5 Cybersecurity Issues that Banks Face
In 2016, the International Data Corporation (IDC) estimated that the financial industry invested $8.6 billion in security solutions, which is more than any other industry. Modern banks are well aware that they are large targets for cyber-attacks and data breaches. The reasons are obvious to all involved; with a wide range of personal customer data on file, as well as financial information, banks must be innovative organizations on the cybersecurity awareness front. This is relatively new ground for many in the financial industry. Banks were initially designed as secure places to physically handle and transfer money; now that very concept must encompass the virtual world.
Overall, the banking industry has done a good job with this, but cyber-attacks are still a constant, and not all will be thwarted. In 2014, JPMorgan Chase suffered a major attack in which the information of 76 million households and seven million small businesses was lost. This ended up costing the company nearly one billion dollars.
This leads us to an important question: what cybersecurity issues should financial institutions concern themselves with most in 2017? We thought of five concepts that those in the financial industry should focus on.
- Evolving Threats: Risk sources and methods change
constantly. This means banks must be nimble and forward leaning in threat protection. The issues your organization focused on yesterday will be replaced by newer, less well-known threats today.
- Huge Breaches: A large-scale breach negates all of a bank's hard work. Losing control of data on a massive scale is the fear of every financial organization and the goal of those who attack.
- Wasted Time: False positives via anti-money laundering systems are a huge drain on time and ability of many major banks. A 2016 Ponemon Study showed that 70% of organizations are overwhelmed by the pure volume of data they generate in an effort to maintain cybersecurity. This makes the identification of critical information all the more important.
- Customer Account Vulnerabilities: Customer accounts are vulnerable due to a wide array of entry points, and once a cyber-attack gains access through one, they sometimes can easily move through the system at large, often undetected.
- Lack of Collaboration: Collaboration is an excellent opportunity for the financial industry to mitigate threats. The industry is working to create more participation in cyber threat intelligence sharing through organizations like the Financial Services Information Sharing and Analysis Center (FS-ISAC).
Taken together, some things become clear for the banking industry. Communication and collaboration must get better, threats are never completely put to bed, and solid information platforms for threat intelligence are vital. NC4's CTX/Soltra Edge was designed exactly with these concerns in mind, and we have spent years perfecting solutions to improve cybersecurity awareness.
Contact us today at 877-624-4999 to find out how we can give your company the edge.
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