Businesses in the financial services sector contain money, confidential company data and customer information, and will always be a target for cyber attacks.
In 2014, IBM named the financial services industry most vulnerable to cyber attacks.
Today banks are scrambling to tighten up their security efforts to prevent the spiral that happens after a security breach. Currently data breaches in the financial sector are expensive, and in addition to losing the confidence of current and potential customers, banks also lose an average of $141,249 per cyber attack.
To save time and potentially millions of dollars, read on and learn the top 5 cyber security mistakes businesses in the financial services sector make.
Focusing on one security aspect
You have to approach creating a cyber security strategy with a “big picture” mindset. Cyber security is a complex game and can be overwhelming if you don’t take the time to understand all the moving pieces.
Most security strategies focus on one part. Threat detection solutions is a huge priority in many bank’s cyber security plan, but most banks also forget to focus on improving different aspects such as incident response or enhancing cultural awareness towards cyber security.
To avoid focusing on just one aspect of the cyber security plan, consider hiring a cyber security consultant to revise your strategy and point out any vulnerability.
Missing one of cyber security’s “key pillars”
The New York State Department of Financial Services made a report on cyber security in the banking sector and found an interesting trend. The cyber security plans of almost 90% included all 5 key cyber security pillars.
The 5 key pillars of a cyber security strategy are:
1) a written information security policy, 2) security awareness education and employee training, 3) risk management of cyber-risk, inclusive of identification of key risks and trends, 4) information security audits, and 5) incident monitoring and reporting.
Review your current cyber security plan and if needed, include any missing pillars to have a holistic plan.
Lack of Networking
Share the different types of attacks you’ve encountered and what steps in your cyber security plan affected your bank in a negative or positive way. Cyber security is still a new industry, and any knowledge will benefit the financial services sector as a whole.
Attend cyber security events and engage in LinkedIn or Facebook groups to learn more from people with the same problems and concerns.
Relying too heavily on software
Cyber security software is a necessity and needed in any successful cyber security strategy, but software can’t be the only protection effort that banks enforce. Software that isn’t updated or doesn’t take social engineering into account is not efficient in the overall cyber security strategy.
In addition to integrating & updating cyber security software, a financial institution should use other cyber security defenses such as encryption and defined BYOD rules to protect any potential entry points.
Not Incorporating Biometric Authentication
Biometric authentication is the key to combat fraud and identity theft. Over the past six years, fraudsters have stolen $112 billion from banks with identity fraud, which equates to $35,600 per minute.
With biometric authentication, only authorized customers can make purchases and withdrawals, and banks save millions.
One trusted biometric card is the Gardevant Card.
The Gardevant Card is a patented, encrypted, and multimodal biometric card. It authenticates, verifies, and protects cardholders’ identities & payment information, ensuring transactions are securely made only by the authorized user. Every purchase is secure because Gardevant requires a fingerprint verification each time.