As financial services platforms embrace digitization and adopt new ways of doing business, cyber attacks become frequent. They are an actual threat to banking establishments and insurance organizations regarding the security of information systems, business continuity activity, and data protection.
What can financial institutions do to identify the evolution of threats and define the means to protect themselves? We created a simple guide with the best cybersecurity practices and a robust security defense program for your convenience.
Table of contents
- What is a cyber attack?
- Why are there so many cyber security concerns for the financial sector?
- What can banks or financial institutions do to level up their security?
What is a cyber attack?
Cyber attacks refer to all the risks associated with the use of digital technologies. It can be defined as an operational risk relating to the confidentiality, integrity, or availability of data and information systems. It relates to both malicious acts and unintentional incidents resulting from human errors or accidents.
Why are there so many cyber security concerns for the financial sector?
Large sums of money
The number of cyber incidents is rising sharply in the financial industry because that’s where scammers get potentially significant gains. It is estimated that the global cybercrime cost will take off by 15 percent per year over the next five years, reaching the point of USD 10.5 trillion annually by 2025. (Cybersecurity Ventures).
It is also a highly digitized industry, which increases the feasibility of fraud. The crisis linked to the COVID-19 pandemic made it one of the most exposed sectors. To be more specific, three-quarters (74%) of banks and insurers have experienced a rise in cyber crime firsthand since the pandemic began.
In the cashless world, fraud is not the only goal of the attack. Site blocking or data theft is on the rise. The customer’s assets can be stolen within a digital bank or even a traditional bank that relies on automatization to provide its services. And recovering data such as bank details requires spending a considerable amount of money.
What can banks or financial institutions do to level up their security?
Make sure to develop a security framework
Financial institutions have to define their IT strategy, taking into account the security requirements necessary to protect their systems. It is easy to implement by establishing a general framework for measuring and reducing risks. Make sure it encompasses IT risk and information system security. For that, you will need to outline security policies and technical measures (data encryption, access management, etc.). Use the NIST and FFIEC as your guidelines to establish baseline security capabilities.
Map out possible risks before they come out
Mapping key operational and technological threats are critical in the global financial system. Considering cyber risk more fully in financial stability analysis will help you be prepared beforehand and understand how to mitigate incoming risks. Learn or educate your employees to quantify the possible repercussions for a much broader understanding of the source and effect of cyber incidents.
Consider an antimalware solution
What can be better than a platform that could get you a customized solution for detecting intrusions into the information system? With Crassula, you don’t even need to be an antimalware expert because all of their white label software solutions are easy to be personalized for your particular project.
If you are working in the financial field, massive data theft and significant attacks are very likely an ongoing concern for you. Hacking tools today are cheaper, more accessible, and easier to be deployed, so it is no wonder why we experience inherent fragilities in the bank environment. If you want to avoid security damage and protect your clients and company, follow the tips we have covered today.
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