Cyber Threats are Rapidly Increasing in the Financial Ecosystem, Time to Monitor Your Choice of Security Technologies

Web based sources become an entry level point for cyber threats. Whether identity thefts or data breach, the foundation of IT systems gets disrupted to a great extent. Like every other industry, the BFSI sector is equally prone and affected by cyber criminals online. Banking, insurance and other financial institutions are challenged by the pace of innovation and upgrade in sophisticated attacks. That’s how cyber security solutions have become prevalent and widely accepted in the BFSI sector to monitor, detect and respond to cyber threats just in time and keep the critical data safe from unauthorized access.

On the flip side, if the BFSI organizations still don’t monitor their choice of digital security technologies, then attackers may get access to confidential data and credentials to further steal finances from customer accounts. The high cost of data breaches is another alarming reason why cybersecurity in the BFSI industry is critical.

Here are top 5 cyber threats challenging the BFSI industry:

  1. Phishing: These are generally an email communication that appears to be legitimate at the first glance with official corporate branding elements to gain the trust of online users. These emails create a foul play to click urgently and initiate a particular call to action. Users that respond to such emails can fall prey to identity theft, malware, credit card scam, and even blackmail in extreme situations.

  2. Spoofing: Personal banking online is convenient but not all users can differentiate between an authentic website and fake website. These days cyber attackers clone financial websites to a level that it appears to be genuine and ask for user credentials stealthily.

  3. Ransomware: Cyber criminals take advantage of the fact that banking sector cannot afford downtimes. This caused an upsurge in ransomware attacks where malware elements are injected in the IT systems to freeze operations and demand a massive ransom against it. In the process, the attacker can also destroy and steal critical data from systems and devices.

  4. DDoS Attacks: The cyber attackers target several entry-level points with multi-vector DDoS attacks, making networks, financial websites, payment ecosystem, and personal applications unavailable to authorized customers. This leads to denial of relevant financial services online.

  5. Third Party Entrants: The online banking experience involves third party contribution for various digital services such as plugging in chatbots, working with CRM software or including a third-party payment gateway. All this involves an external third-party source that forms a reason for major security crisis when security mechanisms are not applied.

Defensive Strategies to Combat Cyber Attacks in the BFSI Sector
On experiencing the aftermath of security breaches, many financial organizations today have re-established their digital security structure. The rise in IT spendings has led to an increase in digital security solutions that enable organizations to set up – vulnerability scanning, detect vulnerabilities, track patch management, detect incidents and remediate timely.

Here are some standard solutions that BFSI industry can rely to combat cyber-attacks:
* Multi-layered email strategy
* Multi-factor authentication
* Pro-active threat detection mechanism
* Database activity monitoring system
* Advanced authorization/authentication system
* Third party verification
* Digital certificates etc.

In an unpredictable cyber space, financial institutions understand the significance of being cyber resilient. A single instance of a cyber-attack can tarnish the reputation of fintech service providers. Hence, adherence to cyber security protocols can resolve privacy issues and gain customer trust in the long run.