Will Cyber-security Be One Of The Top Risks Facing Financial Institutions

Cyber-Security: The Biggest Threat To Financial Institutions

In this digital age, financial institutions are faced with constant cyber risks. Financial institutions must be able to defend their data and user information without sacrificing ease of access or functionality. With so much sensitive data at risk, financial institutions need to take an aggressive stance toward cyber-security. Understanding the threat, as well as your organization’s current degree of security, is the first step in protecting your business from cyber attacks. A recent report found that nearly half of all cyber security professionals fear a catastrophic breach that could potentially bankrupt an institution or destroy its reputation as a safe custodian of customer funds. Whether it’s ransomware, phishing attacks, insider threats, malicious software or other dangers lurking online—financial institutions should take these concerns to heart and implement measures to protect against potential attacks.

Understanding The Financial Institution’s Cyber-Security Threat

Financial institutions are under constant attack from a variety of cyber threats. Some of the most common include: Ransomware, Phishing Attacks, Malicious Software, Insider Threats: Employees and Contractors Ransomware attacks occur when hackers hold data hostage. They might encrypt or lock down your data, then demand payment for its release. According to the FBI, ransomware attacks have surged over the past few years. In 2017, there were more than 2.9 million ransomware attacks per month in the U.S. alone. That’s a 190% increase over 2016. Phishing attacks are designed to trick users into disclosing information such as login credentials, account numbers and other sensitive data. Phishing messages appear to come from legitimate sources, but are set up by hackers to trick users into thinking they are dealing with a legitimate entity. Phishing emails are often sent in large quantities to many users at once, hoping to catch a few people by surprise. Phishing emails are easily identified by the untrained eye because they often include a request for information that a legitimate entity would not need. Malicious software, such as viruses, worms, trojans and ransomware, can wreak havoc on a financial institution’s data. These malicious pieces of software can bring down servers, steal or corrupt data and cause a multitude of other problems for the organization. The WannaCry attack, for example, is an example of a malicious software attack. The ransomware encrypted data, including critical computer systems in hospitals, and held it hostage until the owners paid an exorbitant fee to have their systems unlocked.

Ransomware

Ransomware attacks occur when hackers hold data hostage. They might encrypt or lock down your data, then demand payment for its release. According to the FBI, ransomware attacks have surged over the past few years. In 2017, there were more than 2.9 million ransomware attacks per month in the U.S. alone. That’s a 190% increase over 2016. Financial institutions must take several measures to protect against ransomware attacks.

Phishing Attacks

Phishing attacks are designed to trick users into disclosing information such as login credentials, account numbers and other sensitive data. Phishing messages appear to come from legitimate sources, but are set up by hackers to trick users into thinking they are dealing with a legitimate entity. Phishing emails are often sent in large quantities to many users at once, hoping to catch a few people by surprise. Phishing emails are easily identified by the untrained eye because they usually include a request for information that a legitimate entity would not need. Financial institutions should always verify suspicious login attempts and report any suspicious activity to the proper authorities.

Malicious Software

Malicious software, such as viruses, worms, trojans and ransomware, can wreak havoc on a financial institution’s data. These malicious pieces of software can bring down servers, steal or corrupt data and cause a multitude of other problems for the organization. The WannaCry attack, for example, is an example of a malicious software attack. The ransomware encrypted data, including critical computer systems in hospitals, and held it hostage until the owners paid an exorbitant fee to have their systems unlocked. Protecting against malicious software attacks requires the implementation of an organization-wide security solution. The solution should be able to defend against malware and viruses, as well as block unrecognized or suspicious software from launching on a computer or server. The solution should also include a robust set of monitoring and management tools.

Insider Threats: Employees and Contractors

Insider threats are a real concern for financial institutions. Employees and contractors have access to sensitive data and systems, so they need to be monitored carefully. Financial institutions need to implement robust access-control mechanisms, such as two-factor authentication (2FA), to protect against insider threats. 2FA requires a user to possess two pieces of information to log in to an account. This can be a password and a token, or a PIN and a fingerprint. Financial institutions should also monitor login attempts to look for suspicious activity. Beyond login protection, financial institutions should take steps to monitor and protect against email spoofing. Email spoofing occurs when hackers send emails from a fake email address that appears to come from a legitimate source.

Conclusion

In this digital age, financial institutions are faced with constant cyber risks. Financial institutions must be able to defend their data and user information without sacrificing ease of access or functionality. With so much sensitive data at risk, financial institutions need to take an aggressive stance toward cyber-security. Understanding the threat, as well as your organization’s current degree of security, is the first step in protecting your business from cyber-attacks.