The evolving technological landscape has been transformative across most industries, but it’s arguably in the world of finance where the largest strides have been taken. Digital calculators and qualifier tools have made it quick and easy for customers to apply for mortgages and substantial loans in a matter of minutes. Elsewhere, the continued shift towards online shopping in favor of brick and mortar stores means more money is changing hands over the internet than ever before.
The net result of this is a heightened focus being placed on online cyber security by banks and other types of financial lenders. To no great shock, businesses in this sector are most susceptible to large monetary attacks. In 2023 alone, losses per instance of cybercrime totalled a staggering $5.9 million for financial institutions.
With it more pivotal than ever to ensure these organizations are doing what they can to stay safe, an increasing number are taking note of what can be done to alleviate the threat of online criminal activity. In this short guide, we’ll discuss some of the best policies to implement. From educating those who you work most closely with, to rethinking how you react to crime, here are four of the best approaches to take.
Targeting vulnerabilities in the supply chain
Cyber criminals often choose to avoid targeting financial institutions directly, owing to the increasing amount of effort these enterprises are taking to protect themselves. As a result, they’ll look for weaknesses within a supply chain to exploit – usually in the form of a vendor or their software provider.
This is something which needs to be factored into any partnership with a third-party vendor or store. Financial businesses should evaluate the security structure of any of these websites, asking for clear guidance on exactly what measures are being taken to keep financial information safe. Adopting a “Zero Trust” network architecture, where every attempt to access your network is treated as a breach until proven otherwise, is another viable step.
Utilizing strong cyber security software
Criminals most commonly target their victims’ confidential or private information. This type of attack accounts for 64% of all cyber crimes carried out against financial institutions. The solution here is to guarantee that all software and online firewalls being utilized are as up-to-date and comprehensive as possible.
This extends beyond just the installation and use of a trusted cyber security software. Measures which financial lenders can take to keep data and other sensitive information safe include:
- Securing all components of a network to ensure only approved users are allowed access
- Following a strict schedule for patching any software issues
- Regularly reviewing and deleting any unnecessary user accounts
- Segmenting critical network components and services
- Checking how comprehensive the system is with regular vulnerability scans
It’s these preventative measures which greatly reduce the chance of falling victim to an attack.
Educating employees
Your staff are the beating heart of your organization. Unfortunately, they’re also responsible for a large proportion of financial crimes. It’s estimated that as many as 90% of cyber crimes are made possible because of human error.
The easiest solution here is to make sure employees are being educated properly through regular security awareness training. This should involve providing clear examples of modern tricks criminals are using, as well as highlighting a detailed breakdown of common scams like baiting, phishing, whaling and scareware.
Having a robust recovery strategy
While in an ideal world this step wouldn’t ever be necessary, sometimes cyber crime is unavoidable. The best way to counter being a victim is having a strong policy in place to help you immediately deal with and recover from an attack. The quicker this is enacted, the better.
Techniques to adopt here could be to:
- Ensure all incidences and post-attack workflows are clearly documented and accessible
- Carry out regular cyber recovery exercises, audits, and penetration testing
- Maintain a good working relationship with federal and local law enforcement agencies to make communication seamless
- Think about having a cyber insurance policy to help with the immediate financial aftermath
By knowing how best to react to a breach, a financial lender can mitigate a lot of the more severe resultant issues.
While cyber crime isn’t going to cease any time soon, the combative approach which financial organizations are taking to dampen its impact are helping to keep trillions of dollars safe every year. Make sure to use this guide as your starting point when thinking about your own cyber threat prevention strategy.
