Regulators and Banks Need to Increase Vigilance and Anticipate Cyber ​​Attacks on the Banking System at Indonesia

INTI,- The digitalization of banking services has brought numerous benefits, including greater convenience, speed, and access to financial products. However, it also exposes the banking system to cyber attacks, which can cause significant losses for both banks and customers. As Indonesia continues to grow its digital economy, it is crucial that regulators and banks increase their vigilance and prepare for potential cyber attacks.

Cybersecurity threats are becoming increasingly sophisticated, and cybercriminals are finding new ways to bypass security measures. Cyber attacks can come in various forms, such as phishing, malware, and ransomware, and can cause serious damage to the banking system, including loss of funds, identity theft, and reputational damage.

Indonesia's banking system has experienced several cyberattacks in recent years, including the ongoing alleged ransomware attack on Bank Syariah Indonesia (BSI) systems. It is known, the banking system resulting from the merger of four Islamic banks has been paralyzed since Monday (8/5/2023) and has not even fully recovered until this weekend. Hacking in the banking world did not only occur at Bank Syariah Indonesia (BSI) but also at other banking institutions. These crimes have cost banking institutions and customers hundreds of billions annually. These attacks highlight the need for greater vigilance and preparedness among regulators and banks.

Regulators play a crucial role in ensuring the safety and stability of the banking system. The Financial Services Authority (OJK) has issued various regulations aimed at strengthening cybersecurity measures in the banking sector. These include requirements for banks to establish cyber risk management frameworks, conduct regular risk assessments, and report cyber incidents to the authorities.

While these regulations are a step in the right direction, more needs to be done to anticipate and mitigate cyber attacks. Regulators need to be proactive in identifying new threats and developing appropriate responses. They should also collaborate with banks and other stakeholders to share information and best practices and promote a culture of cybersecurity awareness.

Banks also need to take a more proactive approach to cybersecurity. They should invest in advanced security technologies, such as artificial intelligence and machine learning, to detect and respond to cyber threats in real-time. They should also conduct regular cybersecurity training for employees and establish clear procedures for responding to cyber incidents.

One effective approach to increasing cybersecurity in the banking sector is to adopt a risk-based approach. This involves identifying and prioritizing the most critical assets and systems and allocating resources accordingly. Banks can use risk-based approaches to develop targeted cybersecurity strategies and allocate resources more effectively.

Another important step is to enhance collaboration and information sharing among banks. Banks should establish formal information sharing mechanisms, such as information sharing and analysis centers (ISACs), to enable timely and effective sharing of information about cyber threats and best practices.

In addition to increasing vigilance and preparedness, it is essential to raise awareness among the general public about the importance of cybersecurity. Many cyber attacks are successful because of human error, such as clicking on a phishing email or using weak passwords. Banks and regulators should invest in public education campaigns to promote safe online behavior and raise awareness about the risks of cyber attacks.

In conclusion, cyber attacks pose a significant threat to Indonesia's banking system, and it is crucial that regulators and banks increase their vigilance and prepare for potential attacks. While regulations and guidelines are important, they are not enough on their own. A proactive and collaborative approach, involving risk-based strategies, advanced technologies, and public education campaigns, is necessary to protect the banking system and ensure the safety and security of customers' funds. ***. Hans