According to research published last spring, cybersecurity issues across the global financial services industry are growing not only in the number of incidents but in size, scale, and sophistication. The report, published by Intsights, a cyber threat intelligence company, showed that 25 percent of all malware attacks in the world hit banks and other financial institutions, more than any other kind of industry.
Financial institutions remain among the most targeted businesses by hackers and data thieves. This should alarm banks and other financial service companies, highlighting the need to protect their customers’ accounts and data, and protecting their own interests with comprehensive coverage, such as cyber liability insurance.
Cybercrime is only going to grow more sophisticated and be more of a factor in how companies purchase cyber liability insurance and other coverage, as well as how they rethink the way they aim to protect their customers.
The Cost of Cybercrime
Cybercrimes can cost banks more to recover from than businesses in any other type of industry. Breaches against banks have increased by more than 300 percent since 2014, costing the industry as a whole more than $1 trillion each year. What’s more, banks are targeted by hackers by a margin of 300-1 compared to other industries.
Shifting regulations are presenting major challenges when it comes to bank security. With today’s digital landscape taking over and altering the way people use their banks, with technologies like artificial intelligence and mobile banking becoming more influential in the space, there is more flexibility for not only the customer but the criminal. The main goal for banks is to continue to refine their digital banking offerings while preventing fraud and data breaches, something that’s already proving to be difficult.
Criminals are able to quickly adapt to challenges and take on new technologies in order to discover ways to exploit vulnerabilities in a bank’s network. Banks, on the other hand, have to carefully maneuver through rules and regulations.
Inside Jobs
Another component of cybersecurity that banks have to be on the lookout for are internal threats. Most banks are protected well enough from external threats, but it’s the internal issues that pose the most ambiguous risk. These threats can take shape in many different ways, including careless employees to vulnerabilities in software. Banks are starting to take measures to educate their employees on the importance of data hygiene practices and cybersecurity protocol in order to limit exposure, but there will always be room for errors to take place.
Bank Security In 2020
Banks can take a structured approach to increase cybersecurity and limit exposure to cyber threats. While no plan is perfect and threats can evolve from one day to the next, having a foundation and outline of how to avoid risks and threats is a good starting point.
There should be accountability from the top down in a bank or financial institution around cybersecurity. Whether something is authorized by the CFO or a hired employee, a financial transaction should go through a series of verifications before it’s approved.
For everyday business operations, there should be tailored training programs implemented in order to educate employees on the threats that face them with every email, communication, or transaction. A successful training program around cybersecurity should present information on the subject in many ways and cater to all learning styles. From real-life situations to boilerplate information, there are many ways to get information across.
About Financial Guaranty Insurance Brokers
Since 1983, Financial Guaranty Insurance Brokers has distinguished itself as a provider of Professional Liability, Cyber Liability, and Crime insurance products for entities of all types. To receive timely, personalized service from a knowledgeable and experienced staff, call us today at (626) 793-3330 to speak with one of our professionals.