What Should You Do If Your Bank Suffers A Data Breach?

A bank data breach can expose customers’ personal and financial information, increasing the risk of phishing scams, identity theft and online fraud. Understanding how data breaches happen and what steps to take can help you protect your bank account and sensitive information.

How Does a Bank Data Breach Happen?

Although such incidents don’t occur intentionally as with customers, banks are also victims of such misleading fraud. However, common reasons for data exposure in a bank include:

• Cyberattacks: Hackers use software weaknesses or login information to get access to sensitive information.

• Employee Account Compromise: Access to employee emails or internal systems is achieved via stolen credentials or phishing.

• Third-Party Security Gaps: Customers' records could be exposed if the security of service providers dealing with banking information is weak.

• Human Error: Sensitive data can be exposed if not shared correctly, not configured properly in the storage system, or due to accidental disclosure.

• Phishing Scams: Tricks customers/employees into giving out their password, OTP and other private information.

What Risks Does A Bank Data Breach Create For Customers?

Exposed personal data may lead to more fraud even if the account balances are safe.

• Targeted Scams: Leaked information can be used in phishing email messages to tell people they have account problems or that their transactions are suspicious.

• Fake Bank Calls: Fraudsters might pretend to be authentic when requesting an OTP, PIN or password using personal information.

• Identity Theft: If exposed, identities can be used to impersonate customers or make fraudulent applications.

• Unauthorised Transactions: Criminals may be able to obtain further credentials and attempt to make payments or access accounts.

• Further Data Misuse: Criminals may combine information from different sources to make scams more convincing.

Don't assume that all the records that have been exposed are being used inappropriately. The threat level will vary based on the information accessed or whether the criminals gained additional access.

What Should You Do If Your Data Is Leaked But Your Money Is Safe?

Don't panic, but don't ignore the incident. Verify what information may have been shared, follow the directions given by your banks and monitor for suspicious calls and messages.

If these are any card details or login information that could be compromised, be sure to call your bank about the possible action you should take to either block the card or to reset your login. Maintain a close watch on your account, even though your balance stays the same, as leaked personal information could be used in subsequent scams.