Cyberattacks are a reality, and financial firms face unique challenges when protecting data. Having a solid security framework and following best practices can minimize the risk of a data breach. It’s also important to build human firewalls by educating employees on cybersecurity best practices.
Have a Plan for Incident Response
The financial industry is based on data, PII, and other sensitive information. This makes it a prime candidate for cyberattacks. The financial sector ranks second among sectors impacted by data breaches. (Notifiable Breaches Report). It is, therefore, even more, critical for businesses in this industry to adhere to the cybersecurity in the financial industry best practices. Documenting and identifying any evidence of a breach is one of the most important aspects of a response strategy.
You can use this information to identify the root cause of an incident and how it occurred. Then, you can take measures to prevent future incidents. A plan is essential for communicating with your customers during a cyber incident. It will also increase customer confidence and reduce the impact of a cyber incident in the short term. It is essential to practice and test your response plan. It will help your team know what they should do in case of an incident and highlight any weaknesses or gaps in your response process.
Have a Security Policy
The financial sector houses a large amount of sensitive customer information. If this data falls into the wrong hands, it could lead to identity theft and financial fraud. This makes the industry need robust security measures to protect their systems. This is particularly important because the financial services industry relies heavily on technology. New advancements in online banking and instant payments require sophisticated technology to function. Unfortunately, this heightened technology increases the attack surface and introduces new vulnerabilities.
In addition, the financial services industry often uses third-party vendors for critical business processes. These third-party vendors can present significant security risks. This is especially true when the third-party vendor’s employees have access to the company’s confidential information. To mitigate these risks, financial companies should have a clear policy regarding the admission of third-party employees and a process for vetting and monitoring their security. They should also have backup procedures in place to minimize the impact of a data loss incident. This could include physical drives, cloud solutions, or a combination.
Have a Plan for Recovery
The financial industry must keep pace as cyberattacks become more sophisticated and widespread. This requires an enterprise security framework that aligns business needs with compliance requirements. Following best practices can help reduce operational and reputational risk. An MSSP can be an expert partner in implementing and monitoring financial cybersecurity. In addition to ensuring that all employees have a plan for responding to security threats, it is essential to vet third-party vendors.
Behind the scenes of most significant financial services companies are many smaller partners that provide various business functions. This can make it difficult to know who is responsible for what and introduce additional cyber risks. A plan for vetting, auditing, and managing these third-party vendors is essential to financial cybersecurity.
Have a Plan for Vendor Management
Like all businesses, the financial industry must work hard to protect their customers’ personal information and banking data. Unfortunately, criminals find it very convenient to target this industry because it’s “where the money is.” Cyberattackers know that when sensitive data is breached, the consequences can be devastating for consumers and lead to a loss of trust in a brand. As a result, financial services need to strengthen their third-party management program and implement policies to ensure that their trusted service providers meet their security requirements.
For example, many financial institutions are instituting scheduled meetings, reporting, and independent testing to monitor and manage third-party risk—regular vulnerability assessments and penetration testing help identify weaknesses before they become data breaches. It’s also critical to involve the Board of Directors and upper management in the vendor management process. This will help get buy-in and support for this crucial Information Security function but will help save time by allowing the institution to focus resources on areas of greatest need.
Have a Plan for Training
Financial services companies rely on technology to offer consumers easy and convenient products. However, this high technology use introduces vulnerabilities that cybercriminals target. The sector is also prone to data breaches and phishing scams. Criminals pursuing these cyberattacks typically seek personal information about account holders or debit card details to commit fraud. Additionally, criminals often seek ransomware attacks.
These attacks encrypt the bank’s data until the business agrees to pay a ransom. Community banks must educate their employees about common cybersecurity threats and help them build human firewalls. This training will encourage employees to use strong passwords and avoid responding to phishing messages that appear legitimate. Additionally, the industry’s best practice is to perform regular vulnerability assessments and penetration testing. These tests will help the financial services sector to strengthen its security posture and meet the stringent requirements of most regulations.
