{"id":38570,"date":"2023-10-23T14:04:26","date_gmt":"2023-10-23T13:04:26","guid":{"rendered":"https:\/\/www.innovationnewsnetwork.com\/?p=38570"},"modified":"2023-10-23T14:04:26","modified_gmt":"2023-10-23T13:04:26","slug":"how-banks-financial-services-firms-can-guard-against-cyber-security-threats","status":"publish","type":"post","link":"https:\/\/www.innovationnewsnetwork.com\/how-banks-financial-services-firms-can-guard-against-cyber-security-threats\/38570\/","title":{"rendered":"How banks and financial services firms can guard against cyber security threats"},"content":{"rendered":"
Technology has evolved at breakneck speeds over the past decade, and with it, so have threats that financial services companies and their customers are exposed to.<\/p>\n
The data security risks that cyber attacks introduce are unprecedented, not to mention the financial cost that these incur. Trustwave\u2019s 2023 Financial Services Sector Threat Landscape Report<\/a> found that close to $6m is lost with every breach that financial institutions suffer.<\/p>\n As banks persistently allocate resources to modernise their operations, they integrate a plethora of systems into their IT networks, which are no doubt a necessary part and parcel of technological innovation. These systems fulfil diverse functions, such as enabling remote work, enriching customer experiences, and propelling value generation.<\/p>\n At the same time, they expose potential vulnerabilities that malicious entities might latch on to. This means that banks and financial services firms require a reinforced security strategy.<\/p>\n This kind of strategy would encompass the length and breadth of identification of weak points in the digital banking infrastructure, thorough risk and operational assessments, and increased agility of responses, for developing best practices and future resilience planning.<\/p>\n Operational awareness and defensive measures<\/strong><\/p>\n A comprehensive assessment of operational vulnerabilities from technology risks tied to automation and Artificial Intelligence, to data leaks, can help identify potential weaknesses in the digital infrastructure.<\/p>\n It\u2019s crucial, as an initial step, to prioritise frequent risk assessments. Data encryption shouldn\u2019t be underestimated here as access controls protect sensitive information and implementing multi-layered security protocols from robust firewalls to antivirus software can help guard against avoidable risks.<\/p>\n The role of technology and data governance<\/strong><\/p>\n Data protection and compliance with regulations like GDPR in Europe, combined with managing access to sensitive data and leveraging cyber security<\/a> solutions, can help banks remain a step ahead of threats.<\/p>\n In the swiftly changing world of digital banking, secure and user-friendly authentication methods take on paramount significance. Conventional techniques like passwords and PINs fall short in safeguarding critical financial information in the face of cyber threats. Transitioning to passwordless, phishing-resistant solutions is paramount to enabling safe and secure online experiences.<\/p>\n Biometric authentication aside, AI and ML\u2019s potential in threat detection and awareness can enhance data security and trust in financial institutions. AI can bolster cyber security measures, and proactively identify suspicious traffic, network connections, distinguish phishing attempts, and other clandestine activities by processing threat intelligence faster than with human intervention.<\/p>\n It can also be used to automate incident handling where agility can minimise damage and aid recovery for the institution. From detection to response and analysis, AI powered tools can make data classification, access management, and data protection more robust.<\/p>\nFortressing against threats<\/h3>\n