BFSI firms appear to target cyber assaults since they handle significant volumes of sensitive data and manage large cash balances. The industry has accepted a few noteworthy trends and is now working on new solutions to mitigate possible concerns. Here’s a glimpse at how far the industry has gone.
After the outbreak of COVID-19, the importance of cybersecurity has increased. Experts estimate that financial institutions are 300 times more likely than other industries to be targeted by cybercriminals.
“Given the portion of sensitive data that the BFSI industry handles, it has remained a top target for cybercriminals in recent years.” Prioritising and executing cybersecurity measures has become a significant concern for organisations in the BFSI market. It has become an apparent goldmine for hackers,” said Yashoraj Tyagi, CASHe’s Chief Business Officer and Chief Technology Officer.
Rising Risks In The BFSI Sector
Increasing Risks in the Financial Services Industry (BFSI) Cybercriminals are constantly attacking the financial sector, one of the most important industry sectors. Financial institutions that collect and handle consumer data, especially those that provide financial services to retail and commercial customers, are a clear target. The data from our most recent BFSI ebook backs this up. According to VMware’s Modern Bank Heists research, we have seen a 238 per cent increase in cyberattacks on financial sector organisations since the COVID-19 pandemic. Among others, many DDoS attacks are among these attacks, which are typically accompanied by ransomware demands and extortion. As a result, it’s no surprise that 39% of financial industry executives consider the overall network security threat to BFSI sector organisations has become extremely serious. While the global financial services sector is well-versed in identifying methods to increase efficiency and meet user demand, the rush to adopt new technologies has occasionally resulted in unwelcome security risks. The growing effect of complicated technology and integration with third-party systems has resulted in a more excellent attack surface and a higher level of sophistication in attacks. Nowadays, a solid cybersecurity posture entails more than protecting sensitive data and systems from malicious external attacks. Identity protection increases data privacy, and better vulnerability management is part of it.
Cybersecurity Threats For BFSI
Ransomware has been a prominent issue among the various cybersecurity risks for several years. Ransomware is a sort of cybercrime in which files are encrypted, users are locked out, and the perpetrators demand money to regain access to the system. One of the concerns is social engineering, in which people are duped into handing up critical information and credentials. Phishing is a frequent attack that fits under this category.
According to Tyagi, cybercriminals are no longer only interested in making money but also in causing disruption, destroying data, and destroying reputations. Cloud-based cyber-attacks, continuous hazards from remote work, mobile banking Trojans, and the rise of identity thefts are among the rising threats with the onset of newer technologies and increased digital use.
Current Cybersecurity Trends In The Financial Services Industry
Artificial Intelligence for fraud prevention is a significant trend we see in the future. Fraud detection AI systems analyse company and customer data to detect client risks and weaknesses based on the findings of an inquiry. Another factor is the growing trustworthiness of block chain systems, which have security safeguards that make hacking the system extremely difficult.
The adoption of zero-trust has also become a priority for businesses. This methodology can identify high-value assets and data on a network while also protecting data beyond the capabilities of existing cybersecurity solutions. To implement their digital transformation strategy and incorporate cloud-based tools and services, BFSI organisations are now transitioning to better cloud management software solutions.
Few Counter-Measures To These Cyber-Threats
One method to combat cybersecurity risks, according to Tyagi, is to move toward integrated security, where all components work and communicate together.
Another option to combat such threats is to use Machine Learning and big data analytics to store and analyse a large amount of security data in real-time while also updating antivirus and anti-malware apps, according to Tyagi.
Furthermore, Tyagi emphasised that consumers should be made aware of the need not to give their banking credentials to anybody and report any unusual developments in their transactions or bank accounts to the cybersecurity cell as soon as possible.