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Questions and Answers
What is the primary difference between authentication and authorization?
Authentication verifies the identity of users, while authorization controls access to resources based on user identity and permissions.
What is the purpose of encryption in electronic banking?
To protect data in transit by converting plaintext to ciphertext.
What is the main function of SSL/TLS in secure online transactions?
To encrypt data in transit between clients and servers.
What is the purpose of firewalls in network security?
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What is the primary goal of Intrusion Detection Systems (IDS) and Intrusion Prevention Systems (IPS)?
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What are the key features of the Secure Electronic Transaction (SET) protocol?
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What is the first step in the risk management process in electronic banking?
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What is the purpose of qualitative risk assessment in electronic banking?
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What type of risk mitigation strategy involves implementing security measures to prevent attacks?
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What is the purpose of the NIST Cybersecurity Framework in electronic banking?
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What is a major challenge in electronic banking risk management?
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What is the purpose of corrective controls in risk mitigation strategies?
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Study Notes
Security Measures in Electronic Banking
- Authentication verifies user identities to ensure they are who they claim to be
- Authorization controls access to resources based on user identity and permissions
- Authentication methods include:
- Username and password
- One-time passwords (OTPs)
- Smart cards
- Biometric authentication (e.g., fingerprint, facial recognition)
Encryption and Cryptography
- Encryption protects data in transit by converting plaintext to ciphertext
- Cryptography involves encrypting and decrypting data using algorithms and keys
- Types of encryption include:
- Symmetric encryption (e.g., AES)
- Asymmetric encryption (e.g., RSA)
- Hash functions (e.g., SHA-256)
Secure Socket Layer/Transport Layer Security (SSL/TLS)
- SSL/TLS encrypts data in transit between clients and servers
- HTTPS uses SSL/TLS with HTTP to secure web traffic
- SSL/TLS versions include:
- SSL 2.0 and 3.0 (deprecated)
- TLS 1.0, 1.1, 1.2, and 1.3
Firewalls and Network Security
- Firewalls control incoming and outgoing network traffic based on rules
- Network segmentation divides networks into smaller, isolated zones
- Intrusion Detection Systems (IDS) and Intrusion Prevention Systems (IPS) monitor network traffic for anomalies and malicious activity
Secure Electronic Transaction (SET) Protocol
- SET is a protocol for secure online transactions
- SET features include:
- Authentication and authorization
- Encryption and digital signatures
- Payment processing and verification
Risk Management in Electronic Banking
Risk Management Process
- Identify risks: Determine potential threats to electronic banking systems
- Assess risks: Evaluate the likelihood and impact of identified risks
- Prioritize risks: Focus on high-impact, high-likelihood risks
- Mitigate risks: Implement controls and countermeasures to reduce risk
- Monitor and review: Continuously monitor and review risk management process
Risk Assessment Techniques
- Qualitative risk assessment: Subjective evaluation of risk based on expert judgment
- Quantitative risk assessment: Objective evaluation of risk using numerical data
- Hybrid approach: Combines qualitative and quantitative techniques
Risk Mitigation Strategies
- Deterrents: Implement security measures to prevent attacks (e.g., firewalls, access controls)
- Detectives: Implement monitoring and detection mechanisms to identify attacks (e.g., intrusion detection systems)
- Correctives: Implement incident response plans to respond to attacks (e.g., disaster recovery plans)
Risk Management Frameworks
- NIST Cybersecurity Framework: Identify, Protect, Detect, Respond, Recover
- ISO 27001: Plan, Do, Check, Act (PDCA) cycle for information security management
Challenges in Electronic Banking Risk Management
- Regulatory compliance: Adhering to multiple regulations and standards
- Technological advancements: Keeping pace with emerging technologies and threats
- Human factors: Addressing user errors and social engineering attacks
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Description
Test your knowledge on security measures in electronic banking, including authentication, authorization, encryption, cryptography, SSL/TLS, firewalls, and network security.
