Cybersecurity is a critical issue in the finance industry. Findings from a survey conducted by CSBS indicated that more than 70% of banks ranked cybersecurity as their most important risk. When cybersecurity is coupled with the complexities of the finance industry, it is helpful for C-level executives to know about these five cybersecurity facts.
1. The Financial Services Sector Leads in Targeted Cybersecurity Attacks
For four years in a row, IBM’s most recent Threat Intelligence Report found that the financial services industry retained the top spot as the most targeted sector for cybersecurity attacks. As finance companies are likely to experience a higher volume of attacks, they must implement effective tools and processes that detect and contain threats before they turn into major incidents. At the very least, financial organizations need a fully-managed backup and disaster recovery solution that protects all of their systems and data around the clock.
2. Finance Industry Ranks High as Phishing Targets
A study performed by Statista ranked financial institutions as the second-most-targeted online industry for phishing attacks. Also, the study found that during the second quarter of 2020, 18% of phishing attacks worldwide were directed toward financial institutions. This means that leaders within these organizations need to prioritize security awareness training to ensure employees do not fall prey to phishing attacks.
3. Banks Are Security Investments Leaders
According to the IDC’s Worldwide Security Spending Guide, banking is among the top three industries with the largest security investments. Managed security services dominate security investment spending and financial institutions need to deploy cutting-edge security services and technology to stay competitive.
4. Undetected Entry in Bank Systems Destroys Trust
One of the silent dangers in cybersecurity is that financial institutions may not detect an attack for several months. According to Tech Wire Asia, attackers may sit undetected in bank systems for an average of 200 days. This not only has serious financial implications and regulatory consequences for banks, but it also negatively impacts customer relations. Data loss from cyberattacks affects your customers’ confidence and trust when they do business with a breached organization.
5. Banks Focus on Prevention Over Detection and Response
When it comes to cybersecurity, banks are known to focus on prevention. According to BCG Consultants, while this strategy is useful in protecting against untargeted attacks, it is insufficient to secure the organization from determined assailants. Therefore, financial institutions must strategize beyond prevention – they need a cybersecurity program that enables them to discover and recover from cyber threats faster.
Knowing about these five areas of cybersecurity in the finance industry can make or break managed security in any institution. By prioritizing these areas, you can protect your customer’s data and your institution’s reputation.