5 Strategies to Boost Cybersecurity in Financial Services

Cybersecurity is a chief concern in every industry, but especially in financial services, given the incredible amount of financial and personal data. A successful cyberattack can be very costly to banks and credits unions — not just financially but also the potential reputation impact.

As cybercriminals get more sophisticated, it’s crucial financial institutions have protections in place to safeguard their valuable data. Explore five strategies banks and credit unions should consider to enhance cybersecurity.

Consider 5 strategies to boost cybersecurity in financial services

1. Ransomware tactics

Ransomware continues to be a major concern for financial institutions. Ransomware encrypts organizations’ files, locking down systems and data until the ransom is paid. In some cases, cybercriminals make the stolen information public and/or sell it on the dark web.

Ransomware attacks can’t be completely prevented by a single strategy, but there are several tactics that may mitigate risks:

• Mandating multi-factor authentication (MFA) — MFA requires users to have two or more authentication methods before permitting system access.
• Keep computer security systems up to date — Routinely check for updates and patches and install them as soon as they are available.
• Employee cybersecurity training — Cybersecurity training teaches employees about current cyberattack strategies and how to respond if they’re targeted.

2. Backup testing

Backup testing helps verify an organization’s backup systems are working correctly so data can be recovered in the event of a cyberattack. Some banks and credit unions aren’t performing full backup tests due to limited resources and are instead undertaking partial testing or just testing critical systems.

While more involved, conducting a full backup test is highly recommended to assess if data can be recovered in a secure and timely manner. Having adequate safeguards can help reduce business disruptions and any reputation risks.

3. Vendor management

Cybersecurity protection strategy extends beyond your own company’s efforts. Many financial services organizations are increasingly using FinTech, increasing the level of dependencies related to data security.

If you contract with third parties (and don’t forget fourth parties, i.e., subservice organizations), you should assess how they host, process, and transmit data. Review their cybersecurity prevention efforts and any evaluations of their security posture and incident response planning.

4. Compliance with payment card industry standards

The latest version of the payment card industry data security standards (PCI DSS) provide an updated framework for evaluating people, processes, and technologies associated with cardholder data. Although not a regulatory requirement, the standards help management adhere to fiduciary responsibilities based on contracts and require an assessment.

Vendors have begun to hold financial institutions accountable, requiring documentation to provide evidence of compliance. Cardholder environment includes storage (including data at rest), process, and transmission. Based on overall volume of transactions, there are various compliance requirements to consider. Qualified consultants can help institutions evaluate readiness with established standards.

5. Risk appetite evaluation

How much risk is your bank willing to take on? That question is at the heart of a risk appetite evaluation — determining your organization’s acceptable level of risk and what security resources should be undertaken for protection. Determining your institution’s risk appetite can help you make informed decisions about risk management.