Why is Software Security Testing critical for Banking & Financial Services?
The banking and financial services have seen a
paradigm shift towards the use of digital technology to make things simpler,
convenient, accurate, and seamless for every stakeholder. The successful
functioning of these services has ramifications for other sectors of the
economy such as manufacturing, logistics, healthcare, entertainment, education,
hospitality, and aviation, among others. Just think of these sectors leveraging
banking and financial services in various ways; taking loans, paying salaries
and utility bills, doing bookings, running savings and current accounts, and
many others. Customers too have taken to online banking as if there is no
tomorrow.
The seamless ease through which banking apps have
facilitated transactions (and other banking-related activities) for customers
and other stakeholders has made these apps immensely popular. So, whether it is
about checking the balance amount, managing transactions using a digital
wallet, transferring money, or paying utility bills, among other activities,
there is no denying the ubiquitous role of such apps. However, with ease of
operations and popularity comes the threat of cybercrime. Malevolent actors are
prone to using all the technological resources at their command to gain access
into such apps and steal critical financial data. If we go by statistics then
the COVID phase has seen an increase in cyber attacks as given below:
·
74% of banks and insurance companies have faced
issues of cybercrime.
·
From the onset of the pandemic, there has been a
29% rise in cybercrime.
·
42% of financial institutions have attributed the
rising cybercrime to the remote working model.
Since the security of any banking or financial app
directly impinges on customer trust, it needs to be accorded the top-most
priority. So, in addition to testing the performance or usability of such
applications, developers should focus on conducting software
security testing and fix any vulnerability lurking inside. Modern
banking applications are multi-tier having interfaces with several third-party
applications where transactions by concurrent users take place in real-time.
The tracking of high-value, as well as a large number of transactions, requires
robust storage and risk management systems, which can be challenging.
Challenges to application security testing
Modern banking and financial applications are very
complex and multi-dimensional. They offer a host of testing challenges
including security.
Updates in real-time: Banking
applications are mostly integrated through APIs with other applications of
different configurations. These need to be updated periodically to ensure the
security, functionality, performance, and usability of the application.
However, updating the configuration of such apps in real-time can be a
challenge.
Consistent across systems: Today’s
users use a range of device platforms to run various applications. These
devices come with different screen sizes, resolutions, operating systems,
browsers, and other hardware configurations. So, in order to ensure the consistent
performance of a banking app across device platforms, it should be subjected to
stringent testing processes, including software
security testing.
Data transfer and system
migration: There are times when a banking application is
migrated from one system to another, say from one cloud server to another, to
ensure better performance and security. During such times, the end-to-end
testing of an application can have issues related to data transfer and
validation.
Why is security testing important for banking applications?
The universal use of banking applications has made
them a target of malicious actors who leave no stone unturned to achieve their
nefarious objectives. They become successful in breaching the security of such
apps by exploiting the vulnerabilities. Let us understand why cybersecurity
testing is important for banking applications:
Digital convergence: Banks and
financial institutions have invested heavily in transforming/migrating their
operations to digital platforms. The complex banking applications enabling the
seamless conduct of financial transactions is possible on desktops, laptops,
tablets, notebooks, and smartphones of different makes and configurations. To
ensure the security of applications across device platforms the security testing services should focus
on conducting end-to-end testing.
Regulatory compliance: With the
increased threat of cybercriminals and the devastating impact of cybercrime on
the economy, banking operations, and customer confidence, governments and
international agencies have devised certain regulations. These include PCI DSS
(Payment Card Industry Data Security Standard), ANSI (American National
Standards Institute), ISO/IEC 27001, CCPA (California Consumer Privacy Act),
OWASP, and GDPR (General Data Protection Regulation), among others. If a
banking application does not comply with the relevant security regulations, it can
attract legal suits and heavy penalties. Besides, the negative publicity
received by such banks can erode public confidence in them.
Secure payment integrations: The entire
phalanx of e-commerce is based on the successful functioning of the payment gateways.
However, the APIs connecting the banking applications with e-commerce platforms
can have inherent vulnerabilities or bugs leading to unsafe transactions. If
left unaddressed, these vulnerabilities can be exploited by cybercriminals to
gain access to the financial details of customers using the payment gateways.
These vulnerabilities can only be tracked and remedied if end-to-end testing is
performed on the application.
Security and privacy: The
security and privacy of customers’ financial data and information should be the
top-most priority for banks and other financial institutions. Apart from
complying with the regulatory requirements, the safety, accuracy, and integrity
of customers’ or businesses’ data should be ensured at all costs. This can only
happen with vigorous vendor application security testing thereby delivering a
secure environment for seamless and secure transactions.
Authentication and data
encryption: The authentication of customers using the app and
data encryption to secure financial transactions are critical steps to secure
the application from fraudulent activities. It is only through rigorous cybersecurity testing that banks can
check if the multilayer validation process such as OTP (One Time Password) is
working or not.
New technologies: To achieve
a better customer experience and move ahead in the competitive market, banks
and financial institutions have introduced voice recognition and chatbots using
AI. However, these should be thoroughly tested before letting the customers use
them.
Conclusion
The critical role of banking applications in the
lives of the customers and nation cannot be underscored enough. These apps need
to be made simpler for seamless user experience and strong enough for online
transactions to be completed safely. And it is only through penetration
testing that any risks associated with such applications are
identified and fixed.
Resource
James Daniel is a software Tech enthusiastic &
works at Cigniti Technologies. I'm having a great understanding of today's
software testing quality that yields strong results and always happy to create
valuable content & share thoughts.
Article Source: medium.com
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