How to Elevate Cybersecurity for Financial Services Companies
The technology landscape is evolving quickly, introducing fresh challenges for security in the financial services sector. Trends such as generative artificial intelligence, automation, data management, and integrated finance are reshaping the industry. As the demand for personalized experiences rises, so do the challenges of maintaining data security and privacy, complicating the management of digital identities. Additionally, the growth of data and increased Cloud adoption are broadening the attack surface, necessitating improved vulnerability management and incident response strategies.
On the occasion of the Cybersecurity Awareness Month content series, we offer you security advices to the main problems faced by the financial sector.
Top 5 threats in the financial sector
Over the past twenty years, approximately 20% of reported cyber incidents have impacted the global financial sector, resulting in direct losses of $12 billion for financial services companies, according to the IMF Global Financial Stability Report. Since 2020, these direct losses have amounted to around $2.5 billion, which highlights the increasingly complicated situation this sector faces.
To protect themselves effectively, financial institutions need to be aware of the main threats to their industry. According to Verizon 2024 Data Breach Investigations report, the top cyberthreats the financial sector faces are:
1. System intrusions:
System intrusions have become the main threat to financial institutions, displacing other attack patterns. This shift indicates a transition towards more sophisticated attacks. The rise in intrusions suggests that cybercriminals are resorting to advanced tactics to breach the security of these financial services companies.
2. Social engineering:
The use of this tactic shows that cybercriminals are investing more effort in compromising internal users and exploiting the human factor, which remains a key weakness in most organizations.
3. Miscellaneous errors:
Miscellaneous errors, such as misdelivery of information, insecure system configurations, and data loss, continue to represent a serious security problem for this sector. These incidents are often caused by human oversight or human failure, rather than targeted attacks.
4. Use of stolen credentials and ransomware:
The use of stolen credentials and ransomware attacks are closely related to the pattern of system intrusion. Credential theft allows cybercriminals to move laterally and escalate privileges. Once inside systems, criminals often deploy ransomware causing major operational disruptions and significant financial losses.
5. Supply chain vulnerabilities:
The report mentions that 8% of the cases were linked to the MOVEit incident, demonstrating how far-reaching these breaches can be.
With sensitive data and large sums of money at stake, institutions must implement robust security measures.
Here are some essential cybersecurity tips to help safeguard your organization and its clients:
- Implement strong authentication: Use multi-factor authentication (MFA) to secure access to sensitive systems and data.
- Regular security training: Conduct ongoing training for employees to recognize phishing attempts and understand best security practices.
- Data encryption: Encrypt sensitive data, both at rest and in transit, to protect against unauthorized access.
- Network segmentation: Isolate critical systems from other network parts to limit potential attack surfaces.
- Regular software updates: Keep all systems and applications up to date to protect against known vulnerabilities.
- Incident response plan: Develop and regularly test an incident response plan to quickly address security breaches.
- Access control: Implement the principle of least privilege, granting employees access only to the information necessary for their roles.
- Monitoring and logging: Use security information and event management (SIEM) tools to monitor for suspicious activity and maintain logs for analysis.
- Third-party risk management: Assess and monitor the security practices of third-party vendors and partners who have access to your systems.
- Regular security audits: Conduct frequent audits and penetration testing to identify vulnerabilities and ensure compliance with regulations.
- Customer education: Provide resources to help customers recognize and report suspicious activity.
- Incident simulation exercises: Regularly simulate attacks to test your team’s readiness and response strategies.
Given the growing sophistication of cyber threats, financial services companies must adopt a comprehensive approach to security. An ideal solution is to implement a unified platform for security, which integrates various different tools into a single environment to simplify management and gain a complete overview of the IT ecosystem.
Automation is key to agile incident detection and response. Streamlining security tasks minimizes the risk of data breaches and theft of sensitive information. In addition, advanced AI can be deployed to identify sophisticated threats and malware at the endpoint, proactively protecting financial institutions’ critical assets against new tactics developed by cybercriminals.
Moreover, such solutions also strengthen credential security through MFA, which is a critical line of defense today, preventing unauthorized access to sensitive systems and data.
If you would like to learn more about how financial service companies can protect themselves against potential attacks, check out the following links:
