Category: Financial Services

By Jacob Ideskog, CTO at Curity

The adoption of Open Banking has increased rapidly over recent years and has had a revolutionary impact on financial institutions and on the experience consumers have when interacting with finance products. According to the OBIE 5 million people are now using Open Banking in the UK, as the benefits of the new products and services  begin to be recognized by consumers and businesses alike.

However, the rapid rise of Open Finance has also coincided with concerns about the compliance and security risk that it poses. Curity’s latest report ‘Facilitating the Future of Open Finance’ revealed that over 70% of organizations globally are concerned with security related issues associated with Open Banking. It’s clear that this is a significant hurdle that still needs to be overcome if the adoption of Open Banking is to continue its rise.

The cybersecurity sector has the opportunity and means to alleviate fears and be at the forefront of the adoption of this revolutionary technology.

Addressing and Alleviating Security Concerns

A key concern amongst businesses is the extensive involvement of third-party providers that Open Finance requires and the heightened security risks associated with this, as over 65% of organizations view this as a top security concern. Additionally 62% of organizations have concerns with outdated security systems that don’t support securely sharing data.

However such concerns, whilst understandable, don’t recognize the current capabilities of security solutions available such as Multi-Factor Authentication and the implementation of Government regulations such as PSD2 in the EU. Crucial elements of the Open Banking experience are Application Programming Interfaces (APIs). APIs enable  the efficient exchange of data between applications, services, and customers and can be safely used as long as security and access is properly secured. Acting as the backbone for Open Banking, applications built using APIs with correctly secured access allow backend communication between banks and financial institutions without the need to re-enter or re-share login details every time.

With regard to outdated security systems, investment will be crucial in addressing this issue. Reassuringly, 83% of all organizations surveyed do plan to invest more into Open Banking this year than the previous 12 months. This will not only allow them to update their security systems to meet the standards that Open Banking requires, but will also improve the customer experience and reassure potential users.

The foundations of Open Banking are rooted in providing consumers with choice of financial products and  how they control their finances. Therefore providing a service that is interoperable between brokers, banks and third party financial institutions can be used to better the customer experience, so that all parties are equipped with the information that they need is vital. Furthermore, investment into the deployment of modern authentication methods will be a key aspect of addressing consumer hesitancy due to security concerns and ensuring consumer buy in.

Communication will also play a crucial role, both internally and externally. As mentioned previously many concerns of both financial institutions and consumers are either already accounted for by security systems or have solutions that can be immediately implemented. It’s vital to ensure that education around Open Banking is improved to alleviate fears that in some cases are unfounded amongst businesses and consumers alike.

The role of the cybersecurity industry

Whilst there are clear concerns and issues amongst organizations across the globe, there is undeniably significant momentum behind the adoption of Open Banking.  With almost three quarters of organizations surveyed planning to introduce Open Banking in the next 18 months, cybersecurity professionals’ focus should be on ensuring this transition is as smooth as possible.

This momentum and clear intention from businesses to adopt and invest in Open Banking provides the cyber security sector with a significant opportunity to be at the forefront of this banking revolution. It will be vital for the industry to work closely alongside financial institutions to support this change and mitigate risk at every turn.

We can expect the adoption of Open Banking to continue in the short term, but its long term health and adoption is absolutely dependent on the ability of the industry to address the security concerns and hesitancy that exist.

There’s potential for Open Banking to have a revolutionary impact on the way businesses and consumers approach their finances and more and more institutions are set to incorporate it into their business. However, despite the clear benefits associated with Open Finance, this cannot be done at the expense of individuals’ security and protecting their personal and private data. This is why the cybersecurity sector plays such an important role. If the industry doesn’t effectively mitigate risk and alleviate fears, no matter how much enthusiasm and momentum there is behind Open Banking it will not realize its full potential.

The post Security and the Future of Open Finance: How to Improve Adoption Globally appeared first on Cybersecurity Insiders.

By Simon Eyre, CISO at Drawbridge

Cyber attackers search for any vulnerability they can target and once they find one, they move fast. In under four hours, a ransomware infection can infiltrate a system, making it critical for businesses to act quickly and efficiently. Cyberattacks pose a significant risk to businesses through data breaches – but ransomware magnifies the threat. Ransomware attacks risk demanding the payment of high ransoms with no guarantee of retrieving the stolen information.

As cyber criminals become more sophisticated and their attacks become increasingly successful, businesses must employ more robust strategies to protect themselves. By assessing their current cybersecurity framework, adequately training staff, and implementing the right vulnerability management and risk assessment policies, organizations can bolster their security and reduce the chance of paying a hefty ransom payment.

Employee Cybersecurity Awareness Training  

Ransomware attackers are not picky. They hunt for vulnerabilities and exploit them in any way they can. According to IDC, 37% of organizations globally reported falling victim to some form of a ransomware attack in 2021. Attackers predominantly utilize email phishing scams to lure targets but will also target other communication platforms such as fraudulent phone calls and scam SMS with the hopes of fooling their victims into clicking on malicious links.

Businesses are major targets for cybercriminals. What may appear as a friendly email can be a click away from encrypting the company network – and the ways to retrieve data are limited and often very expensive. In 2021, 83% of businesses reported being fooled by phishing attacks and being tricked into clicking on a link or downloading malware, a dangerous move that could give attackers control over the organization’s infrastructure and give an incentive to demand ransom. It is critical for businesses to ensure that their staff is more than prepared for potential ransomware attacks and well-versed in response plans in case the breach is successful. Rigorous cyber security training can help employees prepare for these encounters and identify suspicious activity through ongoing monitoring practices, ensuring companies always remain one step ahead of attackers.

Cyber awareness training and a prepared incident response plan can also help firms achieve regulatory compliance requirements. Under the U.S. Ransomware Disclosure Act (H.R. 5501), for example, businesses that have fallen victim to ransomware attacks are required to disclose ransom payments to the Department of Homeland Security within 48 hours. In the U.K., NIS Regulations require digital service providers to report cybersecurity incidents to U.K.’s Information Commissioner’s Office (ICO). Failure to comply with requirements can lead to fines and penalties causing monetary damage to the business.

Vulnerability Management  

A firm’s cybersecurity strategy is highly reliant on its vulnerability management policy; a policy that involves continuous monitoring of the environment can help businesses pick up on any vulnerabilities that can be exploited– including any risks associated with having remote workers.

Although I.T. teams may feel their patching procedures are sufficient, sometimes patching procedures that are not up to date can omit software, hardware, and IoT devices that can fall vulnerable to attackers. It’s also important to remember that ransomware attackers don’t work to a schedule – they can strike at any time – so it’s crucial that firms continue to monitor vulnerabilities in real-time, so they can pick up on new vulnerabilities before an attack takes place.

Risk assessments 

Risk assessments further the preventative controls of the vulnerability management by identifying threats from a system, policy, and procedural approach. A comprehensive chart of the gathered data makes it easier to identify high-probability risks that threat actors can exploit. Firms can use these insights to proactivity secure systems with the proper defenses they need to mitigate these potential risks. If your firm does not have the infrastructure to perform these assessments in house, risk assessment providers offer services that form a comprehensive analysis of a business’s data and continuously monitor for potential threat actors that may target vulnerable data.

In much the same way, building resiliency requires an understanding of how data flows through the business and who is processing it (which may be internal or at third parties). It’s important to perform this flow chart exercise before you begin looking at controls to mitigate outages. The mitigations may be technical in nature like redundant systems or signing up alternative Vendors for processing activities.

Investing in the Right Back Up Measures 

Since grade school, we have always been told to back up anything we do not want to lose. What was once a USB or hard drive, is now being redefined by the Cloud. Cloud platforms such as Microsoft 365, Google Workspace, and Amazon AWS offer backup services for businesses to ensure their data remains in a safe place. The all-in-one style of services of these platforms allow for a cost-effective and secure backup of data.

In case a breach does happen, insurance is there for backup. Cybersecurity insurance can lead firms in the right direction when handling security breaches. From an insurance firm, businesses have access to skilled forensic and recovery teams that have the in-house technical skills necessary to address an attack and more importantly, recover from one. Insurance firms offer the proper expertise to guide businesses in the right direction and identify the proper approach to a ransomware attack such as whether they should pay the ransom or not. Businesses can ensure they are choosing the right insurance by looking at their guidelines and Due Diligence Questionnaires before applying. Insurance companies may recommend the use specific cyber frameworks such as Cyber Essentials and NIST CSF to strengthen the security posture of a business.

Avoid Paying the Ransom 

The sad reality is that even after paying the ransom – you aren’t guaranteed your data back. Implementing the proper crisis management and response plans ensures your business endures the least amount of damage as possible if this does occur.

Avoiding paying the ransom, goes beyond a strong cyber resilience program. Understanding the laws and restrictions in place by different jurisdictions can help businesses determine how to approach cyberattacks. Different localities have rules in place banning ransom payment and if done so, companies can face legal action. In October 2020, the United States Office of Foreign Assets Control (OFAC) made it illegal to pay ransom in certain cases. Even if paying the ransom is found to be acceptable by legal standards, businesses must ensure it is the only and best option before handing over such large amounts of money.

Looking Forward 

As the cybersecurity landscape evolves, so do the complexities of the strategies that threat actors use to breach sensitive data. As long as sensitive data exists, so will threat actors looking to collect a ransom, making it even more important for businesses to ensure their cyber resilience strategy is adequate.

The cyber risk, regulatory and threat landscapes continue to evolve, making it even more vital for organizations to strengthen their cybersecurity posture. With the proper proactive measures in place including employee training, vulnerability management, and risk assessments – firms are better positioned to avoid facing a decision on if they should pay the ransom.

The post How Businesses Can Prevent and Mitigate Ransomware Threats appeared first on Cybersecurity Insiders.