It’s no secret that financial services institutions grapple with a great deal of complexity. Some are overcoming the security roadblocks that come with emerging technologies like applied and generative AI, some are limited by clunky legacy systems, and many are just trying to strengthen security posture amidst system outages and security breaches.
But the greater challenge many banks, credit unions, and insurance companies face is the same: figuring out how to protect their systems, information, and customers from cyber threats.
One of the best ways to do this is by building cyber resilience and operational continuity. We know that complexity will only increase in cybersecurity. If financial institutions want to continue protecting sensitive customer information, meeting compliance requirements, and maintaining customer trust, then prioritizing cyber resilience is key.
Let’s take a look at some of the obstacles financial institutions face in building resilience and how to solve them.
The challenges financial institutions face in 2024
There’s now more data breaches than ever. And this number will only continue to grow as ransomware attacks keep evolving.
By nature, the information financial institutions collect is highly sensitive – and maintaining the integrity of this data remains difficult. According to Statista, the number of data compromises in the financial services industry in the United States reached 744 in 2023, up from 138 such incidents in 2020.
Financial fraud is only becoming more complex. Whether this means a bad actor is impersonating an employee or attempting to steal the identity of a customer, technologies like generative AI and synthetic identities are making combating fraud even more challenging for financial institutions.
And if fraud leads to a breach, it can lead to a system outage or crucial data loss – which can be catastrophic. One way financial organizations can eliminate blind spots and prevent breaches is to utilize a solution that closes security gaps and helps gain context on what’s in your network already.
Finally, as financial services organizations continue to modernize their systems and offerings, devices like ATMs, customer service kiosks, and other security devices can lead to sprawl. This ever-expanding network of devices, software, and other assets doesn’t just inevitably lead to security gaps and cyber risk, but ultimately puts customers at risk by creating more possible points of entry for cyber criminals.
So how can financial services institutions combat these risks?
Why building cyber resilience is key
Cyber resilience is defined as “the ability to anticipate, withstand, recover from, and adapt to adverse conditions, stresses, attacks, or compromises on systems that use or are enabled by cyber resources.”
And as the cost of cybercrime continues to rise, tactics of cyber criminals become more complex, and service outages become more severe, financial organizations must implement systems and processes to protect their customers, operations, and revenue streams before, during, and after a cyber incident. This might look like using a cybersecurity framework like NIST, CIS Controls®, or ISO.
Complexity is inevitable – but banks must build enough cyber resilience to continue delivering an excellent customer experience at all times.
This is why cyber asset attack surface management (CAASM) solutions like Axonius add so much value to financial institutions. Axonius gives security teams context into networks and security gaps – allowing teams to proactively build resilience before a security incident occurs, which helps prevent disruption to customers and preserve the security of their data.
Axonius also helps financial institutions:
- Maintain a complete device inventory
- Automatically evaluate compliance with regulatory requirements like PCI-DSS and those from the FDIC, NCUS, FFIEC, and NYDFS
- Map relationships between connected assets
- Identify anomalies quickly by tracking trends in device and user behavior
- Enforce remediation actions when needed
Building cyber resilience takes time. But by taking the first steps towards a more resilient cybersecurity approach, you’re that much closer to gaining full context into your architecture and are better positioned to deliver a more trustworthy customer experience.
Interested in learning more about how Axonius supports financial services organizations? Request a demo.
