CYBERSECURITY - EMERGING CHALLENGES AND SOLUTIONS FOR FINANCIAL SERVICES COMPANIES

Cybersecurity has always been one of the major concerns for businesses because there are dire consequences if it gets compromised. Companies, which have faced the hassle of data breaches, are vocal about how quickly they lost customer trust, classified information, a significant amount of capital, etc., due to cyberattacks.

Cybercriminals generally attack when there are chaos and uncertainty. This could be why the percentage of cyberattacks on banks has increased up to 238% in the COVID-19 times.

Let's learn about emerging cybersecurity challenges that financial services companies encounter these days. We will also discuss solutions to such challenges. Let's get started:

DDoS attacks via IoT-botnets

Financial services companies generally bring IoT and Big Data together to facilitate data transfers, increase internal communication, make customer information easily accessible, etc., for the sake of accomplishing optimal performance.

Although it's a good move, it allows threat actors to exploit the weak points of IoT to get past the cybersecurity and steal confidential data. Cyberattackers use C&C (command and control) networks to trigger DDoS (Distributed Denial of Service) attacks.

Unfortunately, maximum IoT devices don't have stringent security to deal with such attacks, which is why launching DDoS attacks via botnets is a cakewalk for cybercriminals.

Solution‍

The problem of DDoS attacks driven by IoT botnets can be rectified if finance companies keep their software applications up-to-date and fix security flaws via timely patches. To leave no stones unturned, they can also invest in the advanced botnet detection solution.

Malware injection

Injecting unknown malware is another way cybercriminals use to breach financial services companies' security systems and steal information related to login credentials, customers' contact info, KYC docs, etc., to carry out illegal activities.

Malware usually enters via internet browsers, and the fact that will leave you open-mouthed is maximum antivirus and email security products are not able to detect malware injection.

Solution

‍ Timely patching is the only way to fix endpoint vulnerabilities. It will help to strengthen cybersecurity later on. In addition, log files should be checked closely to find unusual connections.

Partnerships with third-party vendors

.Every company loves cost savings, no matter which sector it belongs to. For the same reason and to enhance customers' experience with other services, financial services companies generally join forces with third-party vendors. Though their intention is good, this move jeopardizes their cybersecurity significantly.

One of those emerging challenges flies under the radar because banks and financial institutions keep investing in their systems to ensure robust security. Still, they often forget to check whether their partner is taking the same course of action or not.

The chances of being hacked increase with the number of entry points you create. Therefore, if the cybersecurity of your partner gets compromised, it is very much possible that you will take the heat as well.

Solution

Since it is not possible to cut ties with all third-party vendors and handle things on your own, you should choose your partner wisely and also discuss what security measures they have been taking to keep hackers at bay openly. Dive deep into backup plans they have made to handle the situation when things go haywire.

Wrapping up

Cybersecurity holds the utmost importance in the business sector, and it is imperative to take the best possible action to keep up a safe distance from hackers. We have discussed the top three emerging challenges related to cybersecurity and how they can be tackled in this article.

We hope you found our blog valuable. To read more blogs like this, visit the Cogent Infotech website.