Cyber Security trends to impact banks and financial institutions in 2017

The dust from the WikiLeaks and Cablegate scandal hasn’t’ settled completely and the world is subject to some more uncertainty when President Trump announced that there will new regulations on cyber security. With increased collaboration between financial organizations, there is a constant flow of information outside the firewalls of the company server.

Is the current security infrastructure sufficient to fend away the constant onslaught of fraudsters? Here are a few trends that can be seen in 2017:

  1. Improvement in regulations: Cyber security is a fast moving dynamic field and regulations and rules need to be constantly updated to suit the present circumstances. The current regulations are slow and outdated; no match for an enemy who is fast, furious and crafty. If the regulations are not modified frequently the banks and financial institutions will live in a false sense of security which can be shattered anytime. Luckily software vendors like the HBSwiss make sure your personal data won’t be stolen even without a up-to-date regulations.
  2. Greater demand for cyber security expertise: Hackers are not restricting themselves to just data theft anymore; they have taken a step further and are indulging in data manipulation. This mode of violation questions the integrity of data itself. And sadly there is a severe crunch of cyber skills in all financial institutions making them vulnerable to cyber crime. This will see an increase in demand for personnel adept in cyber security.
  3. The emergence of CCO: Chief Cybercrime Officer is the new go-to person laden with the responsibility of dealing with cyber threats on a day-to-day basis. Banks and financial institutions have already started advertising for such a post as they feel the need to tackle the problem directly. The CCO will ensure that the institute is capable of warding off any cyber attack and financial breaches. He will be the link between the company and the board of directors.
  4. Improving the security of third party vendors: Often security breaches happen at the weakest links, in this case, third party vendors who do not have high-level cyber security. In 2017, all financial institutes and banks must prioritize the security level in their vendors. They must assess the security measures and tighten all the weak links and loopholes to prevent exposure to cyber attack.
  5. Ransomware: Last but definitely not the least is the looming threat of growing ransomware. Hackers encrypt data and hold institutions to ransom for huge amounts of money. According to Trend Micro, a global leader in cyber security solutions, ransomware is estimated to grow by 25% in 2017.

The growing power of ransomware means that hackers can target any IoT devices, PoS systems, and ATMs. This will lead to disrepute and loss of face for any institute or bank, in addition to the severe loss incurred in ransom.

Solution

The year ahead is nothing short of a war as far as the banks and financial institutions are concerned if they don’t want to see a repeat of Cablegate kind of scandal. The Trump regime is all set to unleash its regulations on cyber security in banks and all financial organizations. These institutes have to pull up their socks and face the battle head-on.

Along with looking for innovative solutions, they have to focus on recruiting the right staff who come loaded with an arsenal that will take the battle to the enemy’s den. The best way to begin would be to appoint a chief cyber crime officer who will bail the company in tough times and will prepare it for all kinds of malware, phishing, and other antiviruses.