The impact of COVID-19 pandemic on cybersecurity in electronic banking in Poland

Abstract

Purpose: The purpose of the article is to present both theoretical and practical basis for cybersecurity in electronic banking in Poland during the COVID-19 pandemic. During this period a major reorganisation of IT solutions occurred, which allowed to extend the range of online products and services offered both to bank customers and employees. As our life is more and more dependent on digital technologies, cyber attacks have become more costly and more dangerous. Driven by dynamic technological development regulations have changed, which resulted in cybersecurity becoming a key priority in financial institutions. All the more so because the rapid technological development has been followed by more and more advanced techniques used by criminals searching for easy financial profits. Methodology: The paper uses the method of literature review - mostly electronic sources, descriptive and comparative analyses. Findings: From customers, perspective, the impact of COVID-19 pandemic on cybersecurity in electronic banking in Poland may be recognized as negative. The years 2020-2021 brought a dynamic growth in the number of digital banking customers, especially mobile banking. In those years financial institutions recorded an enormous increase in online payments, which was the result of strong, forced by the pandemic, surge in sales in E-commerce. At the same time, there was a sharp rise in the crime rate targeted at banks, but most of all, at bank customers. While the security of the very financial institutions remained unthreatened, there was an explosion in the number of cybercrimes targeted at E-banking users, with the losses giving dozens of millions PLN in total. That is reflected by the data provided by the National Bank of Poland, numerous complaints to the Financial Ombudsman, the Office of Competition and Consumer Protection, as well as the police investigations. Practical implications: The analysis of relations between theoretical and practical bases of cybersecurity in E-banking in Poland during the COVID-19 pandemic is a key factor for financial institutions. Cybercrime undermines customers' trust in E-channels and therefore negatively influences how banks are perceived, the level of the users' activity in digital channels, and consequently, activity and sales in E-channels. Besides the image and financial risks, banks need to take into consideration the increase in reputation, operation and legal risks. On these grounds, it is possible for state organisations and financial institutions to develop professional education concerning cybersecurity, not only for E-banking customers, but for the whole society.