While Banks Continue to Pad Their Cybersecurity Budgets, Bank Branch Security is Still Stuck in the 1960s

by William Jones / ⠀News / December 12, 2024

For centuries, banks have been seen as symbols of security and trust, guarding both financial assets and sensitive data. As the world has shifted into the digital age, banks have carried this tradition by investing billions of dollars into their cybersecurity budgets to combat increasingly sophisticated online threats. And while no one can argue that banks should not be securing their digital assets and vaults, the physical security of brick-and-mortar bank branches remains startlingly outdated. In fact, day-to-day security of most U.S. bank branches is still rooted in procedures established more than half a century ago.

Rubber Duckies & Mid-Century Protocols

The current state of bank branch security can be traced back to the Bank Protection Act of 1968. Passed in response to an increase in bank robberies across the nation at the time, the law mandated banks to adopt and adhere to standardized security protocols. One commonly adopted protocol at banks across the country is the “all clear” opening process, whereby two employees arrive at the branch, while one waits outside and the other enters to perform a security walkthrough. If all looks safe, a signal—often as rudimentary as a plant, or even a figurine like a rubber ducky—is placed in a front window to notify the second employee that the building is safe to enter. While this procedure may have worked fine during its time, it hardly fits within what we most would consider to a modernized security framework. And yet, this is still the standard opening process for most bank branches today. “It’s pretty unbelievable that in 2024, we’re still using such outdated methods,” says Kevin Mullins, CEO of SaferMobility, a company dedicated to modernizing branch security. “All it takes is for someone to observe this process for a day or two, and they can exploit it with minimal effort. Criminals today are much more sophisticated, and security systems need to be upgraded to reflect modern threats to employee and customer safety.” In fact, vulnerabilities in the branch opening process have resulted in several instances of what have become known as “morning glory robberies,” where perpetrators target branches during their opening hours, exploiting the isolation of employees and the predictability of daily security procedures.

Employee and Customer Safety at Constant Risk

Despite a decline in overall bank robberies since a major surge in the 1990s, physical branches remain far from secure. According to FBI data, there were over 1,300 bank robberies, burglaries, and larcenies across the U.S. in 2023, and over 1,700 in 2022. These incidents often result in not just financial loss, but trauma, injury, and life-threatening risks for bank employees and customers. Mullins, a former bank CEO, shared his own experience dealing with a robbery at one of his branches: “Some of our employees were held at gunpoint and zip-tied for hours, and they faced years of trauma after that. One never returned to work and entered early retirement the very next day.” Despite the constant threat of danger due to weak physical security measures, banks have shifted to bolstering cybersecurity, spending 13% of their IT budgets on average to protect against digital threats, while the safety of people inside physical branches hangs in the balance.

Modern Solutions to a Decades-Old Problem

Innovative technologies already exist to address these gaps, but adoption has been slow, and is technically not required by law. For example, SaferMobility offers electronic door systems that prevent unauthorized entry until the branch is fully cleared, and mobile apps that allow employees to trigger panic alarms or check in with headquarters in real time. “Our approach is to make security seamless, proactive, and adaptable,” Mullins explains. “With integrated surveillance and automated systems, we can drastically reduce the risks employees face each day.” These advancements go beyond just preventing robberies—they empower employees with tools that instill confidence and peace of mind. Mullins emphasizes, “We’ve seen major security overhauls in places like airports and government buildings. We are long overdue in properly securing our country’s bank branches, which are arguably some of the top targets for violent crime.”

The Need for Regulatory Reform

Mullins believes regulatory reform is key to spurring widespread adoption of modern security solutions. “Banks aren’t ignoring branch security out of malice or intentional negligence—it’s often a question of budget priorities,” he notes. Clear mandates could help shift those priorities, ensuring that physical security receives the attention it deserves.” Experts agree that regulatory agencies must step up to drive change. Updated standards from bodies like the Federal Deposit Insurance Corporation (FDIC) or the Office of the Comptroller of the Currency (OCC) could provide the push banks need to prioritize branch security alongside cybersecurity.

How Banks Move Towards a More Secure Future

Banks have long been trusted to safeguard what matters most, but that trust extends beyond financial assets—it includes the people who rely on these institutions every day. As cybersecurity continues to evolve, it’s time for branch security to catch up by incorporating more advanced technologies like real-time encrypted notifications, advanced surveillance, and mobile integration. “The tools are here, the technology exists, and the need is undeniable,” Mullins says. “What’s missing is the resolve to implement them at the regulatory level.” The stakes couldn’t be higher. As banks bolster their digital defenses, they must also invest in protecting the lives of employees and customers who frequent their branches each day. Because in 2024, a rubber duck in a window sill simply won’t cut it.