Security Threats to Banking

Security Threats to slangingINTRODUCTIONThe research project was undertaken to discover security threats and vulnerabilities experienced in First field swan Botswana cheek and how they diminish them, this was carried issue with the intention of making better and appropriate recommendations to combat them in the future and strengthen their information brass and innovate some of their mesh for better competitive advantage and customer satisfaction.FIRST NATIONAL BANK BOTSWANA BACKGROUNDFirst National Bank Botswana was registered in 1991, as a tout ensemble owned subsidiary of First National Bank Holdings (Botswana). Various acquisitions led to the margin becoming a listed entity on the Botswana Stock Exchange in 1993. Today, they score shifted from being a rim with a predominantly retail focus to one that also successfully serve the commercial and corporate market.Today products and services of First National Bank Botswana cover the requirements of everyone, from large co rporate companies to small businesses and the individual. As at January 2008, we operate with a network of 17 branches and a summate of 89 ATMs around the country. A strong customer foc apply culture ensures that our products ar correctly packaged and overtureible to all. https//www.fnbbotswana.co.bw/aboutus/index.html accessed on the 30 butt 2010. rushTo be recognised by all as the most well respected and most profit fitted leaders financial services institution of offshoot choice, building enduring and rewarding relationships with all our customers and amongst all stakeholders by the provision of exceptional customer service well skilled professionalism, reliable and efficient ripe products and solutions by our high achieving, motivated, proud and committed team, enabling us to get and supporting customers.VISIONWe collaborate, support and empower each other through the unchanging application of our aligned strategies and percentaged values, delivering maximum value to our customers and sharing the customer so as to add further value to them. Through this, we get and keep customers.CURRENT MARKET SITUATION ANALYSISCurrently the world was going through recession each and every organization across the globe mat up the impact of the economic meltdown. Despite global recession and tough competition from competitors like Barclays bank, Standard chartered, Stabic bank and Bank Gaborone etc, First National Bank Botswana proved to be the most innovative bank in Botswana and it made profit unlike Barclays bank gross revenue which had gone down, this shows that FNBB had increase in sales and market share.According to Imara report, September 2009, FNBB had a growth in turnover the bank posted a strong set of results despite operating in a challenging business environment. Net interest income grew by 30.6% to P522.90 million (FY08 P400.25 million) mainly driven by a 17.0% increase in loans and advances. Profit onward tax and profit after tax increased by 1 9.5% to P536.90 million and 8.7% to P406.72 million respectively.SIGNIFICANT MARKET SHAREAccording to Analyst Setlhabi P, 2009 FNBB is one of the leading banks in Botswana with the largest market share in terms of deposits (29.7%) and 2nd largest in terms of loans and advances (27.3%) after Barclays Bank Botswana.The pie chart above shows that FNBB has more market share in Botswana compared to other banks in Botswana.In terms of applied science advancement and Information system FNBB is the most innovative bank, it was the first bank to provide earnings and cell phone banking in Botswana to customers and it is currently the provided listed bank providing cell phone banking services.In a bid to reach the unbanked market, First National Bank of Botswana has launched its untested cell phone banking service, enabling banking activities such as balance enquiries, debate requests and the ability to make payments to third parties.Due to advancement in technology and Information system its market share has grown tremendously.FNBB SWOT ANALYSISBelow is a table showing the swot analysis of the First National Bank Botswana, from the table it shows that the bank has more strength, good opportunities than weakness and threats which is really good.PREVIOUS SYSTEMThe previous system was manual based before introducing this travel system, though they had computers nonhing was automated customers had to go to the physical bank to deposit money, pay the bills and some of the important information was rule booked on papers which crumb get lost or stolen easily.The system was costly to the bank because they had to use a lot of materials e.g. papers to record information and print the bank statement for customers and you would find that there will be long queues at the bank during the week. Customers could not dream buying items online, they manual system was time consuming and in some manner hindered the growth of the FNBB market share. Customers who wanted to open acco unts with the bank had to fill the application form, submit and wait for seven working days for their application to be touch and account to be opened. There was nothing like transferring the fund to third party account or interbank transfer the customer had to do it manual at the bank teller or cashier counter.CURRENT SYSTEM (S)The bank has several current information systems in place which has enhanced its performance and productiveness resulting in customer satisfaction and convenience hence customer loyalty to FNBB. According to Mr. Edwin M FNBB arouse the following information systems in use.Online BankingCustomers can access the bank account anywhere, anytime as long they have internet access where there are, and they can do any transaction paying bills, buy online, ruling balance, bank statement and transfer funds to third party.Cell Phone BankingNow with cell phone banking in place customer do not need to be behind a computer doing transaction, they can access their funds / bank account by using their mobile phones which is more convenient, profligate and user friendly. Its new cell phone banking service, enabling banking activities such as balance enquiries, statement requests and the ability to make payments to third parties.The service is accessible through any handset in Botswana and uses SMS or a menu-based technology for customers to complete their banking transactions, increasing mass market reach and adding functionality to First National Bank of Botswanas (FNBB) offerings.The new FNB Cell phone banking offering is a natural extension from the pioneering beginnings of the in Contact service, said Yolisa Lejowa, FNBB place of electronic banking. Initially the service will only be available on the Mascom network but we envisage activating FNB Cell phone banking on the Orange network as well, shortly.By introducing these systems the bank has saved a lot of money which would be used for stationery in the manual system and the bank saw a great unequivocal impact on their daily activities, long queues is the thing of the past, productivity, efficiency and market share has increased. New customers can even apply for bank accounts online without going to the bank as long as they provide valid details everything will be processed within a short period of time. Now customers have the bank virtual bank with them wherever they go.Some of the Information systems areTransaction Processing systemHuman resource Management system administrator management systemINFORMATION RESOURCE AND CONTROLAccording www.datamonitor.com doubtfulness of electronic banking (chief information officer) at FNBB has a critical role and responsible for the wide security of the organization, plan and implement technology advancement and innovations to ensure that FNBB stays atop of the market in the banking industry in Botswana. The Electronic bank head critical evaluate the security systems ability to protect bank and customer data.According to Eddie M in interviews response stated that chief information officer overlook the entire organization information system, to ensure that all resources are utilized within the budget and enforce higher security in the system to ensure business continuity. This is achieved by defining, updating, implementing IT strategy and align IT objectives and programs to enterprise objectives and strategies. By applying the above critical roles result in data privacy and confidentially, data integrity, authentication, non-repudiation. The head of electronic banking of FNBB set security privileges in the organization to ensure that certain areas and information is only accessed by authorized personnel or user.He carries out and enforces comprehensive security policy in the organization. According to www.fdic.gov/news/news/financial/1999/FIL9968b.doc A comprehensive information security policy should outline a proactive and ongoing program incorporating three componentsPreventionDetectionResponseE-banking services must be delivered on a consistent and timely stern in accordance with high customer expectations for a constant and rapid availability and potential high transaction demand. The bank must be able to deliver online banking services to all end-users and be able to maintain such availability in all circumstances.ORGANISATION SECURITYSYSTEM RISK clay risk is a potential problem, situation that if it materializes, may adversely affect the business operation or system operation. http//www.pathways.cu.edu.eg/ . According to Eddie M 26 March 2010 Interviews. The use of information system which is online banking and cell phone banking has brought some risks and threats which are as follows information theft, hacking of the system, System Failure due to hardware problem or power failure even software crushing, backup gets corrupted sometimes.The above table summarizes the system risks that exist with the use of information system some of the risks are intentional were the user or un authorized person get to do some modification in the system database/ some system components which will agree availability or integrity of the data produced, processed. Some of the threats are accidental where by the user discloses his/her online banking details leading to account hacking and money theft. Network give way/ interruption is one of the major threats, sometimes network hardware components fails leading to break of data transfer between computers and servers leading to online system been unable to function normal (down).Electricity blackout its a major concern in Botswana because it happens more often resulting in online banking and cell phone banking being inaccessible during the period, as cell phone network goes down during electricity blackout and some electronics components tends to fails as well leading to system failure as information systems are comprised of different electronics components. All the above mentioned system risks and threats are the main faced by First National Bank Botswana.SYSTEM RISK MITIGATIONTo mitigate risks and threats board of directors and the head of electronic banking must ensure that appropriate security control processes are in place for online banking. (FNBB Report, 2009). To deal with this risks authorization privileges and authentication measures, reproducible and physical access control, adequate infrastructure security to maintain appropriate boundaries and restriction on both external user activities and data integrity of transactions, record and information should be implemented in the bank. http//www.bis.org/publ/bcbs98.htm.SECURITYCLOSED CIRCUIT TELEVISION (CCTV)CCTV is used to capture and monitor all customer and employee activities inside and international the bank building for security reasons. Youll find CCTVcameras sweeping the perimeter and parking areas, lobbies, drive-up windows and ATMS. Almost everyone who has worked in the banking industry and many customers has used CCTV to prevent and/or get word illegal activity at banking facilities. Video tapes and digital recordings capture the faces and activities of everyone using bank properties. (Pirraglia W).The captured recordings are archived bydate, so prior recordings can be located and used to solve problems and help apprehend perpetrators of illegal bank activity. Most of the banks around the world have cctv installed in their buildings and around ATM terminals, so FNBB use CCTV for the comparable purpose as explained above, all of their building are monitored by CCTV.