THE ESSENCE AND SIGNIFICANCE OF INFORMATION SECURITY IN BANKING ACTIVITIES

Abstract

The article is devoted to an in-depth study of the essence, role, and practical significance of information security in banking activities under the conditions of intensive digital transformation of the financial sector and the rapid growth of cyber threats. The relevance of the research is substantiated by the expansion of digital and remote banking services, the increasing dependence of banks on information technologies, the escalation of cybercrime, and the additional risks caused by the hybrid war against Ukraine, which has significantly intensified threats to critical financial infrastructure.

The paper analyzes scientific approaches to defining information security and systematizes its interpretation as a complex economic, organizational, and technological category aimed at protecting information resources, information systems, and data flows of banking institutions. Special attention is paid to the regulatory and legal framework governing information security in Ukraine, including its alignment with international standards and best practices in the field of cybersecurity and risk management.

The key characteristics of information security—confidentiality, integrity, and availability—are identified and their decisive role in ensuring the continuity of banking operations, financial stability, and reliability of payment systems is emphasized. The study outlines the main threats to information security in the banking sector, such as phishing attacks, fraudulent financial transactions, distributed denial-of-service (DDoS) attacks, unauthorized access to information systems, malware, and social engineering methods targeting bank employees and customers.

The article generalizes modern approaches to building a comprehensive information security system in banking institutions, which combines legal, organizational, technical, personnel, and managerial measures. It is substantiated that information security should be integrated into the strategic management system of banks and considered not only as a technical function, but also as a key component of corporate governance and risk management. Ensuring a high level of information security is defined as a prerequisite for strengthening customer trust, maintaining competitiveness, and achieving sustainable development of banking institutions in the digital economy.