As online and at-home banking options become more accessible, more online activity increases the risk of theft. Since 2021, IBM reported that the average cost of a breach rose from $4.24 million to $4.35 million.
The finance industry poses a lucrative target for cybercriminals seeking credit card information or ransom payments. These attacks can lead to significant, widescale financial and reputational losses, so banks are legally required to maintain security controls that protect the confidentiality, integrity, and availability (CIA) of client data. Mature security programs manage these controls in a holistic and dynamic security program that evolves as new attack vectors emerge in the global cybersecurity landscape.
What are the threats and requirements for banks in 2023? Shore up your cybersecurity defenses to prevent losses sustained by wire fraud, ransomware, regulatory complications, and identity theft. ProCircular’s expert analysts and consultants break down the top three tips for banks preparing for tomorrow’s threats.
Industry-wide Requirements and Recommendations (FFIEC)
The Federal Financial Institutions Examination Council (FFIEC) is the regulatory agency that prescribes uniform principles and standards for financial institutions. The Cybersecurity and Critical Infrastructure subgroup have been working since 2013 to clarify supervisory expectations, increase awareness of cybersecurity risks, and assess and mitigate the risks facing their institutions. Most insurance companies will require companies to pass a compliance audit to obtain coverage.
Recently, federal agencies and insurance companies have been working to converge their requirements to standardize cybersecurity requirements for banks with requirements for other industries. While this simplifies the process for insurance agencies, the updated cybersecurity requirements might over or understate risks that are specific to your industry. With this in mind, it’s important to remember that compliance does not necessarily mean security. The mandatory regulations provide a layer of protection, but there are likely insecure areas in your organization that require additional coverage.
The following three tips will help you understand and manage the cybersecurity threats to banks in 2023.
1. Identify Your Compliance Gaps – Risk Assessment/Gap Analysis
Cybersecurity for banks in 2023 should include a risk assessment to help your team identify weak security policies and resolve them to increase resilience to attacks. These assessments create a complete view of your organization’s risks and can be customized and tailored to find compliance gaps that help you prepare for an FFIEC audit. The cybersecurity regulations for banks are designed to show a pattern of consistent investment in security. For this reason, it’s important to start planning as early as possible.
Time is of the essence for the banking industry because understanding your organization’s compliance gaps does not eliminate the chance of a breach occurring. Most cybersecurity requirements for banks include an incident response (IR) plan, but your plans must stay specific to your organization’s individual risks and responsibilities. Because of this, an IR plan that goes hand-in-hand with your risk assessment is key to staying proactive in 2023.
2. Train your end users – User Awareness Training/Escape Room
According to Verizon’s 2022 Data Breach Investigations Report, human error accounted for 82% of the year’s breaches. In any industry, an organization’s end users can act as a cybersecurity vulnerability or asset, depending on their habits and behavior.
Educating your team on cyber vulnerabilities is a great way to build better cyber practices. There is a two-fold benefit to educating your staff; not only do they avoid risky behavior, but they’re able to identify and report security issues before they become full breaches. Additionally, there is no room for insecure practices regarding client financial data.
Educating your staff can also promote team-building behavior in exciting ways. ProCircular’s Escape Room Training, for example, is a hands-on engagement in which groups of end-users work to solve the multi-phase puzzle and increase their security awareness. Our escape room exercise leaves a lasting impression on your team as they work together to understand common end-user mistakes.
3. Get Eyes on Your Network – SIEM
A managed Security Information and Event Management (SIEM) program gives you 24/7 “eyes-on-glass” visibility into your network through software, appliances, and/or managed services. At ProCircular, our specialized cybersecurity engineers watch logs from several systems consolidated on one screen. From there, they identify and investigate anomalies on the network to stop threat vectors in their tracks.
SIEM systems vary across organizations, but all serve the purpose of delivering real-time solutions to incidents, both before they occur and as they appear.
Is Your Bank Thinking About Cybersecurity Planning In 2023? Talk To A ProCircular Expert About Our Cybersecurity Services In Minnesota & Iowa!
If you’re looking for accomplished experts to support your security posture, trust ProCircular. Proudly serving Iowa, Minnesota, and the entire Midwest, ProCircular is among the top cybersecurity companies in the nation. Our team can provide you with technical control and support, procedural development, and timely responses to whatever comes your way.