Cybersecurity in the financial services industry is evolving

One of the main targets for cybercriminals and their attacks is the banking industry. It is imperative that the sector's resilience and cyber security capabilities be significantly enhanced. Despite the industry's relatively high degree of cyber security maturity, security flaws always remain and pose a threat to system integrity.

According to Pete Nicoletti, the chief information security officer at Check Point, an attacker only needs to make a mistake once to trigger extremely detrimental, systemic outcomes that might cause havoc in businesses and people's lives all across the world.

Learn about the issues, trends, and suggestions in the financial industry in this article, which can change the way you see and react to the current cyber threat environment.

Industry trends

• A recently released survey states that cyberattacks have affected 65% of financial services sector firms.
  
• A $2 million ransom is typically demanded. The average cost of recovery has increased dramatically from $2.2 million in 2023 to almost $2.6 million.
  
• Since 2017, the amount of extreme losses has increased fourfold to $2.5 billion.
  
  Losses have a significant potential, particularly when compounded to take downstream consequences into consideration.
   

Industry challenges

Recent research indicates that most financial leaders are not confident in their organization's cyber security capabilities.

Eighty percent of executives in financial services firms claim that worries about their company's capacity to fend off a cyberattack prevent them from properly leading future planning initiatives.

The current state of cyber security within financial sector firms differs greatly from their desired state.

Preparing for disruption

Financial sector organizations also need to worry about business continuity in the case of disruption, which is probably more likely than not. This goes beyond cyber security.

The International Monetary Fund states that "while cyber incidents will occur, the financial sector needs the capacity to deliver critical business services during these disruptions."

A significant disturbance, akin to the Colonial Pipeline attack in the financial sector, has the potential to impair confidence in the financial system, cause bank runs, and trigger market selloffs.

The Central Bank of Lesotho suffered disruptions in December 2023 as a result of a cyberattack, which served to highlight the concept. Although there were no monetary losses for the general population, the national payment system was temporarily unable to process interbank transactions.

Industry recommendations

Innovative methods for preventing the newest and most sophisticated cyberattacks are what organizations need. methods that prevent disasters from a distance.

Check Point's AI-driven, cloud-delivered cyber security architecture takes a single, comprehensive approach to protecting networks, endpoints, cloud environments, and mobile devices.

Source: CyberTalk.org

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