Banking Sector Cyber Wars and International Hacking Essay

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Updated: Mar 7th, 2024

Introduction

Hacking refers to deliberate actions to interfere with computer systems. The act mainly happens over computer networks. Flaws in the network allow hackers to access the systems. Knowledge on hacking can be both advantageous and disadvantageous to a firm. Advantages associated with the practice include improvement of security in computerized systems. Today, many learning institutions are offering courses in this discipline, especially for students pursuing degrees in Information Technology. The knowledge would be of great use in future in preventing cyber crimes by identifying loopholes that would leave a system vulnerable to attacks (Timberg, Nakashima and Douglas-Gabriel 12). However, the skills can be dangerous and costly to victims. Hackers have in the past used their expertise to commit fraudulent activities, such as access to valuable information. They manipulate this information to gain control of systems. The individuals have also been used in times of warfare to conduct terrorist activities. Most of them engage in the activity for self amusement. In addition, some of them have not even studied related courses, which make it difficult for prosecutors to prove their guilt during a trial.

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The paper seeks to address the issue of cyber warfare and hacking. More emphasis is placed on the banking industry. The paper addresses cyber warfare and hacking at the international level. Some of the areas addressed by the author include hacking of both small and multinational organizations, the link between cyber war and terrorism, as well as buzzwords and background information with regards to unauthorized access to computer systems.

Cyber War and Hacking in Organizations

Traditionally, most hackers target computer systems and networks. However, telecommunication companies offering services to mobile phone users have also become a target for these individuals (Perlroth 9). The introduction of smart phones is seen as a major contributing factor to this emerging trend. The fact that these phones use a computerized system makes them as vulnerable as a computer network in relation to hackers. Most of these practitioners target the network. A large number of telecommunication firms are often not aware of the risk they face from the criminals. As such, they are often ill prepared when the hackers attack. The hackers are often anonymous and carry out their activities stealthily (Timberg et al. 12). In most cases, they use malwares to allow them access to information and networks. Foreman Seeley Fountain Architecture is one of the latest victims of such activities. The mobile network company lost $166,000 worth of calls within a single weekend (Perlroth 9).

Such kind of vulnerability also exposes customers to risk of losing their money. With increased adoption of mobile banking and money transfer, stakeholders in the sector need to be extra vigilant through the constant monitoring of their systems in order to detect suspicious activities. In developing countries where the online banking system has not fully taken route as a result of resource shortages, mobile banking is common. People are able to send and receive money through the mobile network. The same telecommunication companies also provide customers with credit services. Vulnerability of their systems would tarnish their reputations, a situation that would lead to loss of customers (Perlroth 9). For this reason, most of these companies often opt to remain silent even after they have incurred huge losses owing to hacking.

International hacking has become common among teenagers. However, most of these individuals leave tracks behind. As a result, they are apprehended for their actions. In efforts to reduce hacking in the country, a number of police units have been formed. The administration cells deal exclusively with cyber wars. In some cases, these forms of crimes may be a result of terrorism. Other people engage in it just for fun and out of their love for computer programming. The major source of concern to security organs around the world is any form of illegal hacking (Tara 5).

Hacking in Mainstream Media

A look at some recent articles in the media reveals substantial factual information about the issue of cyber crime. For example, an article published in The New York Times in October 2014 addresses the issue of hacking perpetrated against JPMorgan Chase (Silver-Greenberg, Goldstein and Perlroth 4). The attack is deemed as one of the biggest cases of cyber crime to have ever been discovered. In this instance, information about 76 million household accounts and 7 million sets of financial records belonging to small businesses were compromised (Silver-Greenberg et al. 2).

In today’s world, banks have become favorite targets for hackers. The story of JPMorgan is an indication of this development. Financial information, social security numbers, and other forms of sensitive data are believed to have been tapped into by criminal elements. An attack of this magnitude compromises every activity in the organization. The hackers at JPMorgan had also obtained access to applications running in most of the computers. Jamie Dimon, the Chief Executive and chairman of the bank, said investigators had made progress in their efforts to determine the source of the crime (Silver-Greenberg et al. 2).

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The frequency of cyber attacks is rising by the day. In 2011, a journal article stated that a Russian hacking group had breached the security systems at NASDAQ. However, there was no evidence of any information taken away by this gang (Glazer and Yadron 1).

According to The Wall Street Journal, JPMorgan is just one of the many entities that have suffered similar attacks (Glazer and Yadron 1). For example, in September 2014, the security system at Home Depot Inc. was compromised. Other victims include Adobe Systems and Target Corps. In the same journal, it is indicated that Microsoft’s Xbox was penetrated by criminal elements. Unlike in JPMorgan’s case, the hacker accessed information that was enough to build a counterfeit Xbox One gaming console. He used the proceeds from the console’s sale to pay for his university tuition fee.

Apple is one of the bestselling computer brands in the world. A flaw has been reported in one of its systems. Apparently, hackers were able to create a virus that is sent to a host network. Once the malware is active in the target computer, it gives the hacker remote access to the machine through a complex communication system. More than 17,000 Macs have been affected worldwide, with 12000 cases reported in Britain alone (Glazer and Yadron 1).

Hacking and Terrorism

It is a fact that most elements of human existence in the modern world are computerized. As a result, hackers find it easy to carry out their crimes. Today, some terrorists use the help of hackers to attack other countries. The relationship between the two elements has elicited debates on whether or not hacking is terrorism. There are small scale criminals who are interested in stealing some little amount of money. Another group is made up of organized hackers. They target large corporations to access their data. In some cases, they are engaged in economic espionage (Goldstein, Perlroth and Sanger 5). People hold different views about hackers. There are those who rank cyber war as less dangerous compared to a nuclear attack. Organized hackers call themselves ‘anonymous’ at times. The ones involved in terrorism are recruited and trained to work for the terror groups. In some cases, they are forced to offer their services to the terrorists.

Due to the damages that these activities can cause, governments around the world are trying to eliminate illegal hacking. In America, a law has been passed to help in this. Anyone proved guilty of the crime is liable to ten years imprisonment. In other countries like Britain, the sentence may be life imprisonment. As a result, many people are discouraged from engaging in these crimes. However, in some instances, hackers use technology that is more advanced than that used by the law enforcers (Tara 2).

Incidents Prompting Cyber Wars

The main aim of hacking is to gain access to computer and mobile networks. The driving force behind this is often self amusement and criminal behavior. The information gained puts the hacker in control of the system. As such, they acquire administrative power over the network. In most cases, hackers are able to complete their activities undetected (Perlroth 9). In the banking sector, hacking can result to loss of valuable financial data. The hackers can also manipulate the data at their disposal to make unauthorized transactions. Their activities hurt both the companies that they target and their customers.

Most persons who engage in hacking also have interests in computer networks. Most of them spend a considerable amount of time around computers and are fond of trying new things (Timberg et al. 12). Some of these individuals may even lack any form of formal leaning on hacking. Terrorism is also a major motivating factor behind some of the hacking activities. The activity can be used as an act of war by targeting vital information systems and obtaining information on financial systems used in a country.

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Reacting to Cyber War

Some issues about hacking remain sketchy. Critics wonder why government agencies fail to recruit talented hackers to help curb this crime. In the case of JPMorgan, it is unclear how the criminals got so far and deep into the system. It is possible that someone from the inside helped them. The Wall Street Journal theorizes how the criminals may have penetrated the network. It is believed that they used a personal computer of one of the members of staff. The workers were urged to improve defense on their end. Such measures included logging off their work stations and using passwords that are hard to crack (Tara 4). Another unclear issue with regards to JPMorgan’s attack is whether any money was stolen or not. The bank is still contacting its customers to confirm if any funds were tapped into (Tara 4).

Cases of high jacking of mobile networks by hackers have been common over the past years. The perpetrators of the crime are often handed short sentences, whereas their activities have devastating effects on the financial status of their victims. The law enforcers should be well equipped to detect and deter such activities before they occur. In most cases, high profile hacking activities are carried out by internal criminals who are difficult to trace once they have accomplished their mission (Perlroth 9).

It is important to understand that banks are vulnerable to attacks due to the financial and personal information they hold. As a result, they have to invest a lot of resources on security (Silver-Greenberg et al. 4). In spite of these security lapses, it is better for the public to entrust the financial institutions with their vital information rather than hold it in their personal computers.

One may have skills on computer security, but their capabilities and resources cannot compare to those of a bank. It is also important to note that cyber crime is taken seriously by the government. Tampering with the system of another party has dire consequences on the offending party.

Buzzwords and Background Searches in Cyber Crime

Just like in any other profession, there are a number of keywords used in cyber war. A buzzword is similar to a technical jargon. One such word is malware. It is a malicious computer code used to corrupt or override the target system. The attackers of JPMorgan are believed to have used malware to penetrate into the bank’s system. Information can be termed as the background of any form of cyber attack. The situation has extended to smartphones. Phones are getting infected through applications downloaded from the internet. One single mistake of installing an application from unknown developers can compromise the security of the handset (Wood 4). Some hackers use this information to extort money from other people. Once the cell phone is hacked, the criminal can lock it and withhold the information inside. They may demand a ransom to unlock it.

Hacking and Educated Opinion

In the 21st century, the internet has turned to be a basic need. It is used in reading and sending e-mails, connecting on social media, and such other applications. Each day, people upload personal information on the internet. Hackers can retrieve such information and use it against the individuals. The introduction of smartphones has made it possible to store data in a cell phone. However, these devices are easier to hack into compared to computers (Wood 8). As such, some people prefer to store their information in safer locations, such as banks. The financial institutions have complex security options that are not easy to break into. However, organized hacking groups are using advanced technology to gain access to these networks. It is up to these banks to ensure that they use updated innovations to secure their systems.

Not all forms of hacking are considered to be illegal. However, there are certain lines that should not be crossed. Hacking activities should not cause harmful effects to another party. Today, many governments advocate for inclusion of a course on hacking to help people gain awareness on the vulnerabilities that may exist in computer networks. Businesses offering banking service should hire the services of such individuals for them to be in a better position to combat crime (Perlroth 9).

Conclusion

Banks have become soft targets for cyber attacks and international hacking. First, people entrust their important information, such as social security numbers, with these financial entities. Another reason is that the institutions deal with money. Some hackers may fear tampering with the security system of large organizations for fear of repercussions. However, there are those who focus solely on the illegal acquisition of information regardless of the resulting consequences. When sensitive data gets into the wrong hands, it can be used to hijack the economy. As such, banks should do their best to ensure that this does not happen to their customers. The government has played its part by declaring that cyber attacks are federal crimes. The minimum sentence is ten years, while the maximum is life imprisonment. Individuals should also be careful of what they store on the web. In addition, they should keep track of their financial accounts.

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Works Cited

Glazer, Emily, and Danny Yadron. “”. WallStreetJournal. 2014. Web.

Goldstein, Matthew, Nicole Perlroth, and David Sanger. “”. NYTimes. 2014. Web.

Perlroth, Nicole. “”. NYTimes. 2014. Web.

Silver-Greenberg, Jessica, Matthew Goldstein and Nicole Perlroth. “JPMorgan Chase Hacking Affects 76 Million Households”. NYTimes. 2014. Web.

Tara, Siegel. “”. NYTimes. 2014. Web.

Timberg, Craig, Ellen Nakashima, and Danielle Douglas-Gabriel. “”. WashingtonPost. 2014. Web.

Wood, Molly. “”. NYTimes. 2014. Web.

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IvyPanda. (2024) 'Banking Sector Cyber Wars and International Hacking'. 7 March.

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IvyPanda. 2024. "Banking Sector Cyber Wars and International Hacking." March 7, 2024. https://ivypanda.com/essays/banking-sector-cyber-wars-and-international-hacking/.

1. IvyPanda. "Banking Sector Cyber Wars and International Hacking." March 7, 2024. https://ivypanda.com/essays/banking-sector-cyber-wars-and-international-hacking/.


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IvyPanda. "Banking Sector Cyber Wars and International Hacking." March 7, 2024. https://ivypanda.com/essays/banking-sector-cyber-wars-and-international-hacking/.

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