How to protect your business from cyber attacks?
09 October | 400 Seconds of reading
Vetor editado do Storyset. 2021 por Storyset
In today's world, financial institutions play a crucial role in the global economy, facilitating monetary transactions, resource allocation, and investments, becoming a driving force behind the growth of personal, corporate, and even national wealth.
With the increasing digitization of the financial sector, the importance of robust and secure systems cannot be underestimated.
Therefore, these are imperative aspects to be observed in the decisions of managers of these financial institutions, given the depth and scope of how they affect not only the individual stability of each organization but also their repercussions on the entire financial system and customer trust.
I. Rising Cyber Threats
The landscape of cyber threats is constantly evolving, and financial institutions are among the primary targets.
We won't delve into the numbers and publicly known cases of security incidents that have occurred in banks around the world and their devastating impacts here, but it is important to be aware that, in terms of the absolute quantity of events, the vast majority of cases are never disclosed and tend to be resolved confidentially by institutions, given the image, liquidity, and regulatory consequences that exposing this information would impose on their victims. Hackers, cybercriminals, and nation-states seek to exploit vulnerabilities in financial systems for personal or political gain.
The leakage of confidential information, theft of customer data, and ransomware attacks are just a few examples of the threats faced by the sector, which has seen the number of incidents increase significantly since the onset of the COVID-19 pandemic. Due to the association between the sector's significance and the high risks to which these organizations are exposed, many regulatory actions have been globally directed towards requiring financial institutions to enhance their cybersecurity measures, penalizing non-compliance severely in financial and even criminal dimensions.
A recent study by one of the leading IT services companies concluded that the financial impact of information security incidents reaches its highest figures precisely in this market segment, as a result of regulatory sanctions, legal compensation, and reputation damage. This scenario has led financial institutions to increase investments in cybersecurity to protect their systems and data while fostering collaboration between institutions and their IT suppliers to share information on cyber threats and best security practices.
II. Protection of Financial Assets
Financial institutions manage trillions of dollars in financial assets, many of which belong to customers. The security of systems is essential to protect these assets against catastrophic losses. A robust and secure system is designed to withstand attacks and protect customer funds, ensuring the continuity of operations even in adverse situations.
III. Maintaining Customer Trust
Customer trust is one of the most valuable assets of a financial institution. When customers trust that their data and money are secure, they are more likely to do business with the institution. However, exposure to data breaches or other vulnerabilities can seriously undermine this trust. Robust and secure systems help maintain this trust by protecting sensitive information and preventing disruptions in financial services.
IV. Compliance with Regulations
Financial institutions are subject to stringent regulations worldwide, designed to ensure financial stability and protect customer interests. Most of these regulations require institutions to implement robust security measures to protect data and assets. Non-compliance can result in significant fines and reputational damage. Therefore, secure systems are essential for regulatory compliance.
V. Efficient Incident Response
No system is 100% invulnerable, which is why financial institutions must also invest in incident response plans. Having robust systems allows for the rapid detection and response to threats, minimizing damage and downtime. The ability to recover quickly from security incidents is crucial for maintaining customer trust and protecting financial assets.
VI. Responsible Innovation
The pursuit of innovation is a distinctive feature of successful financial institutions. However, innovation must be balanced with security. Robust systems not only protect against threats but also allow financial institutions to experiment with new technologies and services responsibly, mitigating associated risks.
The importance of robust and secure systems in financial institutions is indisputable. They play a critical role in protecting financial assets, maintaining customer trust, complying with regulations, and enabling responsible innovation. In an increasingly digital and connected world, financial institutions that neglect the security of their systems risk facing severe consequences. Therefore, investing in cybersecurity and robust systems should be a priority for all financial institutions, aiming to ensure not only their own success but also the stability of the financial system as a whole.
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