Digital technology enables more efficient and effective operations in the financial sector. However, this dependency on technology carries associated financial, legal, and reputational risks. CIOs in financial institutions must prioritize cyber security risks such as data theft, destroyed files, compromised accounts, and degraded systems. Furthermore, IT leaders must balance the benefits of technological advances with risk management challenges. In this article at Forbes, Bob Contri explains how technology can help mitigate systemic risk.
Top Cyber Security Risks in the Banking Sector
Phishing Attacks
According to studies, in just the first six months of 2021, phishing attacks in the financial sector increased by 22%. Attacks targeting financial apps increased by 38%. These trends categorize phishing as one of the financial industry’s most significant cyber security threats.
Ransomware Attacks
The financial sector is an attractive target to ransomware attackers because of the valuable customer information they possess. Reports reveal that ransomware attacks increased by 520% between March and June 2020. Furthermore, attacks increased by 151% in the first six months of 2021.
DDoS Attacks
Between 2019 and 2020, the financial sector experienced a 30% surge in Distributed-Denial-of-Service (DDoS) attacks. Multi-vector DDoS attacks surged by 80% in 2021. These attacks comprised multiple campaigns to overwhelm security teams.
CIOs’ Strategies to Avoid Cyber Security Threats
There are many steps that CIOs in banks and financial institutions can take to secure their systems against cyber security challenges. They include:
- Collaborating with security partners that offer managed services to help provide protection and overcome the talent gap
- Implementing continuous security awareness training programs to ensure employees are up-to-date with the current threat landscape
- Purchasing threat detection and response tools to be proactive in preventing attacks
- Establishing regular customer awareness programs so that they do not share sensitive information or details with cybercriminals
There will always be new security challenges. However, as a CIO, if you have the right foundation, you will be well-prepared to handle anything that lies ahead. To read the original article, click on https://www.forbes.com/sites/deloitte/2022/03/22/how-to-make-sense-of-technology-risk-in-financial-services-look-to-the-digital-networks/?sh=65de628013f3.
