A FRAMEWORK FOR ENHANCING CYBERSECURITY IN INTERNET BANKING SYSTEMS

Abstract

The rapid advancement of digital technologies has transformed banking services by enabling automated transactions and reshaping customer interactions through Internet banking. While this shift reduces operational costs and enhances customer satisfaction, it also introduces significant cybersecurity vulnerabilities—particularly in developing countries such as Pakistan, where Internet banking adoption is still emerging. Fraudsters increasingly exploit advanced techniques, exposing banks to internal, external, and regulatory threats. This study adopts a quantitative approach, analyzing survey responses from 350 account holders across Pakistan. Using descriptive statistics, reliability testing, and Cronbach’s Alpha, the research validates a four-layer Cyber Defense Framework for safeguarding digital financial data. The findings highlight critical gaps in user awareness, procedural safeguards, and trust in online transactions, emphasizing the urgent need for comprehensive cybersecurity measures. Practically, the framework offers actionable guidance for financial institutions and regulators to develop resilient system architectures, adaptive defense strategies, and stronger legal mechanisms. By integrating technological innovation with strategic security measures, this study provides a context-specific blueprint for strengthening Pakistan’s banking sector against evolving digital threats.