peer-to-peer architecture, Zero Trust models, and Layer 2 encryption. By implementing NVIS AI, community banks can significantly enhance their cybersecurity posture, protect sensitive data, and maintain customer trust in the face of an ever-evolving threat landscape.

For banks seeking to stay one step ahead of cybercriminals, NVIS AI is the security solution that offers robust, innovative, and scalable protection tailored to the unique risks of the financial industry.

Schedule a demo or contact our team of experts today.