Cybersecurity and Finance have always been intertwined. After all, financial institutions handle large amounts of sensitive data on a daily basis, making them attractive targets for cybercriminals.
In recent years, the number of cybersecurity incidents involving financial institutions has risen sharply. According to a report from IBM, the number of data breaches in the financial sector increased by 27% from 2017 to 2018. What’s more, the average cost of a data breach for a financial institution is now $7.91 million – up 6% from the previous year.
As the cost of cybercrime continues to rise, it’s becoming clear that cybersecurity is no longer an optional expense for financial institutions. Instead, Cybersecurity and Finance will move in tandem moving forward!
In a first for Australia, the Federal Court determined that financial services company RI Advice had violated the terms of its license by failing to put in place proper risk management procedures to address cybersecurity concerns.
This is a significant development, as finance companies are increasingly reliant on cybersecurity measures to protect their data and operations. The judgment requires financial service companies to implement cybersecurity management plans that are appropriate for their size and complexity and to regularly review and update these plans in response to changes in the threat landscape.
This will help to ensure that financial companies are better prepared to defend against cyberattacks and protect their customers’ information.
This decision assisted in setting a new standard for cyber precedence in Australia.
Why Cybersecurity and Finance Sectors need to move together
In recent years, cybersecurity has become an increasingly important issue for the financial industry. The industry is faced with a number of challenges that increase the risks of cyberattacks, including the high value of data, the global interconnectedness of financial institutions, and the increased reliance on technology.
Understanding the connectivity between cybersecurity and finance institutes and how these challenges are crucial to developing a resilient cybersecurity strategy. The high value of data is one of the most significant cybersecurity challenges faced by the financial industry.
Financial institutions hold vast amounts of sensitive customer information, making them an attractive target for cybercriminals. In addition, the interconnectedness of the financial system makes it difficult to isolate a single institution from an attack. A breach at one institution can quickly spread to others, causing widespread damage.
The increased reliance on technology is another challenge that contributes to the risks faced by the financial industry. Financial institutions rely heavily on computers and other electronic systems to process transactions and manage data.
This dependence makes these systems vulnerable to cyberattacks that could disrupt operations or result in the loss of confidential information. To be resilient against these threats, it is essential for financial institutions to understand the cybersecurity challenges they face and develop comprehensive strategies to address them.
Continuous Digital Transformation and Innovation as a cybersecurity challenge
For financial institutions (FIs), cybersecurity is a fundamental and continuous concern. They face various cybersecurity challenges, including the need to protect customer information, meet compliance requirements, and prevent disruptions to digital services. The ever-changing landscape of emerging technologies creates both opportunities and risks for FIs.
The adoption of cloud-based solutions, artificial intelligence (AI), and other digital services can help FIs improve their cybersecurity posture by increasing information processing, fraud detection, and financial analytics capabilities. However, these same technologies can also introduce new cyber threats that must be addressed.
As such, FIs must continuously adapt their cybersecurity strategies to stay ahead of the curve. By understanding the latest emerging technologies and their potential impact on cybersecurity, FIs can make informed decisions about which solutions to adopt in order to best protect their customers and businesses.
Finance Institute face Complicated Regulations in CyberSecurity
Finance institutes are enmeshed in a world of complex regulations related to cybersecurity. They are tasked with the protection of client data and collaborative networks, while at the same time striving to offer innovative products and services.
In this rapidly changing digital landscape, compliance with ever-evolving regulatory requirements is a challenge.
Financial institutions must continuously invest in the latest technology and security solutions to protect against sophisticated cyber threats. They must also develop robust policies and procedures to ensure compliance with applicable regulations.
The costs associated with these efforts can be significant, but the alternative – suffering a data breach or failure to meet regulatory requirements – is even more costly. As financial institutions become increasingly reliant on technology and data, they will continue to face challenges in complying with an evolving regulatory environment.
Complex Supply Chain Ecosystem for CyberSecurity and Finance
In today’s digital world, financial institutions rely on third-party service providers to fulfill many of their day-to-day operations. While most FIs have robust security systems in place, third-party service providers may represent a weak link in the chain of cybersecurity. The complex supply chain ecosystem for both cybersecurity and finance makes it difficult to track and manage all potential risks.
As a result, FIs must carefully vet their service providers and monitor them on an ongoing basis to ensure that they are meeting all cybersecurity standards. By taking these precautions, financial institutions can help protect themselves against the ever-growing threat of cyberattacks.
Hybrid Workplace, CyberSecurity, and Finance Institutes
Organizations’ increased risk in the recent changes to the ways of working accelerated by COVID-19. The hybrid workspace combining in-office and remote employees has organizations struggling to keep up with the new demands for cybersecurity.
Hybrid workplaces present new opportunities for cybercriminals to exploit, as well as organizations who are trying to keep their business secure. With more employees working remotely, there are more potential entry points for cybercriminals to exploit.
Furthermore, the increased use of cloud-based applications and services has also introduced new risks.
Organizations need to be aware of these risks and take steps to mitigate them. One way to do this is to implement a comprehensive cybersecurity program that includes awareness training, security safeguards, and incident response plans. By taking these steps, organizations can help protect themselves from the increased risks associated with the hybrid workplace.
Threat-Centric Approach for CyberSecurity and Finance Sectors
A threat-centric approach is one that focuses on the identification, analysis, and response to threats as they happen. This type of approach is needed in order to keep up with the ever-evolving landscape of cybercrime. As criminals adapt their tactics and techniques, financial institutions must do the same in order to protect themselves and their customers.
Threat intelligence is essential in this process, as it provides insight into the latest threats and how they can be mitigated.
A living PPT framework is also necessary, as it enables organizations to learn from past threats and adapt their defenses accordingly. By implementing a threat-centric approach, financial institutions can stay ahead of the curve and keep their data and services safe from harm.
A Threat-Centric Approach is the most efficient way to utilize available resources and purchase new ones. It should be understood, however, that this will not be a cure-all for all of the sector’s problems.
What it can do is fill in the gaps between different security layers, providing much-needed continuity and increasing overall effectiveness. This is achieved by identifying potential threats and then taking steps to mitigate them before they cause any damage.
Such an approach requires close collaboration between different departments within a financial institution, as well as with other organizations within the sector. Only through such cooperation can the full extent of a potential threat be accurately assessed and the necessary response devised.
While it may require extra effort to implement, a Threat-Centric Approach is essential for ensuring the ongoing security of the finance sector.
JumpStart Security is The Complete Cybersecurity Platform for Financial Institutions
JumpStart Security is The Complete Cybersecurity Platform with next-generation threat prevention, detection, and response capabilities. Powered by big data and machine learning, JumpStart Security’s platform analyzes billions of events daily to provide comprehensive visibility into cybersecurity threats and risks across the network and endpoints – all from a centralized dashboard.
With the visibility that JumpStart Security brings, financial institutions can quickly reveal gaps in their cybersecurity posture and mitigate risks by applying actionable remediation and mitigation insights provided by Picus.
JumpStart Security’s platform is also designed to be easily deployed and managed for customers of all sizes. So if you’re looking for the complete package when it comes to cybersecurity, JumpStart Security is the answer.
JumpStart provides a real-time snapshot of an organization’s security posture and generates alerts when an organization’s security score goes below a predefined threshold. As enterprises increasingly move towards digital transformation, it is important for JumpStart to provide a comprehensive cybersecurity solution that can protect against the ever-evolving threat landscape. With JumpStart, financial institutions can have peace of mind knowing that their data and systems are safe and secure.
Concluding Remarks
While the COVID-19 pandemic has forced many businesses to re-evaluate their cybersecurity strategies, the risks to financial services firms have remained largely unchanged.
In fact, as companies in this sector have become increasingly reliant on digital tools and technologies, they have become even more attractive targets for cybercriminals.
As a result, IT and security leaders in the financial services sector must continue to invest in the right combination of technology and expertise to improve their assurance.
By regularly testing and validating controls, financial services firms can identify weaknesses and make the necessary corrections before an attack occurs. In today’s ever-changing threat landscape, this proactive approach is essential for protecting data and ensuring business continuity.