As banking becomes increasingly digital, cybersecurity has evolved into a fundamental pillar – essential for protecting financial transactions, ensuring data privacy, and maintaining customer trust. Recent advancements in this field have set the stage for a secure, efficient, and inclusive financial ecosystem.
Global Trends in Cybersecurity and where Pakistan stands
The gravity of the cyber security challenge that we face today is underscored by a stark statistic: according to a Kaspersky report in 2023, the financial sector was the target of 14.9% of all high-severity cyber incidents globally. Pakistan has experienced an alarming 300% increase in spyware attacks during the first quarter of 2024 compared to the same period in 2023. This is, although, likely due to the rapid increase in digitalization in the country. Yet, this upswing indicates a risk to cybersecurity – mirroring that seen globally – and demands strict vigilance and proactive planning & actions.
Encouragingly, there are some notable positive movements already: The early months of 2024 saw a notable decline of over 50% in banking malware attacks in Pakistan, compared to 2023.
Pakistan’s Leap Forward in Cybersecurity
Pakistan’s rise to Tier-1 (Role-Modelling) status in the Global Cybersecurity Index (GCI) 2024 by the International Telecommunication Union (ITU) underscores its strategic focus on cybersecurity. Its leap from being at the 79th place to featuring in the top 40 countries globally is testament to the nation’s commitment to cybersecurity in critical sectors such as finance, IT and telecommunications.
Key initiatives, including the Cyber Security Policy, CERT Rules, and Critical Telecom Data and Infrastructure Security Regulations (CTDISR), have been pivotal in building a robust cybersecurity infrastructure. Pakistan has also established institutions such as the National Telecom Security Operation Centre (SOC) and National Telecom CERT to facilitate information sharing, incident handling, and rapid response coordination. These centers play a crucial role in real-time threat monitoring, analysis, and mitigation.
Proactive Measures to boost Cyber Security
Pakistan’s strengthened cybersecurity measures have also played a significant role in catalyzing its digital banking sector growth. However, the increased reliance on digital platforms demands a robust cybersecurity framework. In response, the SBP has mobilized key departments including BPRD, PSPOD, and CPD to issue proactive guidelines and circulars aimed at shielding the industry from emerging threats.
The State Bank of Pakistan’s 2023 cloud outsourcing regulations have provided a significant boost to digital banks and financial institutions by enabling them to adopt cloud solutions with greater confidence and compliance. These regulations set forth clear guidelines on data security, security controls, and risk management, allowing institutions to harness cloud technology’s flexibility, scalability, and cost-efficiency while safeguarding customer data and meeting stringent cybersecurity standards. This regulatory clarity is particularly impactful for digital banks, which benefit from the operational efficiency and scalability that cloud services offer, enabling them to better serve an increasingly tech-savvy customer base.
Our Approach: Innovation and Security in Synergy
At Mashreq, we believe that innovation and cybersecurity are intrinsically linked. Our ethos centers on building secure ecosystems that place customers at the heart of every interaction. Through digital-first solutions, we deliver seamless banking experiences while integrating AI and cloud technologies to fortify cybersecurity. AI and machine learning help us detect, predict, and mitigate cyber threats before they escalate, analyzing vast amounts of data to identify anomalies and potential security breaches in real-time.
Our proactive approach to cybersecurity ensures that we stay ahead of evolving threats, aligning with the success of our digital initiatives that offer secure, personalized experiences. We continuously invest in cutting-edge technologies and employee training to maintain a robust security posture that adapts to the ever-changing threat environment.
Addressing Challenges and Charting the Future
While significant progress has been made, cybersecurity is a continuous journey. Financial institutions must remain agile and adaptive, ensuring security measures evolve in tandem with evaluation and adoption of new technologies. Collaboration between government agencies, financial institutions, and technology partners will be essential to maintaining resilience against sophisticated cyber threats. It also calls for comprehensive employee training and awareness programs.
Securing the Future
Cybersecurity stands as a critical enabler of banking transformation, ensuring the safety and trust needed to foster growth. Pakistan’s advancements exemplify how a nation can position itself as a global leader by building robust cyber defenses. Yet, the frequency of high-severity incidents highlights the evolving nature of threats, demanding ongoing investment and vigilance from all stakeholders in the financial ecosystem.
By integrating advanced security controls and technologies— such as multi-factor authentication, AI-driven fraud detection, and real-time transaction monitoring— Mashreq is using state-of-art technologies to provide a seamless and secure customer experience. These measures not only safeguard user accounts but also enable faster, more reliable transactions by proactively identifying and mitigating potential threats. The adoption of end-to-end encryption, zero-trust architectures, and User behavior and risk profile-based step up authentications further enhances security, ensuring that customers feel confident and protected in their banking interactions.
Together, with our customers and partners, we are building a future where consumers and banking thrive – a secure, accessible, and transformative future. This vision requires continuous collaboration, investment in technology and human capital, and a shared commitment to cybersecurity excellence. As cyber threats evolve, banks must remain committed to strengthening their cybersecurity frameworks, providing a safe and efficient banking environment that aligns with customers’ needs for convenience and trust in a digital-first world.
By Umair Aziz, Head of Information Security, Mashreq Pakistan
