Banking outages and their serious repercussions

It wouldn’t be wrong to state that there are a number of advantages to banking online.


One might be that it’s way more helpful than going to a traditional “original” bank to such an extent as that it can truly simplify the life of a person.

Another can be that online banks offer way better investment funds rates the chance to keep more cash in your pocket increases.
Even so, after being proved authentic so many times, there still remains a question that continues emerging on numerous occasions inside the minds of the vast majority with reference to Whether or not online banking is safe and secure.
Indeed according to a whole lot of population, it is, as they trust it to be sufficiently secure to use on an everyday premise, except what can’t be ignored are the rising measures of security breaches, failures, and outages that have been showing up in a previous couple of years.
The current scene of the Fidelity ‘glitches’, where the clients of third biggest financier in the world found themselves unable to get to their online records and thus needed to persevere through a no. of hardships, this issue emerged as an eye opener for the investors all around the world, helping them to remember the dangers that lie undetected by the digital resources – whether it be stocks or deposits in fact – held exclusively through online records and platforms.

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Customers kept in the dark…
One of the most well-known incidents which are still afresh in the minds of those affected, occurred back in the year 2011, was the infamous data breach of the Bank of America, which ended up making a great deal of potential damage its clients. This occurrence was especially dreadful and not on the grounds that the Bank of America was effectively breached or traded off or even messed with but since this was an oversight in the site itself, which wound up uncovering a considerable amount of private and classified data of its valuable clients.

Another incident of online banking failure was experienced by the clients of HSBC as they were rendered helpless and were not able to access their internet banking for a few hours to end as the bank had endured a cyber-attack. The series of ‘glitches’ and ‘technical problems’ exhibited implied that the clients have without a doubt experienced issues signing or logging in to a few different events also.
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Even so, here the mobile banking customers were excessively influenced to a large extent. However the payments, exchanges or direct debits were not disrupted because of the attack but rather the banking outage influenced the clients’ capacity to process their self – assessment forms.

Reliability never guaranteed…
One would imagine that an institution as security conscious as a bank would have the best possible measures in store to protect against these sorts of attacks, however, in all actuality, you never know when a bank’s online services may go down.

Same is the case of the NatWest and RBS online clients when a Distributed Denial of Service (DDOS) disabled their internal systems to a point where the clients were not able to get to their records via the internet.

In any case, today despite everything we still assume that the banks, companies and the governments are sufficiently capable to take care of and ensure us that our records are well looked after, we can’t force ourselves to imagine the banking systems along with the ATM’s going down and not having access to our well-deserved savings. In any case, so did the clients of Lloyds banking group as for them a server failure implied that for around three – and – a – half hours debit card exchanges were declined and ATM’s all around the nation couldn’t administer the money.
While not as ‘cataclysmic’ as the glitch which made a few clients of RBC’s saving banking brands go a long time without having the capacity to get to their accounts properly, it was yet another sign that the aging IT systems are in a genuine need of an update.
All things considered, the issue like these are consistently happening , in the event that one is settled, another rises on its place, it is an endless circle having no fit solution to it  yet it can be dodged to some degree , if there is a change in the level of endeavours set forth by the banks and in addition its clients, on the grounds that if these meet up to work in an organized manner there may come a period later on when circumstances like these will be eventually handled in a jiffy as opposed to taking days and weeks to fathom giving help to both the bank and its client.





Medha Bhagwat

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