Understanding and responding to threats in the financial sector

Few sectors are a more attractive target for cybercriminals than the data-rich and highly digital financial services industry. In fact, recent data shows a disturbing upward trend in ransomware attacks against financial services institutions, with the incidence rate increasing from 55% in 2022 to 64% in 2023. Take banks as an example. According to data from the International Monetary Fund (IMF), of all financial organizations, banks have become the most common target of cybercriminals over the last 20 years, causing losses of more than $3 billion. Not only are banks responsible for the personal data of billions of people, but advances in online banking, mobile apps and instant payments require new technology that invariably increases their attack vector and introduces new security vulnerabilities.

The size of the institution does not provide protection against the sophisticated cyber threats of today. After all, bad actors managed to breach the U.S. financial services division of the Industrial and Commercial Bank of China (ICBC) in November 2023. Financial service providers of all kinds are being targeted by sophisticated hackers, and it’s easy to see why. A successful cyberattack can result in massive financial losses, severe regulatory penalties, and permanent reputational damage. It is crucial that financial services companies are prepared to meet this challenge.

Minimizing blind spots

To effectively strengthen defenses against cyber threats, financial institutions must first better understand their potential vulnerabilities. These can include outdated software and unpatched systems, as well as human error and insufficient access control. The responsibility for protecting sensitive data means that financial services companies cannot afford to lack security in their digital assets. Especially as more employees work remotely and operations are spread across multiple geographic locations. Any weak point can provide cybercriminals with an entrance into the network.

To overcome the challenge of security blind spots, a comprehensive monitoring approach is required. Traditional security tools often fail, creating bottlenecks and inefficiencies, thus leaving gaps that can be exploited by cybercriminals. Instead, adopting a more detailed monitoring strategy ensures that all areas of the network are under constant surveillance.

This method not only prevents unauthorized access, but also reduces the risk of data breaches by providing specific and useful information. By integrating advanced monitoring technologies that provide detailed visibility into every segment of their digital environment, financial institutions can more effectively secure their assets and provide comprehensive protection without the operational delays typical of legacy systems. This level of vigilance is critical to maintaining the integrity of highly sensitive data and protecting against the evolving cyber threat landscape.

Improved data correlation

The nature of the financial services industry means that the amount of sensitive data an organization collects every day is often incomprehensible. A significant amount of security data is stored there. Traditional security systems often have difficulty integrating and analyzing data from various sources, which can make detecting and responding to threats much more difficult. An effective approach is to streamline the correlation of all safety data in one consistent format.

This integration enables analysts to quickly and accurately identify who, what, where, when and how of any security event, thus eliminating the cumbersome process of combining information between disparate systems. This streamlined approach not only speeds response times, but also increases the effectiveness of security measures. By simplifying data analysis, institutions can improve their ability to prevent and respond to threats, making their cybersecurity operations more agile and reliable.

Alarm noise reduction

Like many security teams, cybersecurity resources at financial services companies are often stretched thin. As a result, managing the flood of alerts generated by traditional security tools poses a significant challenge. A more strategic approach involves the use of AI-powered reasoning frameworks that place greater emphasis on delivering only truly positive alerts. This precision in alert management dramatically reduces the number of false positives, thereby reducing the operational burden on security teams.

Focusing solely on real threats allows institutions to optimize security resources and increase threat response capabilities. Additionally, by improving alert management, financial institutions can achieve more effective security operations, significantly reducing the costs associated with cybersecurity management. This strategic shift ensures that cybersecurity efforts are more focused and effective, and helps maintain the integrity of financial operations by preventing unnecessary distractions and resource drains.

In a sector where the stakes are high and threats are increasingly sophisticated, financial services companies must leverage artificial intelligence to protect their assets. Achieving strong cybersecurity is an ongoing process and ultimate goal that requires constant vigilance and adaptation. By applying appropriate proactive measures, financial services can defend themselves against the ever-present threat of cybercrime.