The BFSI industry around the globe is revamping its cybersecurity architecture, expecting a continuous spree of data breaches and cyber-attacks. This threat-counter mechanism seeks to minimize overall financial loss, subsequently curtailing reputational damage, regulatory consequence, and general mistrust.
However, in a time when digitization is at its peak, cyber attackers are also expeditiously resorting to newer ways of committing cybercrimes, adopting next-level hacking techniques.
Major Cybersecurity Challenges Faced by BFSI Industry
Following the technological revolution, the BFSI industry has invested in online core banking systems like one-click payment and online purchases to cater to its customers’ growing habit of getting things done on the internet. Parallelly, cybercriminals have also optimized several attacking strategies to destabilize the BFSI sector—aiming phishing attacks and DDoS attacks to steal login credentials and sabotage online transactions. Apart from this, the BFSI industry has faced other prevalent security threats owing to the shift of crucial data to the cloud, making the data more vulnerable to relying on fingerprint and OTP-based login.
Furthermore, to build a robust online transaction system, the BFSI sector has been dependent on third parties, resulting in collaboration with IT companies to launch distinct payment options such as mobile wallets. However, huge misalignments with nascent Fintech organizations while mainstreaming the app-based payment protocol have left the BFSI sector prone to cyberattacks. Many a time, this also happens due to poor implementation of security guidelines. Additionally, all the crucial financial data and critical personal information that the BSFI sector deals with has led to it being always targeted by advanced hacking groups.
How Robust Cybersecurity Frameworks Aid the BFSI Industry to Mitigate Threats
Even without any massive technological overhaul, the BFSI industry can efficiently protect critical data from getting accessed by cybercriminals, by implementing several multi-oriented cybersecurity tools. Apart from promising to neutralize a wide range of cyberattacks, these highly-resilient and agile threat-monitoring tools can also be effective in providing 24×7 scrutiny as well as removing vulnerabilities.
Here’s how BFSI organizations can reinforce their cybersecurity safeguards:
- Dynamic Threat Detection: Enhancing proactive threat detection paves the way for the safety, security, and identification of vulnerabilities resulting from third-party involvement.
- Authentication Based Login: Implementing secured authentication-based login— especially in app-based payment systems—in compliance with government-mandated laws like GDPR, HIPPA, GLBA, etc., can further protect core banking systems from attacks.
- Data Encryption for Customer Privacy: Incorporating high-level data encryption services as a security feature is instrumental in customers’ data protection.
- Collaborative Security Services: Collaborating with multiple security services, the BFSI industry can identify malware, monitor, and detect malfunctioning codes, and neutralize them accordingly.
The Next Steps:
In recent times, owing to the high number of data breach incidents, BFSI institutes have been under heavy pressure and surveillance to have appropriate security mechanisms for protecting user data. Wherever in the world, considerable investments are being made towards the infrastructure or new projects, associated financial institutes are leaving no leaf unturned in terms of installing advanced security systems.
By leveraging the latest tools and technologies in data security, along with upskilling employees in cybersecurity practices, the BFSI sector can look forward to offering safe and secure Fintech services to its customers.