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inancial Institutions’ Guide to Cyber Security Cybersecurity concerns are growing overwhelmingly in all types and sizes of businesses. But one sector that has the most profound fears is the financial services sector, and for a good reason. In today’s modern world, almost all valuable information of any financial organization is stored electronically. Also, more systems and databases are used in the financial institutions as the world continues to exponentially employ the use of the internet and mobile technologies for data transmissions and the making of transactions. All these electronic activities in financial institutions make the risk of cyber-attack imminent.
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inancial institutions have to go beyond protecting vital data such as customer records or any other confidential documents and face the more significant challenge of safeguarding their systems, networks, and financial assets under them. In case several institutions are attacked simultaneously, the blow on market confidence and the nation’s financial stability would be catastrophic. Cybersecurity insinuations are so severe that in 2015, the US Director of National Intelligence ranked cybercrime as the top national threat saying that its risk is ”higher than that of terrorism, espionage, and weapons of mass destruction.” The dangers posed by cybercrimes against the financial services industry have raised concerns and is now on the spotlight of watchdogs globally. Financial institutions have all the rights to be highly concerned about their cybersecurity. According to the 2015 Industry Drill-Down Report from Websense, the financial services sector faces cyber-attacks 300% more frequently than any other sector. In the first half of 2015 alone, the Identity Theft Resource Center counted at least 30 known breaches in the financial sector. In the same year, business leaders have it upon themselves to prevent cyber-attacks. 2015 Travellers Business Risk Index states that 80% of leaders from the financial services sector cited prioritizing the fight to avoid cyber risks, above compliance, legal, and other economic concerns. Many of the leaders have taken measures to strengthen their cybersecurity position. However, the sector still faces the same challenge due to the speed of technological advancements and the continuously sophisticated nature of cyber-attacks.
What triggers cyber-attacks? One of the primary triggers of cybersecurity threats to the financial services sector is the increased exposure to foreign intelligence entities and the propagation of digital data. This data poses a considerable threat to any financial institution once it lands on the hands of hacktivists influenced by political or social agendas or anyone seeking to cause systematic chaos in the financial markets. 24
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THE POWER IS NOW MAGAZINE | JULY 2020
