A Comprehensive Analysis of Cyber-security Risks in Digital Banking and Their Socio-economic Impacts

The swift digitisation of banking services has transformed financial accessibility while simultaneously increasing vulnerability to cyber threats, resulting in significant socio-economic repercussions. This mixed-methods study examines the evolving landscape of cyber-security threats in digital banking, encompassing phishing, ransomware, malware, data breaches, insider threats, and DDoS attacks. It assesses their impact on institutions, customers, and the economy. A quantitative analysis of a decade-long dataset indicates a marked increase in cyber incidents, with reported attacks on financial institutions escalating from 1,500 in 2019 to 3,348 in 2023, accompanied by considerable economic disruptions, including GDP contractions (–1% to –2%), surges in unemployment (+2.8 percentage points), and a decline in customer trust (–45%). Qualitative views from cyber-security experts, policymakers, and financial regulators underscore organisational and regulatory hurdles in addressing these threats. The study introduces the CUBE Security Model, which incorporates Continuous AI-driven detection, Unified threat intelligence, Blockchain-secured transactions, and Encrypted cloud-based protection, in conjunction with advanced technologies such as zero-trust architectures, quantum-resistant encryption, and decentralised identity systems. Comparative case studies highlight regional differences in cyber-security resilience, emphasizing the importance of governance and innovation in maintaining socio-economic stability. This research integrates cyber-security with socio-economic analysis to provide practical frameworks that enhance digital banking resilience, foster public trust, and promote global financial stability in an interconnected environment. The swift digitisation of banking services has transformed financial accessibility while simultaneously revealing significant vulnerabilities to cyber threats. This report analyses the changing cyber-security threats in digital banking and their extensive socio-economic impacts on organisations, customers, and economies.