Banking systems are prime targets for hackers. Recent ransomware attacks have caused millions in damages worldwide. But when customers lose money, the big question is: who pays?
Legal Precedents:
– In many cases, banks are liable if security negligence is proven.
– Customers may be liable if they were careless with passwords or devices.
– Insurance policies are emerging as a middle ground.
Case Study: Bangladesh Bank Heist (2016)
Hackers stole $81 million via SWIFT messaging vulnerabilities. Legal disputes over responsibility highlighted the gaps in global banking security frameworks.
Regulatory Landscape:
– EU’s NIS2 Directive for critical infrastructure.
– RBI cybersecurity framework for Indian banks.
– U.S. Federal Reserve guidelines on cyber resilience.
Future Outlook:
– Rise of cyber insurance in banking.
– AI-driven fraud detection.
– Tougher penalties for negligence.
Conclusion:
Cybersecurity is not just a tech issue—it’s a legal battlefield. The balance of liability between banks, customers, and insurers will define the next phase of digital banking.