Wednesday 9 December 2015

Security Risks to Barclays Bank Information System

Introduction
Barclays bank is one of the highly reputable multinational organizations that offer financial services. In fact, the level of competition that it poses to other financial institutions is higher, mainly due to the adoption of a digitalization to most of the operations taking place. This has tremendously led to efficiency, effectiveness, and timely service provision, hence improved customer satisfaction. However, there is a negative part of the adoption: the firm's information system is under threat of security risks originating from malicious hackers who implants backdoors and utilize the security loopholes in the system. These malicious security threats can also come in the form of viruses, worms, computer spams, spyware and botnet.  Fully aware of these, the management of Barclays bank has invested a significant funding on the computer security through hiring of white-hat hackers, acquisition and installation of anti-viruses, and training of the security staff on computer security measures.
Therefore, this paper seeks to discuss the effect brought by the computer viruses to the financial institution, the effectiveness of the tools employed in combating these threats, and also risks faced by the bank that emanates from these security threats.
The effect of Computer Viruses and Malware on Barclays’ Information System.
There are various effects to system security that arises from viruses and malware is. These are discussed below;
1.      Loss of the Vital Organization Classified Data to the Competitors.
            In order to outdo each other, competition levels amongst organization can peak at unfair levels. Every year, Barclays Bank faces numerous attacks to its server system which can be traced back to other financial institutions. These institutions hire hackers that can be able to launch viruses and malware that have the ability to create backdoors on the computer system. Eventually, the competitors can be able to acquire data from Barclays, which can then be used to gain a competitive advantage. The data can include both short-term and long-term strategic plans for the financial institution.
2.      Emptying of Customer’s Financial Accounts.
            Some computer viruses, worms, and spyware are specifically designed for transfer of digital information concerning financial accounts of customers. This information can later be used to steal finances from the customers. Given the sensitivity of the matter, most financial institutions fail to disclose the information regarding the security breach on customer data for the fear that they will lose the customers. However, the Barclays bank has in the past acknowledged this imminent threat, but promised to find the most effective ways in which to combat the same.
3.      Slowed Computer Information System.
            There is an existence of a specialized computer virus that when launched, they have the capability of self-replication. Others are able to infinitely re-launch on the system, hence alarmingly increasing the level of computer activity. Eventually, the computer information system slows down or crashes, thus minimizing the effectiveness of the system (Filiol, 44).
4.      System Data Corruption
            Viruses and malware can distort and corrupt the financial information contained in the information system.  In the case of Barclays bank, data contained in the information system includes the financial details of customers, transaction details, employee information, corporate social responsibility data and managerial information. Loss of such data is quite a disadvantage to the organization, especially if it is permanently corrupted, hence irrecoverable. To combat this, Barclays bank has heavily invested on a data back-up system for easier retrieval in case of a loss.  Additionally, some information is still kept manually and in analog form.
Information System Security Measures
1.      Training:
            Barclays Bank has initiated a program for periodic training of staff on information system security. It involves the creation of awareness of the imminent threat posed by the viruses, their evolution, and the ways in which it can be prevented. For instance, it is recommended that the employees should avoid opening spam emails to avoid planting backdoors on the system unaware. They are also trained on the ways of strengthening their passwords to avoid cases of identity theft.
2.      Hiring of Computer Security Experts
            A computer security expert refers to the highly trained and experienced personnel on ways of detecting and effectively neutralizing system attacks. Including Barclays bank, most of the financial institution are annually setting aside increasing amount of funding for the ever-growing cluster of threats to the information system. It is worth investing on this in order to avert the heavy losses arising from the loss of customer data and the firm’s financial strategic information. Before causing significant damage, computer viruses can be detected by the security experts, hence diminishing their intended harm.
3.      Information System Data Back-Up
            Viruses and malware have the ability to corrupt data. Depending on the type of virus, corrupted data is hardly retrievable and can be lost forever. In the wake of this realization, Barclays Bank has set up a back-up system that enables retrieval of the data. All the vital information stored in the information system is automatically backed up on a highly secured cloud system. As an additional security measure, the data is also stored on a ground data back-up facility.
4.      Installation of Anti-Spyware and Anti-Virus Software.
            As virus and malware menace grows, there is a witnessed rise in the number of start-up technology companies that specializes on Anti-Virus and Anti-Spyware Development. It is approximated that most of these start-ups are the same that creates viruses and spyware, and then offer a solution (anti-virus) at a fee. An anti-virus is application software that has the ability to detect viruses, malware and spyware. Subsequently, this software recommends to the system user to perform a full system scan and eliminate the system threat. Its installation is one of the effective ways in which to eliminate a threat. However, there is a need to constantly update them for detection of the latest threats to the system. This usually costs a significant amount, but worth it (Bidgoli, 450).
Business Risk
            Any organization — including financial institutions – that does not invest ways to combat the risks brought by the information security attacks, faces the risk of losing market share to other competitors. For instance, in a financial institution, realization by the account holders that there is a likely security breach for the information system that can lead to loss of their account information; they will withdraw and empty their accounts for the fear of loss. Ultimately, they will open accounts at a competitive financial institution that invests on system security measures. In turn, this will lead to heavy losses to the departed institution, which can trigger the inability to meet operation costs and other financial obligations. Eventually, the bank services will be terminated abruptly as a result of bankruptcy.
Recommendations.
The following are my recommendations that can help the organizations in reducing computer virus risks:
a.       The information systems should regularly be inspected for any sign of abnormality in services brought by viruses. This can be done through uses of anti-viruses to fully scan the systems. Sophisticated anti-viruses come with an option of auto-scan that enables the system to eliminate threats all by itself.
b.      System security experts should be employed. Additionally, they should be regularly trained to refresh and update them on the latest causes of Information system threats.
c.       Acquisition and regular update of the anti-virus software. Therefore, funds should be set aside in order to meet this cost.
d.      Computer security awareness creation should be implemented by the computer security experts towards the employees. This should be done periodically.
e.       Computer security reminders should be pinned at the workplace notice boards. This will act as a reminder to the information system users on security matters.


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