What does Ransomware mean? What is its impact on banking?

Ransomware is a type of malicious software designed to block access to a computer system or files until a sum of money (ransom) is paid. In the context of the banking and financial sectors, ransomware can have severe consequences. It can lead to the compromise of sensitive customer data, financial information, and transactions if a financial institution’s systems are infected. This can result in financial losses, reputational damage, regulatory fines, and operational disruptions. The impact of ransomware on the banking sector can be significant due to the crucial nature of financial data and the need to protect customer information and assets.