Cyberattacks and data breaches in financial services firms are more common than in any other industry. In fact, financial services firms fall victim to cybersecurity attacks 300 times more frequently than businesses in other industries and the rate of breaches in the industry has tripled over the past five years. Cyberattacks also cost financial services firms more to address than companies in other industries, at about $18 million per firm (vs. $12 million in other industries).
There’s an anecdote that there are two kinds of firms: those that have been hacked by cybercriminals, and those that will be hacked.
While the inevitability of a cyber-incident is concerning, numerous steps can be taken to strengthen defenses, protect critical data, and construct early alert capabilities to mitigate breaches.
Beyond toughening its basic network and server infrastructure, a firm must have its chief information security officer (CISO) involve software engineers, database architects, and network management in an overarching and continuous program of education and vigilance. The CISO will also need to schedule independent security audits and penetration tests to mitigate possible exposures before they can be exploited.
Additionally, as social engineering attacks (spear phishing) fast become the hacker’s method of choice for breaching a firm’s security, a program of recurring education and testing for all employees is warranted.
To learn more about security measures financial services firms can implement in order to mitigate the risk of cyberattacks, you can fill out the form below or click here.