Banks step up security as digital payments grow

As digital transactions continue to rise sharply across the country, so have concerns among customers about security breaches and fraudulent activities. With more people shifting to mobile apps and online platforms for everyday banking, the risks—from phishing calls to identity theft—have become more visible than ever. In response, banks are significantly ramping up their security infrastructure to make digital banking safer and more reliable.

Ali Reza Iftekhar, Managing Director and CEO of Eastern Bank Ltd (EBL), said the bank has strengthened its security framework with multiple layers of protection. "We have introduced multi-factor authentication, biometric verification, advanced fraud detection engines, and dark-web monitoring. These systems are designed to prevent unauthorized access and flag suspicious activity in real time," he said.

However, he noted that technology alone cannot eliminate the risks. "Most digital fraud incidents stem from human vulnerabilities—sharing OTPs, clicking suspicious links, or trusting unknown callers. This is why customer awareness remains a cornerstone of our security strategy. Protecting passwords, being mindful of phishing attempts, and keeping devices updated are essential habits for safe digital banking," he added.

Iftekhar also emphasised the need for regulatory backing. "To scale digital adoption further, regulatory support is crucial. Stronger interoperability between banks, mobile financial service providers, and payment systems will make cross-platform transactions seamless. When customers can move money effortlessly, usage increases naturally."

Echoing similar concerns, Mohammad Mamdudur Rashid, Managing Director and CEO of United Commercial Bank (UCB), said cybercriminals are becoming increasingly sophisticated. "The threats now include phishing, identity theft, and SIM swaps. To counter these, we are investing heavily in biometric authentication, AI-based fraud analytics, device binding, real-time alerts, and financial awareness campaigns. We also appreciate the strong leadership of Bangladesh Bank in digital security, which is critical for safeguarding the ecosystem."

He added that regulatory initiatives have already reshaped the industry. "Systems like BEFTN, NPSB, RTGS, BIN interoperability, digital onboarding, and e-KYC have transformed the landscape. Going forward, universal interoperability, secure cloud enablement, API-driven open banking, digital lending frameworks, and streamlined cross-border payments will accelerate further growth."

"As Bangladesh enters this new chapter of digital transformation, collaboration is key—between banks, regulators, fintechs, and customers. At UCB, our promise is to innovate responsibly, protect our customers at every step, and build an ecosystem where progress benefits everyone. The future of banking is already here, and together, we can make it smarter, safer, more inclusive, and proudly Bangladeshi."

Sharing his perspective on the challenges, M Nazeem A Choudhury, Deputy Managing Director of Prime Bank, said the large-scale adoption of mobile banking brings its own set of security risks. "Mobile malware, banking Trojans, screen overlays, and credential-stealing attacks remain persistent threats. Yet, the most common vulnerabilities arise from user behaviour—falling for phishing links, responding to fraudulent SMS messages, using outdated devices, or connecting to insecure networks. As mobile banking grows, so does the target pool for social engineering attacks. The weakest link often becomes the user's device, and tackling this requires continuous awareness-building alongside stronger technological safeguards."

ANM Mahfuz, Additional Managing Director of Bank Asia, shared a similar view. "With rapid digital adoption comes increased exposure to cyber threats—phishing attempts, fake apps, identity spoofing, and social engineering attacks. Many users still lack awareness about safe digital practices, which heightens the risk of fraud."

To address these risks, Bank Asia has developed a strong cybersecurity framework. "We use biometric authentication, multi-factor verification, device binding, end-to-end encryption, Web Application Firewall (WAF), and AI-driven next-generation network firewalls. Alongside these defenses, we regularly conduct customer awareness campaigns to ensure that security consciousness grows in tandem with technological innovation," he said.

With banks investing heavily in security measures and awareness-building, the sector aims to create an environment where digital banking is both convenient and safe. As the industry continues to evolve, collaboration between institutions, regulators, and customers will remain central to building trust and strengthening Bangladesh's digital financial ecosystem.