It should be no surprise to say that cybersecurity for financial institutions is of the utmost importance. You’re probably already aware of the sensitivity of the data in a financial organization’s care and understand that financial data breaches are disastrous. However, what you also need to know is that not all cybersecurity services are fit for the task.
That’s because financial services often have a complex IT infrastructure that’s interconnected within a global network. As a result, an oversight could expose vast amounts of highly sensitive information, disrupt global transactions, or compromise a lot of people’s financial stability.
To help you avoid those risks, this article will examine the unique cybersecurity concerns of the financial sector and discuss what you need to look for to spot a cybersecurity provider who can rise to the challenge.
| “Financial Services organizations know they need best-in-class cybersecurity, but many organizations are overwhelmed with regulatory compliance activities that do not necessarily make them more secure.” – Tab Bradshaw, Chief Operating Officer, Redpoint Cybersecurity |
The Unique Challenges Facing Major Financial Institutions
Compliance Regulations
Financial sectors are heavily regulated. A single breach can mean non-compliance, leading to hefty fines and a tarnished reputation. This is especially challenging as your institution extends across borders. What may have worked in America, might not work for somewhere else.
High-Value Targets
Financial data is a gold mine for cybercriminals. The potential profit they could obtain from a successful attack makes your organization an attractive target. As a result, 90% of financial organizations were targeted for ransomware attacks in 2022 (not all successful).
Sophisticated Cyber Threats
Threat actors who target financial institutions often employ highly complex tactics that can bypass traditional defenses. Considering how valuable the data they want is, it makes sense that they’ll go to greater lengths to try to obtain it. Some of these tactics include advanced persistent mechanisms and spear phishing.
Speed of Transactions & Occurrences
Thanks to technology, transactions that once took days can now be completed in mere seconds. While this speed is a boon for business and customer satisfaction, it also means that threats can proliferate your systems equally as fast. This means that, without rapid response tactics, the damage could be done before you know the threat is there.
Hunt The Hunter™ Before They Get Too Far
Evolving Digital Services
As institutions offer new digital banking solutions, like mobile apps and e-wallets, the surface for potential attacks broadens. Not all standard cybersecurity systems are equipped to handle this increase in mobile apps and IoT devices connected to your network.
Even if you don’t directly offer an app or similar, many of your clients will inevitably access your system using an IoT device. Therefore, you still need to account for this potential increased attack surface, whether or not you cater to it.
Interconnectivity
Your institution isn’t just a standalone entity. It’s part of a vast interconnected web, which means vulnerabilities in one can spell danger for many. As a result, your protection is also the protection of others. It also means that you need to be prepared to fortify your defences against someone else’s chink in their armor.
Public Trust
Loss of public trust after a breach occurred is an issue for any industry. However, it’s make or break in the financial sector. No one wants to leave their hard-earned money with someone they aren’t 100% confident in. Just one slip-up can spell disaster for your financial business’s future.
| Learn More About What Goes Into Sophisticated Data Protection |
What to Look For in a Cybersecurity Provider
Compliance Expertise
Ensure that your provider is versed in global financial regulations and can help your institution remain compliant in a dynamic regulatory landscape. They should be capable of helping you navigate compliance in every country where you provide services.
A good provider can help you navigate through challenges. Cybersecurity providers are not compliance auditors, you shouldn’t expect them to be. However, they can do a lot to get you well-prepared for when an audit does occur. This proactivity will leave you in a better position when the time comes.
Threat Intelligence
Cybersecurity risks are constantly evolving. This fact is nothing new, but in the high-stakes financial industry, it rings even truer. Criminals know how much effort goes into protecting personal data, so they put more of an effort into deploying advanced attacks.
That’s why you need a cybersecurity partner with threat intelligence that’s as advanced (if not more advanced) as they are. You should also opt for a provider that not only focuses on external threats, but also has a strategy to manage and mitigate insider risks. This helps ensure that there are no leaks in your data security strategy.
A Holistic Approach
Your chosen provider should see cybersecurity as more than just firewalls and antivirus. They should look at employee training, physical security, and more. This is because damaging data loss isn’t just caused by hacks. Human error, server meltdowns, and acts of nature can all cause huge losses.
See How Redpoint is Already Securing Financial Institutions
Ask your potential provider about how they mitigate those risks too. It’s important to be vigilant about cybercrime, but this shouldn’t be at the expense of other potential problems.
Real-Time Monitoring & Response
Find a provider that guarantees 24×7 surveillance and swift action in case of a breach. In a lot of cases, off-hours are peak time for hackers. They’re counting on less surveillance during these periods, so 24×7 is a vital aspect of your risk management.
Still, detecting a threat is one thing, actually doing something about it is another. Your 24×7 protection must include response, not just monitoring. One study showed that 88% of hackers report that they can infiltrate a network and find what they want all within 12 hours. There’s no time to wait until the next business day.
Transparency
You should always be in the loop. A worthy provider offers detailed, transparent, and regular updates about your security status. Favor providers who prioritize open communication, sharing regular, clear updates.
This is not just about knowing what’s happening in your network; it’s about building trust. Through constant feedback, they should cement a partnership where you’re always included, never sidelined. It’s also a good way to ensure their solutions are tailored to your unique business processes.
Adaptive Solutions
Choose a provider that employs adaptive cybersecurity technologies. This way, your defenses will evolve alongside emerging threats. This should involve both consistent software updates and up-to-date threat intelligence. Look for a provider who can prove they do both.
Agile solutions that help recognize emerging threats are also a crucial part of this strategy. For instance, NGAV-based machine learning can detect previously unknown potential threats. Meanwhile, most standard antivirus software tools simply scan for threats they recognize from a database.
Sophisticated Penetration Testing
Regular penetration tests can highlight vulnerabilities. This is crucial if you want to stay proactive and one step ahead of potential cyber risks. The problem is that many pen test providers cause system slowdowns, network crashes, and add bad data to your system during their tests.
In an industry where mere milliseconds can influence significant monetary outcomes, these aren’t simply mere inconveniences but costly disruptions. That’s why it’s vital for your organization to find a sophisticated pen tester who prevents such side effects.
Get Military-Grade Protection For Your Financial System
With so much at stake, why would you trust your financial organization or bank cybersecurity with anyone less than the best? Robust, military-grade cyber technology is what you need to lock your financial data down tight.
Redpoint Cybersecurity offers that level of security. Our top-tier professional cybersecurity experts are trusted by the US federal government. If they can trust us, you can too.
This level of trust applies both to our proactive and reactive protocols. That means you can get government-grade managed detection and endpoint response services as well as professional digital forensics and incident response.
Your clients are counting on you to secure their hard-earned cash. Contact us today to bring that protection to the next level.