Financial institutions can take the fight to cybercriminals

As a highly targeted sector, financial services organisations are best placed to learn about the threats and display best practice in terms of resisting future cyberattacks, says information technology multinational F5 Networks senior engineer Martin Walshaw.

Eighty per cent of financial services institutions have reported coming under cyberattack within the past two years, which makes it imperative that financial institutions invest in cybersecurity techniques and lead the fight against cybercrime.

“The technology exists to tackle this multifaceted threat landscape. As online banking and digital transactions have become the most prevalent forms of money management and payments, cybersecurity techniques have evolved in line with these advances,” he avers.

Current solutions include malware protection, antiphishing and real-time encryption of data, as well as protection from man-in-the-browser attacks, enabling financial institutions to protect against these vectors of attack.

One particular area the industry can improve on is the sharing of its insights, as, too often, organisations decide not to share information and “sweep incidents under the carpet”, he says.

“While this is understandable, sharing details of hacks and how incidents unfolded will benefit them in the long run, as the industry learns about new forms of cyberattack and best practices faster. Financial organisations that take the lead on this sharing approach will also likely improve customers’ perceptions and be regarded as taking cybersecurity seriously,” explains Walshaw.

Apart from avoiding significant financial losses, there are further incentives to invest in cybersecurity.

Nearly half (48%) of customers in the ‘KPMG Consumer Loss Barometer’ report, released in July, listed cybersecurity attacks as a factor in switching to a different provider. This is particularly the case for Millennials, the future customer core of banks. A recent US study suggested 29% of Generation Y customers would close their account in the event of any security breach, regardless of the circumstances or the bank’s response, he emphasises.

“While this information is daunting, it represents an ample opportunity to solidify trust with customers by demonstrating that security is a strategic imperative and that they are taking every possible precaution,” concludes Walshaw.