The estimated cost of security lapses in the financial sector amounts to around $100 to $300 billion, according to the International Monetary Fund. With such a staggering potential loss, it’s no wonder that physical security and cyber security are of paramount importance. The concern for increased security in the financial sector is now strongly felt in American politics, and for good reason.
Democrat Congressmen’s Call
Both Emanuel Cleaver II and Gregory Meeks have written to various federal financial agencies to voice their stern requests for increased cyber and physical defenses. Their requests were prompted by the risk of Iranian security threats following the increased tensions with Iran. Their concerns are not unfounded, as both the FBI and the Department of Home Security have issued warnings regarding Iranian-backed attacks over recent weeks. If even one major bank in the US is breached, it may comprise the entirety of the American financial sector. As such, both Congressmen have given the notice to require federal financial bodies to propose tailored security strategies by March 2020. So if there is ever a time to see growth in the security arm of the finance sector, it would be in the coming months.
The Future Of Security In The Financial Sector
To date, encryption is generally considered to be the strongest weapon wielded by the finance sector to combat cyber threats, according to Stephen Fabel of Tech Radar. To meet this, however, criminals have resorted to accessing physical locations to circumvent encryption data and accumulate consumer data. A convergence of both physical and cyber security in the financial sector can be obtained through a thorough security assessment, according to DSC, who specialize in security systems in Houston. They say that applying both physical security measures alongside any new cyber security protocols lessens the chances of a breach by outside and internal sources. In other areas, experts suggest decentralizing the AI security of finance bodies to limit the penetration of hackers.
Common Breaching Methods And Security Strategies
Cyber and physical criminals are not slowing down their attempts to gain access to the financial sector and its sensitive data. Roughly 94% of all attacks on the finance sector make use of both forms of cyber and physical attempts, according to Akamai’s 2019 Internet Report. For example, stealing the identity of consumers uses both online phishing and physical card skimming methods. For large financial entities like banks, DDoS attacks to hit both assets and reputations are coupled with a human error within the organization itself. These common breaching methods should be considered carefully by existing financial organizations and factored into their security strategies. Doing so should give those involved a clear picture of their vulnerabilities and possible strengths, says Akamai.
With both private and commercial financial sectors moving toward digital solutions, it has become increasingly clear that there will be those that seek to exploit new and old vulnerabilities. As politicians are realizing that increased security is absolutely needed, it would not be far-fetched to say that their call to action will actually be heeded. It would be interesting to note what other security improvements will further secure the financial sector as a whole.