Where financial institutions need to strengthen their cyber security

“What is clear is that many FIs have adopted modern and innovative security measures that make companies more secure in the face of risk. This should not be overlooked when we compare the financial sector with its peers in other sectors of the industry,” said Phillips.

“But unfortunately, the threat landscape continues to grow. Therefore, what we see are advanced and highly specialized cybercriminals, who are in a dark race of tragic innovations, where they are focused on finding success at the beginning, better tools to move on, and then they have developed more destructive methods of Ransomware is an extortion that financial institutions have to deal with.”

Phillips also highlighted the current “problem of growth”, where several organized crime groups have developed attack tools that other, smaller groups of criminals can use and monetize. One example of that is ransomware-as-a-service (RaaS), a business model between ransomware users and service providers whose partners pay to launch user-generated ransomware attacks.

“I think financial threats have evolved more and more into cybercriminals that have been using this sector more and more,” Phillips told Insurance Business. “There is also a problem of growth, with cybercriminals who may not be technological, but are looking for any opportunity to make a quick buck.”

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Hard data shows that FIs are often lagging behind in email management, making them vulnerable to fraud that leads to cybercrime. In particular, fraud threats are at the top of Verizon’s 2022 Data Breach Investigations Report (DBIR) in economic threats and lead the FBI’s 2021 reported digital crimes, with more than 300,000 incidents.

“When it comes to business email attacks (BEC), it’s important to highlight that while some of the entry methods are similar, many of the cybercriminals have different goals,” Phillips said. “Some want to trick an employee into sending them money directly, while others want to capture data for the purpose of identity theft, intellectual property theft, or other privacy crimes.”

There are steps FIs can use to better protect their clients’ personal information and personal information. According to Phillips, the most important part of the plan includes managers being able to better understand the impact of cyberattacks on the economy and respond, as well as implementing effective strategies that combat current threats.

“Fis are often more than basic when it comes to cyber security, but of course, multi-factor authentication (MFA), especially for privileged accounts, is very important for financial institutions,” Phillips said. “Technology’s state-of-the-art detection and response (EDR) technology, which prevents malicious files from spreading across the Internet, is another important investment.”

The head of Resilience claims encouraged FIs to increase their cyber security efforts in three key areas: threat intelligence – the discipline in which experts collect, process, and analyze data to understand the threats actors’ intentions, goals, and attack patterns; access management – creating security blocks and checks on the entire network; and practice recovery from backups – ensuring business continuity after a business disruption in a cyber incident.

One area where FIs must “continue to mature,” according to Phillips, is in their third-party risk management. He added: “Although protecting the four walls of your palace is very difficult, FIs should not forget that they are vulnerable to vendors and other providers – IT vendors, software providers, law firms, and construction companies. – who rely on them to achieve their mission and serve their customers. The more ransomware hits FIs directly, the more we see FIs being harassed – putting the data or business of financial institutions at risk.”

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When it comes to managing supplier risk, Phillips shared a few ideas. First, he said that FIs should make a list of their existing vendors and the data they have. Next, they should categorize the vendors into risk groups to understand what the vendors are most important to their business, and review which drivers or data would be at risk when their business is at risk.

“It’s also important to exercise due diligence in selecting vendors,” Phillips added. “Unfortunately, in the financial sector, with their heavy reliance on third-party vendors for performance, FIs often choose vendors based on price or capability, and later realize that they need to monitor these vendors for their cybersecurity practices and best practices. . what they bring to the table in terms of cybersecurity. And for that reason, building a proactive approach into the vendor selection process is very important.

“FIs must also set up monitoring and supervision of the sellers of the risk they need to carry out their business. They must look at them carefully, monitor their behavior and actions, and they must have a plan for remediation if the seller does not meet the requirements, or meets and cyber incidents.”