Using VPNs To Strengthen Security On Banking Networks

Using VPNs for banking networks is vital to prevent the interception of sensitive data by cybercriminals who have the ability to take advantage of any weakness in a network. Typically, the information associated with transactions includes personal identification details, passwords, and account numbers. If such data falls into the hands of criminals, customers may face financial fraud and identity theft. Using a reliable VPN can eliminate the chances of such consequences.

A VPN for banking networks is a tool that establishes an encrypted, secure connection called a ‘VPN tunnel’ between customers’ devices and the internet. It makes sure that the information transmitted between the VPN server and the device remains protected from any unauthorized access. Simply put, a VPN’s encryption protocols scramble the sensitive information and make it unreadable for any person who might intercept it.

The ciphering process converts the data into a code, and only the intended receiver can decrypt that code. This way, the protocols create a safe and secure pathway for data transmission. Apart from encryption, VPNs provide privacy features and anonymity by masking the Internet Protocol or IP address. This makes it challenging for advertisers and websites to monitor customers’ online activities.

Let us look at the risks associated with unsecured banking networks: 

• Data Theft: If a hacker can access individuals’ online activity, they can steal login credentials, personal identification details, and other sensitive information. 
• Man In The Middle or MitM Attacks: In this case, hackers intercept communication between a bank’s server and the device. 
• Malware: Malware can steal individuals’ data, lock out accounts, and even monitor their activity. Generally, hackers keep malicious software on unsecured banking networks. Once unsuspecting users connect, malware infection occurs. 
• Data Snatching: Hackers often utilize packet sniffing tools to snatch whatever data people are transmitting over the network. For example, customers might be typing in their credit card details or checking their bank account using public Wi-Fi.

In the case of financial institutions like banks, data requires end-to-end encryption to prevent transactions from interception. In that regard, VPNs for banking networks are extremely useful. Let us explore the different ways in which a VPN can help strengthen the security of banking networks. 

#1 - Prevents Loss of Data and Phishing

Phishing is prevalent among hackers. They utilize the technique to harvest information related to individuals or organizations. The method involves hackers developing a website that appears to be identical to the bank’s actual website. Individuals fall prey to this as they can’t identify the difference and end up typing in their credentials. Using VPNs for banking networks can help customers avoid such issues as the connection between the customer’s device and the bank’s platform remains encrypted. 

#2 - Makes Public Wi-Fi Safe

Hackers often utilize public hotspots to snatch sensitive information from a bank’s customers. However, a VPN makes public Wi-Fi safe through encryption. As the transmission of data takes place from a device to the VPN, it is unreadable because of encryption. Hence, even if a cybercriminal manages to intercept the data, they cannot do anything with it. 

#3 - Keeps Information Safe And Secure Consistently

A lot of banks utilize standard HTTPS encryption for securing the exchanges of information on the website. Although it can provide a great deal of security, it cannot guarantee the privacy of all stakeholders. With the help of a VPN for banking networks, financial institutions can ensure that the information of their customers, employees, partners, etc., remains secure.

Individuals need to consider various aspects to choose the right VPN for their bank’s requirements. Let us look at some of them. 

#1 - No-Logs Policy

Without such a policy, VPN providers could record, share, and even sell a bank’s activity and data. Hence, banks must have a VPN with a no-logs policy. VPN providers can store basic data, like billing information and addresses. However, they have no right to record sensitive data. 

#2 - Stringent Security

The sole purpose of a VPN is to keep networks safe and secure by safeguarding data. Hence, this is one of the most crucial things to check before choosing a VPN. VPN providers that keep security as a top priority.

#3 - Industry-Leading Protocols

The VPN protocols determine in what way the data movement takes place between the VPN server and the device. Hence, banks must choose VPN tools with the best protocols to ensure an encrypted, stable, and secure connection.

#4 - Compatibility with Multiple Devices

Different VPNs may not be compatible with all kinds of devices. Hence, banks must choose a VPN provider that can meet their requirements.

#5 - Customer Support

A VPN that does not allow organizations or individuals to contact support is a red flag. Ideally, banks should opt for a VPN provider that has a support team ready to resolve queries.

#6 - Ease of Use

A VPN must be straightforward, and individuals who do not have any technical background should be able to utilize it.

Let us look at the steps banks can follow to implement VPNs without impacting their operations:

#1- Line Up All Vital Components

First, individuals require a VPN router, a VPN client, and a VP server. The downloadable client links the bank with the servers worldwide so that employees can access the banking network irrespective of their geographical location.

#2 - Prep Devices

A bank should prepare its network system before setting up a VPN for banking networks. It will help avoid issues in the future. In this step, the bank must uninstall any preexisting VPN tool and consider network the network configuration.

#3 - Download and Install VPN Clients

Install clients from the VPN provider. After installation, confirm if the VPN account is working fine.

#4 - Look for a Setup Tutorial

Note that the provider may not have software for all platforms the bank requires. In that case, one needs to check the VPN provider’s website for manual setup.

#5 - Sign In

After installing the VPN client applications, one must enter the login credentials to sign into the VPN app.

#6 - Select VPN Protocols

Lastly, banks must decide how data will get routed between the VPN server and their devices. While some protocols enhance speed, some improve data security and privacy. 

Usually, the VPN for banking networks starts working right away. Nevertheless, if that is not the case, troubleshooting is necessary.

In the next decades, innovative advances in the VPN industry will enhance the efficiency and functionality of VPNs. This, in turn, can result in more widespread usage of such valuable tools.

Let us look at some of the things one can expect from VPN for banking networks in the future. 

• Quantum-safe encryption algorithms
• Increased reliability and speed through optimized server configurations and deployment of advanced networks 
• Mobile-first VPNs for seamless integration with tablets and smartphones
• Decentralized VPNs would eliminate the requirement for a central server
• Threat detection capabilities powered by artificial intelligence 
• Improved geo-shifting and geo-fencing capabilities that would give access to region-locked services 
• Increased security and privacy would make it virtually impossible for any government agency or cybercriminal to decipher or intercept online communications 

With continuous technological developments like 5G networks and the demand for secure connections increasing, the future of virtual private networks in the banking sector is bright. Moreover, as online banking operations and remote work become even more prevalent, the importance of VPN will increase for ensuring data security.

As time goes by, VPNs will keep fulfilling the increasing demands of the banking space with the help of new technological innovations in the industry. With the objective of providing data safety and security, VPNs for banking networks will empower depository institutions to carry out their digital operations with confidence.

That said, banks need to weigh the pros and cons of the different VPN providers available in the market to select the tool that is best suited to their requirements.