Information security is a complex issue for any business, but it is especially important to consider in the financial services industry. As firms handle personal data from clients, companies must ensure that their systems are secure and reliable. Awareness of information security concerns in the financial services industry is vital so that steps can be taken to protect firms and their customer information.
Here, we look at the top information security management concerns in the financial services industry you should take note of.
Data breaches
One of the top concerns for financial institutions is data breaches. Hackers are always looking for weaknesses in systems and networks, and with the amount of customer data stored by many financial institutions, there’s plenty of incentive for malicious actors to try and gain access.
To prevent this, firms should consider investing in cybersecurity technologies such as firewalls, antivirus software, and two-factor authentication systems. Firms should also ensure that all staff members understand how to spot potential threats and report them immediately should they find anything suspicious.
Vulnerability Management
Asset discovery and inventory
Keeping track of devices, software, servers, and more
Vulnerability scanning
Conducting tests against systems and networks, looking for common weaknesses or flaws
Patch management
Keeping computer systems up to date with the latest security patches
Security configuration management
Helps to ensure that devices are configured in a secure manner, that changes to device security settings are tracked and approved, and that systems are compliant with security policies
Penetration testing
Assists in finding and exploiting vulnerabilities in computer systems and networks
Threat intelligence
Threat protection software provides the ability to track, monitor and analyse potential threats
Remediations
Prioritising vulnerabilities, identifying appropriate next steps, and ensuring that the vulnerability or misconfiguration is properly addressed.
It’s important for businesses to have a vulnerability management program in place to help reduce the chances of a successful attack on a system or network, the goal being to reduce the organisation’s overall risk exposure by mitigating as many vulnerabilities as possible.
Third-Party access
Many financial institutions must provide third-party vendors with access to their networks or systems to complete tasks, provide services or reduce overhead costs. While this can be beneficial, it also increases the risk of an access breach as attackers may exploit third-party systems to gain access throughout the organisation, putting your business’ information and data at risk.
To mitigate this, firms should ensure that third party access fulfils key security requirements which include:
- Managing third party credentials with regular password rotation
- Enabling Multi Factor Authentication
- Taking the path of least privilege. All access should be restricted to the least amount needed for a third-party user to perform their role
- Monitoring third party access whilst connected
- Controlling third party access to ensure connectivity to networks and systems can be stopped if there is a suspicion of a breach
Third parties should be viewed as an extension to an organisation’s workforce and should abide by the same security practices as the business.
Employee training
As mentioned, it’s important for employees to understand how security works so they can spot potential threats before they become serious issues. Regular training sessions should be conducted so employees know what procedures are needed if they discover suspicious activity or signs of an attempted breach.
By providing comprehensive training for both new and existing employees, firms can ensure that potential risks posed by cybercriminals are identified quickly and effectively. Staff will also learn about the procedures necessary for compliance with industry regulations ensuring that your firm meets all legal requirements and minimises the risk of non-compliance fines or penalties.
Businesses should also consider implementing additional measures such as periodic phishing tests which will help identify any potential weak areas where attackers may try to exploit vulnerabilities or gaps in knowledge among staff members.
Read our article on the importance of employee training as part of internal auditing for more information on creating an effective program.
Regulatory compliance
Businesses must ensure they comply with all applicable regulations related to data security and privacy including GDPR (General Data Protection Regulation) and PCI DSS (Payment Card Industry Data Security Standard). These regulations impose restrictions on how businesses collect, store, and transmit customer data which must be followed at all times; failure to do so could result in costly fines or other penalties being imposed by regulators.
The Information Commissioners Office (ICO), the UK’s independent authority which protects all of our data and information rights, will impose significant penalties to those companies that don’t take adequate security measures to prevent or contain a serious personal data breach.
Working with a consultancy can help firms stay up-to-date with any changes to these regulations so processes can be adjusted accordingly if needed. Working towards ISO 27001 certification ensures firms not only manage the security of information assets, it can also help avoid significant fines because of poor advice or ignoring the rules.
Is it time for your firm to conduct an internal audit?
As these top five concerns indicate, it’s crucial to continually monitor changes in the external environment that could impact the security of information systems. An internal audit will help protect your firm from potential cyber threats.
At Inavate, we believe in getting to know you. Each firm is unique and understanding your business’, strategy, culture and goals is essential when it comes to protecting sensitive data. Our comprehensive auditing process examines every aspect of your firm so that together, we can keep security breaches at bay, protect sensitive data and ensure your information security management systems continue to evolve.
Information security management for Financial Services
When it comes the financial services industry, information security management is paramount. Failure to properly secure sensitive customer data could lead not only legal ramifications but also reputational damage if customers lose trust in your business due its inability protect their information adequately.
By understanding these information security concerns you can start taking steps towards reducing risks posed by these threats thereby keeping your customers’ data safe!
Implementing ISO 27001 certification via an experienced consultant partner is highly recommended too!
