Financial institutions are a vulnerable sector, facing both cyber and physical threats. Cyber-security has taken the spotlight in recent years, but physical threats are still an issue that needs to be addressed.

It’s important that the financial industry understands the physical threats they face as well as how they can reduce the risk of people and property coming to harm. Here’s what you need to know about the top physical threats facing the people, property, and information of the financial industry.

Types of Physical Threats

Banks, insurance companies, investment firms, and corporate offices face a variety of physical threats. These include:

• Burglary and robbery: threats such as theft of cash from ATMs, tellers, and other locations that handle cash.
• Civil unrest: social unrest can cause financial institutions to become targets of looting and vandalism.
• Bodily attacks: customers and employees can become targets of attacks.
• Data center breaches: threat to sensitive customer data that can result in financial and reputational damage in addition to an impact on customers.
• Internal fraud: insiders and employees can access and misuse funds and data for personal gain.

According to ASIS Online, there were 2,440 incidents reported to the FBI of robberies, burglaries, and larcenies that targeted financial institutions in 2019.

In 2022, the breakdown of robberies looked like this:

• 1,415 at commercial banks
• 14 at savings and loans associations
• 175 at credit unions
• 3 at mutual savings banks
• 1 at an armored carrier company

Commonly targeted areas of financial institutions include counters, office areas, ATMs, vaults/safes, night depositories, safe deposit areas, and cash kiosks. ASIS Online also shares the modus operandi of criminals who target financial institutions:

• Demand notes
• Threatening weapons
• Oral demands
• Firearms
• Handguns
• Takeovers
• Till theft
• Explosive devices used or threatened

Protecting Financial Institutions

Because financial institutions are common targets of physical attacks, it’s important to implement protection. Making sure the perimeter and entry points are fortified with a security system is a good first step. The perimeter of financial institutions should be well-lit and kept free of hiding places such as bushes. Customers and employees should feel comfortable coming and going.

Access control is another form of protection that can reduce the risk of threats at financial institutions. Mobile access control offers enhanced security that is needed to protect people from identity theft and unauthorized access to secure parts of buildings.

This type of access control eliminates the need for passwords and physical keys. Other forms of protection to consider include:

• Surveillance and remote-monitoring
• Safes and vaults
• Alarm systems
• Emergency preparedness plans
• Physical barriers such as fences and walls
• Security guards

Securing financial institutions protects important assets, which include property, sensitive data, and people. Because various areas of financial institutions are at risk of physical threat, it’s important to apply all necessary security measures.

By implementing an integrated approach to security, such as security guards and other forms of manpower along with evolving technology, financial institutions can reduce their risk of threats. Keeping up with the latest threats will allow these institutions to update their security measures as needed.

Understanding the physical threats that financial institutions face is the first step to implementing the best security measures.

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