3 Ways Enabling Banks to Thwart Financial Fraud and Cyber Crime

Banking CIO Outlook | Friday, August 09, 2019

The banking industry is naturally a lucrative target for cyber attackers, so it becomes imperative for banks to invest in cybersecurity.

FREEMONT, CA: With the increasing incidence of digital frauds and malware attacks in financial transactions, banks are now queuing up for cyber drills to check their preparedness to tackle security hazards. As they trade and control vast amounts of money and store customers’ personal information, a data breach could be disastrous for them. Given the number of personal and financial information banks store, it’s not surprising that they face a battle of retaining customer trust and loyalty. Banks are investing a great deal of time and money in cybersecurity and, every time a consumer carries out a transaction, technology monitors it and flags up any suspicious activities by comparing it with regular behavior patterns. This makes things more challenging for fraudsters. But attackers are increasingly seeking new ways to gain access to sensitive information. Banks can only benefit from taking a pragmatic approach to curbing cyber attacks. 

Information technology teams at banks should increase the protection of customer data and limit credit card fraud because the security of most banks’ internal systems still needs more security. Here are some tips on how bank teams can improve their network security to better secure the gaps.

• Continuous Network Monitoring

The primary thing to do is to respond as if the network has already been compromised. Adopting such a mindset demands the IT team to prioritize the most business-critical assets of the system and use network segmentation as an intelligent strategy. When network segmentation is appropriately done through the creation of network zones, it limits the ability for a hacker to move laterally across a compromised network. Also, network segmentation needs regular updates and configurations, but it can mean the difference between a hacker getting only as far as an employee’s infected computer and helping themselves to the bank’s financial transaction systems.

• Implementing an Enterprise-Wide Security Policy

A well-defined security policy is a crucial road map for any bank IT team to maintain a genuinely adaptive security architecture and stay away from cyber attacks. An enterprise-wide security policy helps with protecting the bank’s systems determine the best way for the network to function with minimal risk. Besides, the security policy must take into consideration all regulatory and enterprise compliance requirements and how to apply timely patches and maintenance to maintain compliance.

• Enforcing Security Policy 

Security policy enforcement is a must-have that defines how the IT team should act at an occurrence of a cyber attack. Doing this might allow banks to comply with regulations and make the network safer. Organizations must also regularly monitor their system for changes to configurations and ensure that these changes are approved and compliant with current policy. In short, it is all a collaborative effort across the enterprise, including network operations, and security operations.

Tailoring a bank’s cybersecurity is never a one-time exercise but always a continuous process. Systems and assets need to be continuously monitored through advanced technologies to identify any loophole that has been generated. Risk management plans need to be up to date, and banks should conduct risk assessments and identify new and emerging risks. Besides, software and hardware must be updated and upgraded as new and improved versions can often address emerging vulnerabilities. Patch management must be of prime importance, and also security patches must be installed and run frequently.

Substantial gaps in cybersecurity will continue to exist due to the increased vulnerability in a bank’s IT security. So it is recommended to have a risk assessment committee that reviews the cybersecurity posture regularly. Indeed, every bank must have a crisis management plan in place to recover from a cyber attack.

Check out: Cyber Security Review Magazine

Check out: Top Fraud And Breach Protection Companies

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