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Financial Institutions Are Vulnerable to Cyber Attacks | @CloudExpo #Cloud #Cybersecurity
The introduction of nascent technologies to improve financial access is also accompanied by increased vulnerability
By: Yuri Frayman
Sep. 21, 2016 05:00 PM
Financial Institutions are Vulnerable to Cyber Attack as the Increase in Technologies Improves
It is impossible to go outside and not notice banks offering consumers new ways to save, send, spend, and access their money at a bank. This trend-to ease access to funds – extends well beyond the retail banking sector and is equally prevalent among investment banks, private banks, hedge funds, mutual funds, ETFs and just about any financial institution, large or small. It is arguably the single most compelling commercial driver in the financial services sector. Financial institutions compete aggressively and continuously for dominance in this regard and technology is, in all cases, the single most important differentiator across institution, customer, and geography.
Unfortunately the introduction of nascent technologies to improve financial access is also accompanied by increased vulnerability to the very currency and associated details at the heart of the financial services industry. This is the cost of an increasingly open marketplace for financial services and a dynamic that is only further complicated by the growing array of devices and techniques customized for each device to engage in financial transactions. Fortunately there are technologies and strategies available that can be embedded within the security infrastructure of financial institutions to defensively and prospectively detect and eliminate threats, which vary in scope and nature.
General Scope of Threat
At Risk Sub-Sectors
Financial institutions involved in e-commerce are also soft targets for cyber attacks. Mobile transaction volume increased more than 200% between 2014 and 2015 and is estimated to maintain that growth trajectory as more mobile devices, with greater sophistication and applications tied to financial institutions, enter the e-commerce system. With multiple technologies and institutions collaborating to enable e-commerce, the complexion of any approach to cyber security must be multi-layered to enable businesses to detect and prevent various attacks such as malware, device spoofing, and mobile bot attacks.
Methods and Strategies
For large institutions the risks are too considerable and far-reaching to implement anything short of the most comprehensive systems available in the market. Speed, synchronization and uniformity should be paramount considerations and, fortunately, there are technologies available that accomplish these objectives while retaining a degree of malleability to adjust with evolving threats and risk points.
For smaller firms the solutions that are being implemented tend to be more patchwork (though even larger financial institutions have similar ‘band-aid' approaches). "Cyber-as-a-service" firms are increasingly common service providers for smaller and medium sized companies as well as concentrated on key risk areas through the utilization of dedicated computers for sensitive transactions, which can be monitored for unusual activity. These methods, while often effective defensively, lack the key elements of speed and comprehensiveness; they are reactionary in nature, but lack the embedded and dynamic technical characteristics to be prospective in their approach to risk.
In devising a cyber attack strategy financial institutions should be mindful of four dynamics:
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