The banking sector has seen a profound transition in the digital age, embracing online apps and APIs (Application Programming Interfaces) to deliver smooth and convenient customer service. While these technological developments have transformed the banking process, they have also given cybercriminals new opportunities to exploit weaknesses and conduct sophisticated assaults. If not adequately protected, web apps and APIs may become a bank's security infrastructure's weak points.
Web apps and APIs have become crucial components of the financial ecosystem as online banking and mobile apps gain in popularity. Customers can access their accounts, transfer money, pay bills, and complete other financial operations using web apps as the interface. Contrarily, APIs allow for smooth interaction between various financial systems and outside applications, enhancing the banking experience with specialised services. While there is no denying that these technological developments have increased the effectiveness and accessibility of banking services, they have also created new security risks. Banks must keep ahead of the curve when protecting their systems and client data since cybercriminals constantly develop inventive ways to exploit possible gaps in web apps and APIs.
Though it can never be completely ruled out, taking money outright from a physical bank is very much a "last century" strategy. Personal data is the currency of choice for cybercriminals today, and the web applications that clients, business partners, and workers use to accomplish a variety of online financial transactions serve as attack surfaces. Overall, banking is the third-most attacked vertical when it comes to web apps and APIs, with 15% of the total accounted for by these threats. This blog covers the web apps and API landscape and threats posed to the banking sector.
Bad actors are tenacious and continue to find new and unexpected ways to attack. With reliance on APIs at an all-time high and critical business outcomes relying upon them, it is even more imperative that organizations build and implement a strong API security strategy.
Web App Vulnerabilities
Web applications frequently rely on complicated codebases, which leaves them open to several security flaws. Typical web application vulnerabilities include:
● Cross-Site Scripting (XSS): XSS attacks include inserting malicious scripts into websites that other users view, allowing attackers to steal sensitive data, such as login credentials or personal information.
● SQL injection (SQLI) is an attack that uses improperly sanitised inputs to insert malicious SQL queries, potentially granting attackers unauthorised access to databases containing sensitive client data.
● Cross-Site Request Forgery (CSRF): CSRF attacks persuade users to erroneously conduct harmful actions on trusted websites, resulting in unauthorised transfers or transactions.
● Session Hijacking: Attackers may take over an active user session to access a target account and carry out unauthorised acts.
● Insecure Direct Object References (IDOR): To access unauthorised data, attackers modify object references, such as account numbers or transaction IDs.
API Security Risks
APIs link many systems and apps, making them a top target for hackers looking to exploit security flaws in the financial infrastructure. Since the rapid expansion of APIs is outpacing the capabilities of API management solutions, by 2025, less than 50% of APIs will be manageable. The Open Web Application Security Project (OWASP) compiled a list of the top 10 most critical API security vulnerabilities, some of which are addressed below, in response to the rise in API security risks.
● Inadequate Authentication and Authorisation: Inadequate authentication and authorisation systems may permit unauthorised access to private consumer information and transactions.
● Inadequate Object-Level Authorisation: Inadequate object-level access restrictions can provide hackers access to confidential information.
● Absence of Rate Limiting: Without rate limiting, attackers might overwhelm APIs with many requests, disrupting services or exposing data.
● Poorly secured APIs may unintentionally expose sensitive client data due to faulty error handling or response formats.
● Integration Vulnerabilities: Attackers may target the weakest link in the integration chain if third-party integrations with APIs are used.
Mitigating Web App and API Gaps
Even though they use development best practices and scanning tools, development teams nevertheless significantly impact security because it is inevitable that any software will ship with flaws. APIs are the same. Since APIs are associated with quick development methodologies and frequent release cycles, one could argue that APIs are more prone to gaps since dev teams may forgo security to meet deadlines.
Runtime protection is essential to stop any vulnerability from being exploited in production. However, relying entirely on runtime protection forces you to engage in a fictitious game of whack-a-mole. Dev teams must continuously find and close gaps to strengthen security posture. A runtime API security solution may offer a practical perspective on vulnerabilities with insightful recommendations for effective remediation. The gaps that an actual attacker has attempted to exploit are what these insights are, not just recommended practises and the detection of theoretical weaknesses. These are all crucial details that development teams need to prioritise and swiftly fill gaps, and a solution can and should offer them, along with recommendations on how to do so.
An API security solution should analyse APIs to uncover gaps before an attacker does to let developers proactively patch up potential vulnerabilities while honing their API security best practices.
Conclusion
The banking sector has changed thanks to web apps and APIs, which now give clients access to financial services like never before. But as these technologies are used more frequently, banks are now in danger of new and developing cybersecurity threats. Banks can protect their systems, client data, and reputation from the constant threat of web app and API attacks by being aware of the potential risks and implementing preventative security measures. It is crucial to be watchful in the ever-changing landscape of cyber threats and to invest in solid security practices to ensure the trust and safety of financial services in the digital age.
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