Cybercrimes and cyber breaches are growing exponentially both tact-wise and frequency-wise also. With the growth of technology to enable business efficiency & reducing cost, the attempt of cyber threats towards the BFSI industry is also rising. With the ever-increasing adoption of technology in the BFSI sectors, there is an equal risk of losing data, securities, money, and reputation. In this article, you will know some facts & ways cyber attackers enjoy breaching the business, insurance, and financial sectors.

Significant surge in Cyber threats in the BFSI Industry –

According to some reports, banks and financial institutions experience a cost of around $18.3 million annually per organisation due to cyberattacks. Most criminals target financial data, digital money, Personally Identifiable Information (PII), and digital assets of such BFSI industry and sell them on the dark web. They gain monetary benefits from these assets and receive huge funds from buyers who pay through cryptocurrencies like Bitcoin. That is how the entire buying and selling becomes untraceable.

Other cybercriminals use different applications and vulnerabilities to transfer funds from all hacked financial accounts into their own. That is where these industries need compliance regulations. Such compliances aim at strengthening cyber resilience and preserving consumers’ data and money.

Security Gaps in the BFSI Sectors –

The BFSI industries face daunting challenges despite the explicit security concerns. These challenges are apparently due to the security gaps. Some of them are:

  • The BFSI industry is lacking substantial talent gaps as they do not have adequate security professionals. In contrast, cybercriminals are growing in numbers and are leveraging advanced technologies (such as artificial intelligence, machine learning, automated tools, etc.) as their arsenal.
  • Another reason for the gaps in cybersecurity is the use of too many disparate security tools. Different companies build diverse and siloed security tools that add complexity to the security system. These security applications do not integrate and communicate effectively and thus do not provide accurate security insights. Hence, organisations should research before using them so that these tools can establish seamless and holistic protection.
  • Another gap that creates security chaos is the lack of attention to security fundamentals in the BFSI industries. Frequently, the business and financial sectors lack discipline from the security perspective. Due to the lack of cybersecurity responsibilities and knowledge, employees of many BFSI industries unknowingly let attackers breach their systems. That is why proper security training is essential for every employee within such organisations.
  • Adoption of the latest technology and not following stringent cybersecurity regulations is a gap in the security aspect. These days, BFSI firms are adopting hybrid cloud and leveraging machine learning algorithms. These sectors need to meet new security standards to leverage them.

According to the PSD2 regulations, payment service providers and other BFSI organisations should implement preventive app cloning measures. These digital payment app makers should employ internal vulnerability assessment and penetration testers. They will check the source code before the app goes live. Again, for web applications, organisations should leverage enterprise-grade application firewalls plus dedicated modular hardware firewalls to meet the security level.

Also, it is essential to collaborate with industry experts and peers. The BFSI industry should also improve the incident response and defence mechanism to minimise the risk. While the BFSI industries enjoy the hybrid cloud, it is equally essential to place enterprise cloud security.

Key learnings 

The BFSI industry has plenty of options to improve. The theme that they should opt for is to have the right tools & measures for better security. It is equally essential to have the right partners and third parties for the organisation’s security.

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