What Financial Service Providers Need To Know About Cyber Security

financial service providers cyber security

Today, a wide range of financial institutions need to transfer and store a colossal amount of sensitive information. It is imperative that one has the means to protect clients’ accounts and their data from cyber-criminals. Financial service providers can start by understanding security trends, ensuring that their cyber security policies are leading the field, and minimizing risks. Below is a quick look at the trends that are shaping cyber security in the financial world:

Cyber Crime Appear to be a Normal Occurrence

Unfortunately, cyber crimes are still on the rise. Today’s hacking techniques are amorphous, produce quick results, and highly sophisticated. No matter how much effort IT departments put in, most of them may not be able to compete with cyber criminals.

It’s time to think smart and fight smart. Try treating cyber crimes as household break-ins. Regardless of how many locks you have on the door, these crimes can still occur. You can’t live in a vault forever. That’s why one has to be well-prepared and proactively monitor their financial IT systems. Don’t forget to back up one’s IT systems as well. This way, you have something to fall back on and can recover faster from an attack.

Cultivate a winner’s mindset, i.e. invest in certification training and institute a system of financial IT best practices. It’s a great way to future-proof your business.

Growing Privacy Concerns

The brand and image of a company can be reduced to ashes in the event of a major data breach. When consumers start heading elsewhere, the breached company’s bottom line suffers. That’s why more stringent compliance and regulatory rules may be implemented in the near future.

Cyber attacks are increasing pressure on regulatory agencies in the United States and abroad. In response, more strategic vendor certification programs are designed to educate businesses on how to better detect and address issues before they occur.

Wearable Technology is Now a Target of Hackers

Although wearable technology, e.g. smart watches and high-tech glasses, look stylish, these devices can be used to unleash chaos, should they fall into the wrong hands. These devices may transmit sensitive business and personal data. They must be protected against Trojan horses and other malicious computer programs.

Risk Mitigation is Now Compulsory

Due to many high-profile data breach cases, financial institutions are seeking protection from data breach liabilities. It is a good idea to opt for a single security solution that can coordinate all major types of protection, including anti-malware, anti-spyware, anti-virus, and firewall. Implementing security programs from multiple vendors come with a risk. They may end up working against each other.

One should start teaching his or her financial consultants, accountants, etc. how to thwart cyber crime. For example, the individual should never follow social networking links as well as open email attachments and emails that were sent by unknown or suspicious people.

Anyone who comes in contact with data should follow procedures to prevent leaks. By understanding best practices on data storage and usage, one can avoid mishandling data.

Choose Third-Party Vendors Wisely

Financial institutions can be held accountable for third-party vendors’ practices. Although there is pressure to deliver financial services inexpensively and quickly, one should never circumvent security procedures and/or forgetting to inspect third-party suppliers. Court settlements pertaining to consumer complaints can be costly! Both financial institutions and third-party vendors are encouraged to keep security and audit teams in the loop.