In today’s fast-paced digital world, cybersecurity threats loom large, especially within the banking sector. As we increasingly rely on digital solutions to manage our finances, the potential impact of a cyberattack cannot be overstated. According to Dr. Jane LeClair, Chief Operating Officer of the National Cybersecurity Institute, “50% of small to medium-sized businesses (SMB) have been the victims of cyberattack and over 60% of those attacked go out of business.” These breaches can have devastating effects on both finances and reputation. Financial institutions, like Veritex Community Bank, understand this and are committed to offering robust security measures to protect their customers.
Banking with an institution that prioritizes your security is paramount. Veritex Community Bank, Member FDIC, does exactly that. The assurance provided by FDIC insurance means that customers’ deposits are protected up to the legal limit of $250,000, adding an invaluable layer of security. Veritex combines this with dedicated customer service and a suite of technologies tailored to each account holder’s needs, thereby helping assure businesses that their resources are well-protected.
Know Your Enemy: Types of Cyber Attacks
What is Phishing?
Phishing remains one of the most prevalent forms of cyberattacks as 57% of organizations experience phishing attempts on a weekly or daily basis.
Phishing is the second most common reason for data breaches and the costliest.
Fraudsters use seemingly legitimate emails, text messages, or phone calls to lure potential victims into providing sensitive information like login credentials, credit card numbers, or social security numbers to hack their way into their finances or personal records. However, phishing is just the tip of the iceberg; there are several other methods attackers use to compromise financial data, such as malware, ransomware, and man-in-the-middle attacks.
What is Business Email Compromise (BEC)?
Business Email Compromise (BEC) is a type of phishing attack that uses legitimate email addresses to trick people into sharing sensitive information or making financial transactions. Attackers carefully select their targets based on their roles and access within the organization to maximize their chances of success.
BEC targets include employees within organizations who have access to financial resources or sensitive data.
This type of scam typically targets companies that conduct wire transfers. In a BEC scam, an attacker might gain access to a corporate email account and impersonate the business owner to request a funds transfer.
Once this information is made available, these issues manifest in various ways; including unauthorized transactions, identity theft, and data breaches that can affect not just the individual but also the entirety of the business. The sophistication of these threats makes it crucial for banks and customers to stay vigilant.
Protecting against BEC requires a combination of employee training, verification processes for financial requests, and IT security measures. Veritex Community Bank has helped many of our customers learn how to identify BEC so as not to become a victim and offers treasury products designed to provide protection from cyberattacks.
How to Outsmart Hackers From Breaking Into Mobile Banking Apps
Mobile banking apps have become a prime target for cyberattacks as they hold the key to personal financial data and access to funds. Hackers often use phishing, malware, or fake apps to trick users into giving away their login details. Even using an unprotected public Wi-Fi hotspot can put you at risk as hackers often try to dispense malicious software onto your device or steal login credentials this way.
Once inside, they can steal money, clone identities, or even lock users out of their own accounts. It’s crucial for both banks and users to stay vigilant and one way is to regularly update security features. Other forms of safety are setting up two-factor authentication, creating complex and unique passwords, and activating security alerts.
Fortify Your Data: Proactive Steps to Cyber Safety
Protecting your data is an essential component of cybersecurity in banking. Veritex Community Bank offers a variety of products to help you keep your data safe. Keep these strategies and ideas in mind:
Education and Awareness
The first line of defense is education. Staying informed about the latest fraudulent trends and sharing this knowledge with your team can significantly reduce the risk of falling victim to a cyberattack. It’s essential to recognize the hallmarks of a scam and to understand safe online practices.
Bank Support and Services
Veritex Community Bank offers tools and services designed to safeguard your financial resources. Some of these resources include enhanced security for online banking, fraud monitoring systems, and our customer support team trained to handle cybersecurity incidents. Reach out to a Veritex banker to discuss products and services that would safeguard your business.
Keep Software Updated
Using outdated software can leave you vulnerable to exploits and malware designed to take advantage of known weaknesses that newer versions have patched. Regularly updating software is a vital security practice that all businesses should follow. Current software has the latest defenses against cyber threats, providing better protection for your sensitive data.
Alert and Aware: Identifying Cyber–Attack Red Flags
It’s crucial to recognize the warning signs of banking impersonation scams. Here are a few signs to be on the lookout for:
Unsolicited Communications
Be cautious of any unexpected emails, calls, or messages from individuals claiming to be from your bank. Always verify the identity of the caller or sender.
Urgent or Fear-Inducing Language
Scammers often use scare tactics to create a sense of panic and to prompt quick action. They pressure you to log into or send money with payment apps. Genuine institutions will not rush you into making hasty decisions or send money with payment apps.
Links in Text Messages or Emails
Avoid clicking on suspicious links or opening attachments in unsolicited emails or messages. Always verify the URL and ensure it is the official bank website. A good rule of thumb if you believe you may be on the verge of becoming a victim to cybercrime is to call the number you have on file for your bank. Do not call the number texted or emailed to you.
Requesting Personal Information
Be wary if you are asked to provide sensitive information like passwords, PIN, or account numbers through unsecured channels like phone or email. If you receive a text message asking for personal information, it’s likely a scam. Banks typically do not request sensitive information in this manner.
What Does Veritex Community Bank Offer to Protect My Account?
ACH Positive Pay
ACH (Automated Clearing House) Positive Pay is a tool offered by Veritex Community Bank that can be incredibly effective in preventing unauthorized or fraudulent ACH transactions. ACH works by allowing account holders to set parameters for ACH withdrawals and deposits. Any ACH transaction that doesn’t meet these preset criteria will trigger an alert and require the account holder’s review and approval before it can be processed. This level of control can be instrumental in stopping fraudsters in their tracks.
Real-Time Alerts
Turning on account alerts is another smart way to keep tabs on your bank activity. Alerts for transactions, balance levels, and even login notifications can inform you about what is happening in your account in real time, enabling you to quickly identify and react to any unauthorized activity. Quick detection is critical, as it allows for immediate action, potentially limiting the damages caused by fraudulent activities.
The Chief Technology Officer of Veritex Community Bank was recently on WFAA’s Good Morning Texas in Dallas. He shared tips on how to protect your business and highlighted some of the bank’s products mentioned in this article.
What to Do If You Fall Victim
If you suspect that you or your business has been targeted by a banking impersonation scam, take immediate action:
Notify Your Bank: Inform your bank of the incident as soon as possible to secure your accounts and prevent further unauthorized transactions.
Don’t Delay: Acting quickly after an event can minimize damage.
File a Police Report – If you have lost money, file a police report.
Change Your Password: Change your password if you shared any sort of username or password.
Report the Scam: Report the scam to relevant authorities, such as the Federal Trade Commission (FTC) 1-877-FTC-HELP (382-4357) and file a complaint with your local law enforcement.
Document everything about the financial fraud. The more information you have, the better armed you will be to assist an investigation, and the better prepared you will be against future cybercrime attempts.
The Inevitable Rise of Fraudulent Activity
Unfortunately, the reality is that fraudulent activity is ever on the rise. Businesses must adapt continuously and employ stringent cybersecurity measures to protect themselves. Taking advantage of the tools and services offered by Veritex Community Bank is an important step in constructing a formidable defense against would-be attackers.
Bank with Confidence: The Role of Veritex Community Bank
As cyber threats evolve, so must our approach to cybersecurity in the banking industry. Education, updated software, and tools like ACH Positive Pay play a pivotal role in fortifying defenses against malicious actors. Building strong partnerships with banks that offer robust security measures and FDIC insurance, such as Veritex Community Bank, further enhances the ability of businesses to operate securely in the digital space. Veritex Community Bank has dedicated an entire section of our website to banking, online, debit card, mobile app and P2P security, you may access the site here. By staying educated, vigilant, and proactive, businesses can build resilience against the cyber threats that loom over the horizon, ensuring that their finances remain secure today and into the future.
Sources:
“The Impact of Cybersecurity On Small Business”, Course 10, Tutorial 1, https://www.sbir.gov/sites/all/themes/sbir/dawnbreaker/img/documents/Course10-Tutorial1.pdf
“50+ Phishing Attack Statistics for 2024” March 12, 2024, https://jumpcloud.com/blog/phishing-attack-statistics
