Overview
In many ways the security of a banking system is no different to the security of a system which belongs to any other commercial organization. However, the public awareness of the need for good computer security for banking systems is very high. Perhaps this awareness is raised by the association with Electronic Funds Transfer (EFT), and the heavy reliance which is placed upon very large international financial telecommunications networks.
However, EFT, is not the only systems activity in banking. Many security practices are very similar to those of any other business organization. The security of banking systems is also very visible to a bank customer (ie, magnetic stripe cards, physical security of bank premises etc), and computer security in banking systems is therefore open to much debate and discussion, not only within the public eye, but also within the computer security industry.
It can be very difficult for a layman to gain an insight into the vast scale of electronic financial activities. Much of the "baseline" good security practices in terms of backup, contingency, physical security, accounting and system controls which help to mitigate the likely risks, are now accepted practice within banking computer networks. These risks are also well understood by security practitioners. Much more exciting to the layman are the high technology security developments within large scale banking systems.
This Chapter therefore concentrates upon some of the large scale financial networks, banking security technology, the systems security features, and in particular the security issues which arise from the use of banking networks, by both corporate and personal customers. The security aspects of card technology (plastic and smart), which are an important aspect, are also discussed for financial institutions. Some practical business security issues, and likely future directions are indicated. The Chapter is structured to provide a description of the nature of the business risks, and the type of security countermeasures which are used for:
- International banking networks (e.g. SWIFT)
- Regional banking networks (e.g. CHAPS)
- Private electronic banking networks for corporate banking and personal banking customers
- Security for centralised bank host systems
- Future trends and directions
About Thales
Thales is a leading international electronics and systems group, addressing Defense, Aerospace and Security markets worldwide. Thales's leading-edge technology is supported by 22,000 R&D engineers who offer a capability unmatched in Europe to develop and deploy field-proven mission-critical information systems. To this end, the group's civil and military businesses develop in parallel and share a common base of technologies to serve a single objective: the security of people, property and nations. The group builds its growth on its unique multi-domestic strategy based on trusted partnerships with national customers and market players, while leveraging its global expertise to support local technology and industrial development.
