What Financial Services Executives Need to Know About Data-Security

The financial services industry experiences 35% of all data breaches, earning it the unflattering title of the most-breached sector. It’s easy to understand why. 
 
The industry is known for its wide array of interconnected systems and the processing of millions of transactions, factors that render it particularly vulnerable to attack. As the threat, frequency and impact of these attacks increase, new legal risks emerge, including litigation and steep regulatory fines. 
 
In fact, according to a Forbes Insights/K&L Gates survey, the trends that present the most potential for legal risks include dealing with data (69%), cybersecurity (47%), a changing regulatory environment (46%), fraud protection (39%) and digital transformation (39%). 
 
Regulators are reacting quickly. For example, the US Securities and Exchange Commission recently issued new guidance calling for public companies to be more forthcoming when disclosing cybersecurity risks, even before a breach or attack occurs. 
 
Financial institutions are also stepping up to increase data security. For instance, 92% of the 200 US financial services executives surveyed by Forbes Insights are currently using encryption technology. But getting ahead of hackers requires knowing the dangers that lurk outside an organisation. Here are the top three threats facing the financial services industry:
 
1) Web Application Attacks
Financial institutions rely on business-critical web applications to serve customers, promote their services and connect to back-end databases. However, many of these applications are hosted online, making them easily accessible to hackers. Types of web application attacks range from buffer-overflows to SQL injection attacks, in which a hacker injects SQL statements into a data-entry field, tricking the system into revealing confidential data.
 
2) DDoS Attacks
Distributed denial of service (DDoS) attacks impair the performance of resources, such as servers, causing websites and applications to slow down or crash. The result: angry customers who are unable to access critical financial services when they need them most. For financial services firms, the repercussions can be even worse, including disrupted business flows, stolen data, damaged reputation and lost revenue.
 
3) Insider Threats
Beyond hackers, employees are among the top cybersecurity threats to financial institutions. Often-times, unwitting workers fall victim to phishing scams or accidentally download malware. 
However, disgruntled employees may collude with hackers by sharing their passwords or intentionally ignoring corporate cybersecurity protocol. Either way, insider threats can take months, sometimes years, to detect.
 
Safety Practice 
Amid increased exposure to these risks, financial institutions need to take measures to ensure greater data security and minimise legal exposure. To do so, consider the following steps:
 
• Draft internal policies, procedures and contractual provisions regarding the discovery, investigation, remediation and reporting of breaches.
• Obtain the right insurance coverage for various types of cyber risks and consider the adequacy of existing insurance programs.
• Partner with a third-party cybersecurity team that can help manage internet security and prevent cyberattacks and data breaches. 
 
In today’s hyper-connected, technology-driven financial services sector, data security breaches, DDoS attacks and insider threats are on the rise.  However, executives in the industry can take action by educating themselves on the dangers ahead and taking the right precautionary measures.
 
Forbes
 
You Might Also Read:
 
5 Cyber Threats Executives Should Understand:
 
 
« The US Pentagon Has Numerous Security Gaps
GCHQ Introduces Women Only Cybersecurity Training »

ManageEngine
CyberSecurity Jobsite
Check Point

Directory of Suppliers

Directory of Cyber Security Suppliers

Directory of Cyber Security Suppliers

Our Supplier Directory lists 8,000+ specialist cyber security service providers in 128 countries worldwide. IS YOUR ORGANISATION LISTED?

ManageEngine

ManageEngine

As the IT management division of Zoho Corporation, ManageEngine prioritizes flexible solutions that work for all businesses, regardless of size or budget.

BackupVault

BackupVault

BackupVault is a leading provider of automatic cloud backup and critical data protection against ransomware, insider attacks and hackers for businesses and organisations worldwide.

DigitalStakeout

DigitalStakeout

DigitalStakeout enables cyber security professionals to reduce cyber risk to their organization with proactive security solutions, providing immediate improvement in security posture and ROI.

Syxsense

Syxsense

Syxsense brings together endpoint management and security for greater efficiency and collaboration between IT management and security teams.

Cristie Data

Cristie Data

Cristie have been a trusted, innovative and leading edge data storage, backup and virtualisation solutions provider across all sectors of industry for over 40 years.

Altron

Altron

Altron provides locally relevant innovative and integrated ICT solutions to business, government and consumers.

Cyber Intelligence (CI)

Cyber Intelligence (CI)

Cyber Intelligence is an award winning 'MSC status' cyber security education and training company.

Tutamantic

Tutamantic

Tutamantic develops software that reduces security risks and weaknesses during the architectural and design stages.

ThreadStone Cyber Security

ThreadStone Cyber Security

ThreadStone Cyber Security offer reliable, practical and affordable cyber security solutions for both large and smaller organizations that we develop and deliver ourselves from Europe.

MyCyberSecurity Clinic (MyCSC)

MyCyberSecurity Clinic (MyCSC)

MyCyberSecurity Clinic's main goal is toward establishing an international reference centre for excellence in the field of digital forensics and data recovery services.

Cohesity

Cohesity

Cohesity radically simplifies the way businesses back up, manage, protect, and extract value from their data—in the data center, at the edge, and in the cloud.

Soffid

Soffid

Soffid provides full Single-Sign-On experience and full Identity and Access Management features by policy-based centralised orchestration of user identities.

Noblis

Noblis

Noblis is a dynamic science, technology, and strategy organization dedicated to creating forward-thinking technical and advisory solutions in the public interest.

SecurIT360

SecurIT360

SecurIT360 is a full-service specialized Cyber Security and Compliance consulting firm.

Tenable

Tenable

Organizations around the world rely on Tenable to help them understand and reduce cybersecurity risk across their attack surface—in the cloud or on-premises, from IT to OT and beyond.

Cyberplc

Cyberplc

Cyberplc is a global cybersecurity consulting firm providing services to government, the public sector and enterprises.

Cyberlocke

Cyberlocke

Cyberlocke is dedicated to finding inventive solutions to meet the distinct IT obstacles of each organization we support.

Cybersecurity Agency of Catalonia - Spain

Cybersecurity Agency of Catalonia - Spain

Cybersecurity Agency of Catalonia is responsible for implementing public policies in the field of cybersecurity and developing the cybersecurity strategy of the Generalitat de Catalunya.

Operant Networks

Operant Networks

Operant Networks mission is to provide Operational Technology (OT) teams with solutions that simplify their increasingly complex worlds.

BUI

BUI

BUI is a global technology consultancy and Cloud Solution Provider specialising in cloud, security, and networking solutions for mid-market and enterprise-level business across the world.