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5 Biggest Physical Security Threats for Banks And Financial Institutions

Security is the basic necessity for banks and other financial institutions. Every day, a massive amount of money transactions occurs in banks, which too happens in front of the public. Hence, it's evident that these places are always vulnerable to risks like robberies, thefts and fraudulence.

Unfortunately, in many ways, physical security is one of the most overlooked parts of protecting banking institutions.

Even in this age of cybercrimes, hacks, malware attacks and DDoS attacks, we can't overlook the increasing number of bank robberies and thefts occurring in our surroundings.

Without much ado, let's delve deeper into the biggest physical security threats for banks and ATMs.

1.     Overlooking the Importance of Banking Security

Retail sector banks are the prime targets for criminals as these banks have always faced some inherent security challenges.

Today, when banks are more focused on increasing their revenues and improving customer operations efficiently, they often ignore assessing risks of physical security threats.

With the advent of technologies, the risk of cybersecurity has got the lion's share of attention. As a result, banks and other financial institutions are spending millions to tighten their online and cloud-based security services.

In the midst of everything, all brick-and-mortar banks still follow the conventional way of physical security to protect their assets, finances, employees and customers.

2.     Conventional Surveillance and Access Control Systems

Most retail banks in India still rely on conventional security systems such as age-old analogue video surveillance and access control systems. The major problem with these systems is that they leave little room for automation or integration.

As a result, in response to any real-time threat, we have to depend on manual, operator-driven monitoring and intervention, which is not enough to defend or mitigate the security hazard.

3.     Skimming at ATMs

ATM kiosks are one of the most vulnerable points for security threats. A large number of ATMs in our country remain unguarded and without surveillance. 

Hence, fraudsters often use these opportunities to attach skimming devices to ATMs from where they can access important banking details such as account numbers and PINs.

While using the ATM, customers may not be aware of the device attached to the machine, and without their knowledge, all crucial information of banking details are transferred to fraudsters.

4.     Limited Access to Integrated Security Systems

Technologies used in most banks are typically based on a proprietary, standalone system. Therefore, most CCTVs, access controls, and other security systems have limited options to support any coordinated incident response.

 When an organized crime like robbery or theft occurs in the bank, banks are often unable to prevent the threat due to their limitation to access integrated security at multiple sites from a central location.

5.     Lack of Trained Security Professionals

Banks and financial institutions must have several layers of security, which efficient security professionals should strategically design.

Nowadays, many banks have outsourced the physical security parts to professional banking security service providers. These professionals are well-trained to look after the security of the building, employees, customers and visitors to the bank.

Conclusion

Because of these issues mentioned above, most retail sector banks and other financial institutions are suffering from constant security threats, constantly growing their business costs.

 

Instead of relying on old security systems, they look for feasible solutions like outsourcing banking security services to third-party service providers. A professional banking security solution has proven expertise, training and equipment to deal with all security threats to protect your investments.



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