THE ROLE OF CIVIL LIABILITY IN SHAPING BANK CYBERSECURITY STANDARDS: ANALYZING JUDICIAL INTERPRETATION OF “REASONABLE SECURITY MEASURES”

The accelerating digitalization of banking services has created unprecedented challenges for financial institutions in maintaining robust security measures while ensuring operational efficiency and customer convenience. As cyber attacks become more frequent and devastating, with global financial losses from cyber incidents in the banking sector exceeding $1.2 trillion in 2023 alone (Global Banking Security Index, 2024), the role of civil liability in establishing and enforcing cybersecurity standards has become increasingly crucial. Within this complex landscape, the concept of "reasonable security measures" serves as a central legal standard in determining liability, yet its interpretation has evolved significantly as courts grapple with rapid technological advancement, emerging threats, and changing customer expectations.