Cyber Security challenges for Switching companies

Digitalization trends in the financial and banking sectors continue to show growth. In 2024, several aspects such as the number of users and total transactions showed growth compared to 2023. One of the backbones of this digitization growth is the switching companies.

Artajasa, as one of the largest switching companies in Indonesia, plays a vital role in connecting various financial institutions to ensure transactions run smoothly. Switching services enable interconnectivity and interoperability among various financial institutions, facilitating digital transactions quickly, securely and reliably.

However, behind the efficiency offered, switching companies also face great challenges in maintaining the security of their users ' data and transactions. As one of the providers of digital payment systems, companies such as Artajasa are also targeted by various forms of cyber crime.

Cyber Crime is becoming more sophisticated

As the volume of digital transactions increases, cybercrime threats to switching companies are increasingly complex and sophisticated. Hackers are constantly developing new attack methods to penetrate security systems, steal sensitive data from companies and users, or even disrupt the operations of financial services. Switching companies such as Artajasa, which acts as a liaison between financial institutions, are one of the main targets due to the high amount of data and transactions processed every day. If not properly anticipated, these attacks can have major repercussions, ranging from leaks of user information to widespread disruption of payment systems.

The following are some of the most common types of attacks and their mitigation efforts. 

• Malware & Ransomware

One of the biggest threats to switching companies is malware and ransomware. This type of attack is infiltrated by hackers into the system through phishing emails, file attachments, or exploiting security gaps in software.

Malware is malicious software designed to steal data, disrupt systems, or provide unauthorized access to hackers. Meanwhile, ransomware is a type of malware that encrypts the victim's data and asks for a ransom so that the data can be accessed again. Ransomware attacks can have a major impact on a company's operations, ranging from unprocessed transactions, leakage of sensitive customer data, to financial losses due to ransom payments or system recovery fees.

To combat malware and ransomware threats, switching companies implement endpoint security that can detect various suspicious activities on the company's systems. Endpoint security is crucial because it deals with sensitive data such as customer account numbers, transaction data, and other customer information. In addition, the encrypted data backup process is also implemented periodically so that data can be restored in the event of a cyber attack.

• DDoS (Distributed Denial of Service)

Another attack that often targets switching companies is DDoS (Distributed Denial of Service). DDoS attacks target websites and servers by disrupting network services that aim to consume application resources. Hackers will flood the server with fake traffic until it disrupts the functioning of the system or even comes to a complete standstill. In the context of a switching company, these attacks can result in the cessation of financial transactions involving the switching company and cause inconvenience to users. 

DDoS attacks have a wide range and target all types of industries as well as companies around the world. DDoS attacks are on the rise in 2024. In Q3 2024, DDoS attacks increased by 55% compared to Q3 2023. These attacks often occur on a large scale and can last for hours to days. 

To ward off DDoS and maintain user comfort, switching companies carry out several mitigation systems. First, a cloud-based mitigation system capable of filtering out malicious traffic before it reaches the main server. Second, implement load balancing to distribute the workload across multiple servers. Third, conduct periodic attack simulations to test the readiness of the system in the face of this threat.

Regulatory compliance

As part of the financial industry in Indonesia, Artajasa must be subject to regulations from Bank Indonesia (BI) and the Financial Services Authority (OJK). BI and OJK require each switching company to have a strong and transparent transaction security system. Maintaining security in digital transactions is part of the regulations that switching companies must meet in order to maintain the interests of users. The main standards implemented by BI and OJK to maintain digital transaction security include Payment Card Industry Data Security Standard (PCI DSS) and ISO:27001. 

Through PCI DSS, switching service providers such as Artajasa must ensure that user payment card data transferred through its network is protected from theft and misuse. This standard requires data encryption, strict access restrictions, and periodic security audits to ensure the system is always in optimal condition. Meanwhile, ISO: 27001 provides a framework for companies in the banking and financial sectors to manage and improve the protection of their data from leaks and cybercrime threats. In addition, ISO: 27001 is also a standard that ensures a company complies with applicable regulations.

Compliance with this regulation is not just a formality, but a concrete step to protect user data and transactions from increasingly complex cyber crime threats. Therefore, Artajasa and Bersama ID actively make various efforts to identify and close security gaps before they can be exploited by irresponsible parties.

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As a switching company, Artajasa and Bersama ID are not only responsible for ensuring smooth digital transactions, but also in protecting users from various increasingly complex cyber crime threats. By implementing state-of-the-art security technology and ensuring compliance with regulations, Artajasa and Bersama ID continue to be committed to delivering a safe, comfortable and reliable digital transaction experience.

As a user of a digital payment service, you don't have to worry. Artajasa and Bersama ID are always at the forefront of cyber crime threats, ensuring that every transaction you make remains safe and secure.