The banking and financial sector in Bangladesh is at a critical crossroads. While the rapid digitalization of services has brought immense convenience and efficiency, it has simultaneously exposed the system to a high and persistent level of cyberattack risk. Experts warn that the sector is currently grappling with a cybersecurity crisis, primarily because the speed of technological adoption has severely outpaced the essential security investments required to protect these modern systems.
The result is a financial ecosystem deemed critically vulnerable, facing an onslaught of daily threats that endanger both financial stability and public trust.
The Scale of the Threat: High Volume and High Vulnerability
The threat landscape in Bangladesh is alarming, characterized by sheer volume and systemic weakness:
- Daily Onslaught: Banks in Bangladesh are targeted by an average of over 400 cyberattacks every day. These aren’t random, low-level attempts; a significant portion of the traffic is sophisticated and originates from foreign entities, including countries like China.
- Systemic Risk: Independent studies have shown that a large percentage of the country’s financial sector is dangerously exposed. In one notable 2022 finding, 52% of banks were categorized as being at high risk of succumbing to sophisticated cyber threats.
- Diverse Threats: The attacks are varied and include major threats such as ransomware, which can cripple operations; data breaches, exposing sensitive customer and institutional information; and various forms of financial fraud, often executed through sophisticated phishing or system manipulation.
📉 The Root Cause: Investment Imbalance and Weak Protocols
The primary driver of this high vulnerability isn’t a lack of technological adoption, but a fundamental misallocation of resources and a failure to enforce robust security practices.
1. Disproportionate IT Investment
Banks have invested heavily in modernizing their operations, but the focus has been misplaced:
- Hardware Over Security: Over the past two decades, approximately 95% of the IT investment made by banks has been directed toward basic infrastructure—hardware, software licensing, and networking—with only a minimal, disproportionate amount allocated specifically to cybersecurity defenses themselves.
- Neglected Talent: There is a significant shortage of skilled cybersecurity personnel capable of managing complex modern defenses, analyzing threat intelligence, and rapidly responding to incidents.
2. Outdated Systems and Poor Adherence
Several operational factors exacerbate the risk:
- Legacy Systems: Many financial institutions still rely on outdated legacy systems that are difficult and expensive to patch, making them easy targets for attackers exploiting known vulnerabilities.
- Operational Flaws: Experts frequently cite a poor adherence to security protocols and insufficient internal system segmentation, which, when breached, allows hackers to move laterally across the network with ease.
- Insider Threats: The problem is compounded by internal risk, where poor security procedures and controls allow bank employees to potentially become involved in fraud or manipulation.
3. Interconnected Entry Points
The increasing adoption of Internet of Things (IoT) devices and greater interconnectedness across bank networks provides a wider surface area for hackers to exploit, creating more entry points into the core systems.
📢 The Path Forward: Experts Call for an Urgent Overhaul
To mitigate this systemic risk and secure the digital future of Bangladesh’s banking sector, experts are issuing urgent calls for action focused on strategic investment and coordination:
- Strategic Investment in Defense: Banks must dramatically increase dedicated investment in advanced cybersecurity infrastructure, including cutting-edge threat detection systems, encryption technologies, and regular penetration testing. This investment must be viewed as an operational necessity, not merely an optional expense.
- Systemic Overhaul and Modernization: There is an immediate need for an urgent overhaul of outdated systems and a shift toward modern, secure architectures. This includes implementing rigorous system segmentation and enforcing strict security controls across all units.
- Strengthened Coordination:
- Public-Private Partnerships: Better cooperation between financial institutions, the Bangladesh Bank, and relevant government agencies is vital to share threat intelligence and coordinate a national response.
- Internal Alignment: Financial institutions must ensure better coordination between their IT and business units so that security is integrated into every new digital product and service from the start (Security by Design).
- Promoting Transparency: Banks must overcome the fear of reputational damage and commit to timely and accurate reporting of all cyber incidents. Underreporting hinders a collective, system-wide understanding of threats and slows down the overall resilience effort.
The transformation of cybersecurity in Bangladesh’s banking sector from a vulnerable area to a resilient one requires commitment, significant investment, and a cultural shift to prioritize security at every level of operation.
