In recent years, Singapore has been steadily strengthening cybersecurity measures, especially within critical sectors such as healthcare and finance. This increased level of regulation, in response to intensifying cyber-threats, has placed increased pressure on financial institutions to meet compliance requirements.

The Monetary Authority of Singapore (MAS) is the primary driving force behind these changes. The digital banking sector is expected to be constantly improving, in order to safeguard both public interests and their own. As such, it’s vital for institutions to stay aware of the latest cybersecurity measures and meet these regulations, to avoid fines and penalties.

Most Common Threats to Online Banking

The online banking landscape is continuously threatened by an array of cyber risks. Financial institutions must recognise and strategise against these threats to safeguard their operations and client data. Some of the top cyber-security threats are:

Security Breaches: Data breaches are a common cyber-security risk in the banking industry. Allowing customer data to be stolen is a major violation, and banks can receive heavy penalties for such a thing. These breaches include customer identity theft, financial fraud, or  . Both customers and institutions can suffer significant financial losses in the wake of these threats, making it vital to defend against them.

Security Breaches: Cyber attackers are able to disrupt services and greatly inconvenience customers. On top of that, failing to take sufficient measures against disruptions is often penalised by monetary authorities, leading to hefty fines and suspension of activities. Keeping banking institutions cyber-secure is integral in avoiding these punishments and inconveniences.

Singapore’s Cyber Security Agency identified 81,500 malware infected systems in 2022, showing the prevalence of intentional cyberattacks against users and financial institutions.

Insecure Configurations: Insecure configurations in banking systems can lead to significant vulnerabilities, exposing financial institutions to cyber threats. This includes misconfigured network devices, unpatched software, weak passwords, and improper file and directory permissions. Such oversights can provide attackers easy access to sensitive information, leading to data breaches and disruptions.

One notable incident in the finance world was the Capital One data breach of 2019, which resulted in 100 million credit card applications being stolen by an attacker. This was caused by an insecure web application firewall configuration, and was exploited by vulnerability monitoring software.

To ward off these cyber-security threats, banks need to invest in the right countermeasures.

Countermeasures Against Online Banking Threats

In light of these threats, banks need to implement tailored countermeasures to protect their assets against cyber attacks.

SPTel provides virtualised cybersecurity solutions such as a Managed Security Service suite, as well as Quantum Key Distribution systems that are future-proofed against decryption by Quantum Computers.

Managed Security Services

Managed Security Services offer businesses a robust solution to cyber-threats. These services are outsourced to third parties such as SPTel, ensuring hassle-free threat management supported by security experts.

Typically, these services encompass:

• Real-time surveillance to detect suspicious activities
• Intrusion detection systems that identify potential threats
• Implementation of security protocols such as firewalls to ensure secure system connections
• Regular security audits and compliance checks

These services allow your organisation to proactively manage risks and mitigate cyberattacks that could jeopardise financial systems. Managed Security Services also help to reduce setup costs, by placing upkeep and maintenance in the hands of a third party.

Quantum Key Distribution (QKD)

Quantum Key Distribution (QKD) is an advanced countermeasure against hacking and decryption. Traditional encryption can be vulnerable to quantum computing in the near future, and QKD serves as an early investment against these threats.

Why use QKD?

As a financial institution, your database holds a large amount of sensitive financial information. Bank details, transactions, investments, and other data are all high-value targets for hackers. Hackers who are able to decrypt this data are able to steal money, manipulate accounts, and create massive implications for you and your customers. At the moment, QKD stands as an unbreakable solution to data theft, even against quantum computers that are predicted to overwhelm all current encryption methods.

There has been news of Quantum computers having the potential to break current encryption and this poses a major security concern where MAS has mentioned that financial transactions and sensitive data processed by Financial Institutions are at a huge risk with the advent of quantum computers. On 20 Feb 24, MAS has circulated an advisory for those in the Financial Services Industry (FSI) to start developing strategies and building capabilities to address cybersecurity risks associated with Quantum technology. This can include enhancing the technical competencies of staff, reviewing internal policies, developing risk mitigation strategies as well as considering proof-of-concept trials with quantum security solutions as early experimentation can help organisations make informed decisions on securing their business in a Quantum future.

What Is QKD?

QKD utilises the principles of quantum mechanics to ensure secure communication, establishing cryptographic keys that are theoretically unbreakable. It involves sending encoded signals over a secure pipeline, where any attempt at eavesdropping disturbs the signal and can be detected by legitimate parties.

SPTel, together with partner SpeQtral, has been appointed by the Infocomm Media Development Authority (IMDA) of Singapore as the official operator for the National Quantum-safe Network plus (NQSN+) project. This will deliver quantum-safe solutions to organisations on SPTel’s diverse, ultra-low latency fibre network, enabled by Toshiba’s Quantum Key Distribution system. With this solution, organisations can benefit from ultra-secure connectivity that is resistant to attacks by Quantum Computers, thus future proofing their business.

SPTel was selected to support the NQSN+ project due to our unique strengths:

• Access to Critical Infrastructure – SPTel has built the National Quantum-Safe Network with equipment housed at SPTel trusted nodes which are Critical Information Infrastructure (CII) for secure key generation and storage.
• Ultra Resilient Network– Supported by SPTel’s true network diversity (with network cables laid alongside the power grid) and lowest network latency of <1ms island-wide on our core network for more reliable key transmission.

SPTel offers QKD-a-a-Service with low upfront investment which simplifies the adoption of Quantum-Safe connectivity. Businesses can work with us to integrate these quantum-safe solutions into their own data management, for unparalleled security of critical information. This commitment to quantum-safe networks prepares the financial sector for emerging technologies and digital hazards.

Multi-Layered Security Approach

Banks in the finance sector must take steps to enhance their cybersecurity framework by integrating multi-level security measures to defend the organisation holistically:

Access Controls: Access to the bank’s online services is tightly regulated through a username and password system, ensuring that only authorised individuals can perform transactions.

Robust Firewalls: The bank has implemented multiple layers of firewalls, creating a barrier against external threats and safeguarding sensitive internal information.

Strong Encryption: Combating threats of today by utilising 128-bit Secure Sockets Layer (SSL) encryption, while exploring Quantum Encryption technologies to safeguard for the future.

Quantum-Safe Networks: Leveraging Quantum key distribution technology to enable tamper free transmission of encryption keys to defend against Quantum Computers that threaten traditional encryption methods.

Implementing multi-layer cybersecurity measures and ensuring they are kept up-to-date and future proofed will lead to greater customer trust and confidence in our financial institutions.

Providing Countermeasures For Cyber-Threats

In the face of evolving cyber threats, the banking sector must continuously enhance its cybersecurity protocols. Online banking systems are prime targets for cyber criminals due to the sensitive financial information they hold, and failing to meet regulations and protect your data can lead to heavy consequences.

SPTel is a provider of digital security services such as our Managed Security Service suite and Quantum Key Distribution cryptography. By making use of these options, you can obtain hassle-free digital solutions for your online banking platforms, and stay ahead of cyber-threats.

To find out more, contact us here.