Modern Banking Demands Real-Time Security

Summary

The financial services landscape is shifting rapidly. Driven by fintech innovators, customer expectations for digital convenience are higher than ever. To meet these demands, banks are accelerating their modernization efforts. But as you adopt new technologies, your attack surface naturally expands, exposing foundational infrastructure to sophisticated threats.

Core banking systems—especially those accessed via traditional green screens—power billions of transactions daily and house your most sensitive customer data. While the systems themselves remain remarkably secure, the legacy methods used to access them are creating critical vulnerabilities. At the same time, regulatory bodies are intensifying scrutiny, pushing financial institutions toward a Zero Trust architecture.

For IT leaders balancing board directives, compliance mandates, and operational risk, waiting to address these security gaps is not an option. Here is a look at the evolving threat landscape, upcoming regulatory priorities, and how you can secure your most critical operations.

New fraud schemes targeting financial institutions

Cybercriminals know that mainframes and backend host systems are the ultimate targets. Modern fraud schemes are specifically designed to exploit the weaknesses of traditional terminal emulator access. Without multi-factor authentication (MFA) or session monitoring, legacy access points offer little defense against these emerging vectors:

• Authorized push payment (APP) fraud: Criminals use social engineering to trick employees or customers into sending money to fraudulent accounts. A user with compromised credentials could inadvertently approve a transfer because the green screen lacks a secondary validation prompt.
• Deepfake identity fraud: AI-powered deepfakes allow fraudsters to impersonate legitimate customers or mimic senior executives to authorize large transactions. Systems relying solely on simple passwords cannot defend against this highly convincing attack vector.
• Insider threats and credential stuffing: Whether it is a disgruntled employee or an external actor using stolen credentials, a single compromised password can give an attacker direct access to core banking functions. Without session monitoring, distinguishing a legitimate user from a malicious one is nearly impossible.

Evolving regulatory obligations for 2026 and 2027

Regulators recognize these vulnerabilities and are moving quickly to mandate stronger controls. Every access request must be continuously verified. Banks that fall short face failed audits, severe fines, and reputational damage. To maintain compliance, IT leaders must prioritize the following areas:

• Strengthened identity and access management (IAM): Frameworks like the Digital Operational Resilience Act (DORA) and directives from the New York State Department of Financial Services (NYDFS) mandate robust IAM. Relying on simple, eight-character passwords for green screen access will no longer satisfy auditors. You must extend MFA and single sign-on (SSO) to all systems, including mainframes.
• Mandatory third-party risk management: As fintech partnerships grow, third-party vendors often require access to core systems. Regulators will hold banks directly responsible for breaches originating from partners. You need centralized access management to enforce consistent security policies and monitor all sessions, regardless of the user's location.
• Comprehensive audit and reporting trails: In the event of a breach, regulators demand a complete record of who accessed what, when, and why. Traditional terminal emulators lack the detailed logging capabilities necessary for forensic investigations. Banks need centralized, immutable audit trails for every user session to prove compliance.

Closing the access gap in core banking systems

The solution to these challenges is not to rip and replace the time-tested systems that run your bank. Instead, you must secure the pathways connecting to them.

Rocket^® Secure Host Access^™ bridges this critical gap. By integrating your green screen applications with modern IAM platforms, you can enforce robust, enterprise-wide security policies without disrupting operations.

Here is how you can build a more resilient bank:

• Extend MFA and SSO to the mainframe: Eliminate the risk of compromised passwords by integrating host access with your existing IAM solution. This integration ensures proper authentication for every user before they can access core banking applications.
• Achieve centralized control and visibility: Manage all user sessions from a single interface. A modern approach empowers you to enforce granular access policies, monitor for suspicious activity in real time, and terminate sessions instantly if you detect a threat.
• Streamline compliance and audits: Automatically generate detailed session logs that provide irrefutable evidence for auditors. This capability simplifies compliance reporting and strengthens your security posture by leaving no activity unrecorded.
• Empower adoption and productivity: A user-friendly approach ensures high adoption rates and a smooth transition for staff, minimizing operational disruption while accelerating your path to compliance.

Secure your future by securing your core

The legacy systems that provide unparalleled reliability are at risk due to outdated access methods. As financial fraud becomes more advanced and regulations more demanding, your security posture must evolve.

By modernizing how your organization connects to core banking systems, you can overcome security threats and regulatory demands with confidence. Protect the heart of your banking operations and ensure you are ready for the compliance challenges ahead.