Banks must work to improve cybersecurity defense to prevent fraud

Improving cybersecurity is a major effort by government agencies and the private sector, with security incidents still occurring at a frightening rate. Financial institutions have focused more on keeping attackers out of their networks, while trying to defend against a large number of attacks.

Most bank-related fraud tends to occur because of the use of false or anonymous identities. However, there is more focus on trying to keep malware from being installed, and to prevent distributed denial of service (DDoS) attacks from being so successful.

"It is no longer acceptable to simply apologize for a security breach and send a letter out to affected customers," said Dorean Kass, VP at Neustar. "Customers expect businesses, especially banks, to identify fraud and maintain cybersecurity, all while ensuring a convenient experience for its clients."

It's one thing to spend more to improve network security, but security experts warn that banks must be sure they are spending money and improving the right solutions.