Why Financial Services Organizations Need Cyber Security7 Nov
Investment companies, insurers, credit unions and banks are prime targets for cybercriminals looking to steal money or information, disrupt operations, destroy critical infrastructure, or otherwise compromise data-rich financial service organizations. As a decision maker in the financial services industry, it is hard to dodge the very real threat of cyber attacks. Need proof? The financial services sector is the third most vulnerable industry, behind healthcare and manufacturing. Instead of framing the ever-present question of cyber security as an “IF”, every company in the financial services industry should first look at “WHY” the additional protection is so imperative.
THE THREE C’S
Client, Competition, and Control – combined, they are “The Three C’s” that play a role in every cyber security decision in the financial services sector. With 68% of the industry reporting a double figure increase in cyber risk management spending, the time is now to consider these three convincing reasons to implement a cyber security strategy. Clients need to know that their data is going to be protected while having a seamless and worthwhile user experience. Securing an organization sets it apart from the Competition – one of the many indicators that go into the cyber security decision-making process for potential and existing clients. After all, you have control over your organization’s infrastructure but you have no idea whether or not your third party vendors have cyber security measures in place.
- CLIENT: On a personal level, individuals are able to directly control quite a bit when it comes to personal financing choices. From saving credit card information online to investing in a personal security monitoring system, the individual can make these choices and implement at their leisure. When the individual becomes the client at a financial services institution, they are trusting security measures are in place that not only protect their data and finances, but also allows for a streamlined user experience. And, in turn, that streamlined user experience is hinged on the fact that the client has peace of mind knowing that their assets are secure at any point in their journey.Unfortunately, this doesn’t seem to be the case according to the top 20 US commercial banks surveyed: 75% are infected with malware, and 95% were issued a grade of C or worse for existing network security. The financial services industry as a whole needs to pay a greater amount of attention to their cyber security standing – for their clients, past, present, and future, as well as for their own competitive standing in the marketplace.
- COMPETITION: There are a number of ways businesses try to set themselves apart from the competition – advertising campaigns, customer loyalty programs, the list goes on. But the case is made more and more, especially in the financial services sector, that cyber security protection should be a top priority for institutions under that particular umbrella. With 37% of financial services institutions reporting a double figure increase, and11% reporting a rise of 25 – 50%, you want your organization to be on the other side of those statistics. If a potential client is considering two companies, and one has a robust cyber security plan that guarantees their data and assets are kept safe, which of the two do you think will win their business?A financial services firm with cyber security protection indicates that they value the security of their information and that of their clients. As the decision maker, setting yourself apart from the competition with top-notch cyber security protection allows you to reap the benefits of your clients feeling safer and trusting your organization; in other words, added revenue to your bottom line.
- CONTROL: As a decision maker in the financial services industry, not only can you control how much or how little cyber security spending is involved in your bottom line, but you can also determine the third party vendors with which to work. For example, 20% of financial institutions use an email service provider that has known security vulnerabilities. While you may not be able to control said providers cyber security positioning, you are in control of your business, which vendors you utilize, and its fortifications from outside attacks.Here’s another zinger – DDoS attacks can cost companies an average of $40,000 per hour of downtime. If your company is hit by something that debilitating, you would want to have every measure in place that could either stop the attack before it starts, or quash it as it enters the network.
Now that you have the “WHY”, understanding and implementing the “HOW” is the next step toward cyber security protection in the financial services industry. Having a company such as Neovera as your experienced cyber security protection team allows for peace of mind. We have over 15 years of experience in the field and are able to identify risks and outline specific, actionable steps to improve network security. Your company, its data, and critical systems are completely protected as we pinpoint security threats inside and outside of your environment, and implement the necessary measures to prevent breaches and data loss. Bottom line: We protect your business from cyber attacks.