Bank Management System with AES Encryption and Decryption for Secure and Scalable Financial Operations

Abstract

This research introduces a highly secure and scalable Bank Management System (BMS) that integrates Advanced Encryption Standard (AES-256) encryption to safeguard sensitive user and financial data. With the rise of digital banking and associated cyber threats, traditional banking systems often fall short in providing robust data protection. The proposed BMS addresses this by incorporating encryption techniques to protect against data breaches, unauthorized access, and financial fraud. Developed using robust programming frameworks, the system encrypts user credentials, account information, and transaction data using AES-256 before storing it in the database. Decryption occurs only when required, ensuring confidentiality even if the database is compromised. Secure user authentication, including multi-factor authentication (MFA), adds an additional layer of security against common attack vectors such as phishing, brute-force attacks, and credential stuffing. The paper further presents a comprehensive analysis of existing banking systems and their vulnerabilities—such as weak hashing, plaintext storage, and insecure key management. By overcoming these drawbacks, the proposed system adheres to international security compliance standards including PCI DSS, GDPR, and ISO 27001. With an intuitive user interface, encrypted data communication using HTTPS, and secure key handling practices, the system ensures user trust and data integrity. The research outlines the system’s architecture, encryption workflow, implementation methodology, and evaluation strategy, showcasing its effectiveness in preventing cyber threats in the banking sector.

Introduction

With the rise of digital banking, financial institutions face increasing cybersecurity risks due to outdated security practices like weak password hashing and insecure data storage. To address these vulnerabilities, this research proposes a secure Bank Management System (BMS) fortified with AES-256 encryption to protect sensitive data such as login credentials, account details, and transactions.

The system integrates multi-factor authentication (MFA), HTTPS communication, encrypted transaction processing, and complies with global security standards (PCI DSS, GDPR, ISO 27001). Unlike legacy systems that store data in plaintext or use weak hashing algorithms, the proposed BMS ensures robust data protection through secure key management, encrypted storage, and secure data transmission.

The research highlights the shortcomings of existing banking systems, including lack of MFA, poor encryption practices, and limited scalability. The new system is designed with a multi-tier architecture using technologies like Java, Spring Boot, MySQL, and AES-256 encryption, providing secure user authentication, encrypted transactions, and scalable performance.

Development includes secure key management, session monitoring, role-based access control, and compliance with cybersecurity regulations. The system also focuses on usability with an intuitive interface, aiming to increase user trust while allowing future enhancements such as biometric login and AI-based fraud detection.

Conclusion

The proposed Bank Management System with AES Encryption and Decryption represents a significant step forward in enhancing the security, efficiency, and reliability of digital banking operations. In an era where cyber threats are growing in complexity and frequency, this system addresses critical vulnerabilities in existing platforms through the integration of AES-256 encryption, Multi-Factor Authentication, and secure communication protocols. By encrypting sensitive user data—such as login credentials, account numbers, and transaction logs—the system ensures that even in the event of a database breach, the information remains inaccessible to unauthorized parties. The use of AES-256, known for its resistance to brute-force attacks and compliance with global standards (PCI DSS, GDPR, ISO 27001), strengthens data protection at every layer of the architecture. Key features such as secure user authentication, role-based access control, and real-time encrypted transactions contribute to a highly trustworthy user experience. Furthermore, the system has demonstrated strong performance with minimal overhead, high user satisfaction, and resilience against common attack vectors like SQL injection, brute-force login attempts, and data interception. This research proves the feasibility of implementing strong cryptographic solutions in web-based banking applications without sacrificing usability or system responsiveness. By employing industry best practices in encryption, authentication, and compliance, the project establishes a solid foundation for secure digital banking solutions tailored to the modern financial landscape.

References

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Copyright

Copyright © 2025 Divyansh Vishwakarma, Rajnish Kumar, Avinash Kumar, Monu Kumar Mandal, Dr. ChandraSekhar M. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.