If you run a financial business, be it a bank, accounting firm, tax service, etc, you know the importance of data security. Although different from data protection, data security is paramount to mitigating the risk of cyber-attacks and safeguarding your clients' data.
If you're just dipping your toes into cybersecurity, you might worry that your business has existing vulnerabilities. These security gaps could include:
- Open ports
- Weak or no security tools
- Old passwords and outdated credentials
- Old user accounts from past employees or clients
- Outdated permissions settings
- Unpatched software vulnerable to attackers
With these in mind, read on to see how to tell if your business could be susceptible to attackers.
Why is Cybersecurity Crucial for the Financial Sector?
Financial businesses have been no stranger to cybersecurity in the last several decades. There are many reasons why cybersecurity tools and best practices are a necessity for this sector. Some reasons for better cybersecurity in finance are data security regulations, riskier breaches, and targeted attacks on these companies.
Data Security Compliance Concerns
Regulations such as the Gramm-Leach-Bliley Act of 1999 set specific requirements for how to handle sensitive data and report breaches. There no overarching federal data privacy law as of 2024. However, almost half of US states have enacted consumer data privacy laws.
For example, in New York State, businesses are subject to the NY SHIELD Act, which sets mandatory requirements for breach notification. On top of this, the FTC Safeguards Rule applies to businesses offering "financial products or services". This includes businesses like non-bank mortgage lenders, real estate appraisers, debt collectors, tax return preparers, and even car dealerships.
As regulations like these get stricter with higher prices to pay for breaches, it's more important than ever to secure your financial business.
Higher Stakes & Bigger Consequences for Financial Institutions
Data privacy laws are even stricter for businesses that deal with sensitive data like healthcare and finance. There are special requirements within these regulations that define how these businesses must protect data and notify necessary parties of any breaches.
The higher data privacy standards in finance are due to the severity of damages breaches can cause. When hackers steal data like credit card information, social security cards, and financial records, they often post them on dark web forums for sale. The business of cybercrime has grown to a point where there is a thriving market for stolen credentials.
Another aspect that heightens the risks involved in financial data breaches is the possibility of your bank becoming insolvent. This may seem unlikely, but it has happened and continues to happen to unsuspecting banks. One bank closed its doors not long after a senior executive fell victim to a pig butchering scam and wired bank funds to cybercriminals.
This illustrates the importance of training employees -- even the most senior ones -- on common social engineering scams such as phishing, phone scams(vishing), text scams (smishing), and more. Read about these attack methods and more in our blog: What is Social Engineering? Attacks, Techniques, and Ways to Avoid It
Hackers Targeting Financial Services Companies
Unsurprisingly, banks and other types of financial institutions are one of the primary targets for hackers. There is also a higher rate of state-sponsored attacks from foreign entities against the financial sector.
Many surprising motives of hackers exist, and in today's climate, international political motivations are among the most common. To read more about how cybercriminals choose their victims and different types fo hackers, read our blog: The Surprising Motives and Ethics of Hacking (usherwood.com)
How Is the Financial Services Industry Battling Cyber Attacks?
If you feel confused or disoriented by the amount of cybersecurity protections necessary to fend off attackers, remember you have many options. You don't need to become a cybersecurity expert overnight, and you don't even need to hire an expensive IT specialist for your business.
In fact, outsourced IT services for financial services have become a popular solution to cybersecurity on a budget. For example, IT services for accounting firms are nimble enough to support small teams with the resources to scale IT in growing businesses.
Not only are financial businesses investing in managed services, but they're also investing in basic protections that can slow attackers down.
How Can Financial Companies Assess Their Cyber Risks?
One step you can take today to find out if your business has existing vulnerabilities is to invest in a paid network assessment. These assessments are relatively inexpensive and can give you a jumping-off point to know how to secure any gaps.
There are many specialized IT services for banks, accounting, tax preparers, and other financial businesses that offer network assessments. These support teams can help you eliminate cybersecurity flaws in your network now, and manage compliance long-term if you choose to partner with them.
To learn more about what network assessments can tell you about your network, read our blog: Network Assessments: What Insights Do They Reveal?
How to Find IT Support for Financial Services
If you're looking to upgrade your cybersecurity strategy with the help of experienced IT professionals, it's important to find the right service. Look for providers with a track record of working with financial services firms, and years of experience in information security.
Whether you run a retail bank or small accounting firm, cybersecurity is no longer an optional nice-t0-have. If you're ready to jump into cybersecurity or just learn about a network assessment, click the button below to get in touch with an IT expert.
