Banking sector vulnerable to cyber crimes

It is worrying that almost five years after the USD 101 million cyber heist from the Bangladesh Bank's account with the Federal Reserve Bank in New York, most banks in the country still do not have an effective cyber security system. Reportedly, only four out of 60 banks in the country have set up cyber security operation centres in line with a Bangladesh Bank directive to prevent large-scale cyberattacks. After giving the directive in 2016, the central bank has also written to the banks from time to time asking them to put in place a cyber-security system, but to no avail.

While most banks seem uninterested in setting up such a system as they would need additional funds for the purpose, there are also many banks which cannot set up the system despite having the financial capability. The problem they are facing is the lack of a skilled manpower to do the job.

As more and more people are becoming dependent on online banking during this pandemic, our banking system is now even more vulnerable to cyber risks, according to experts. And the risks will increase further in the days ahead due to the rapid expansion of digital banking. Therefore, there is an immediate need to install such a system in all banks which would monitor and improve their security posture while preventing, detecting, analysing and responding to cyber-security incidents.

Since a lack of skilled manpower is one of the main reasons for many banks' failure to put the system in place, the government agencies should help create skilled manpower in the banking sector through their IT security units. As we know, the police and Rab have strong wings to tackle cyber-attacks, so they can also play a positive role in improving the skills of the IT officials in banks. The central bank should also fix a deadline for the banks for setting up the cyber security operation centres. Given what is at stake, this must be done immediately and followed through by the central bank.