Ben Parker, CEO at eflow Global, on how consolidating information can help organisations achieve a comprehensive view of their regulatory compliance
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When it comes to compliance, financial institutions are constantly navigating a landscape that is not only highly complex, but also in a state of perpetual flux. Firms must ensure that they are meeting the current standards set by regulators. Furthermore, they must also stay ahead of the curve in a world where regulations are continuously evolving. It’s about keeping up with the rapid advancement of technology, particularly in areas like artificial intelligence. It reshapes both the methods of regulatory enforcement and the strategies employed by those who seek to circumvent the rules.
Accordingly, the importance of technology and data in compliance strategies is ever increasing. Traditional approaches, such as manual data entry and analysis, are increasingly inadequate in meeting the demands of modern regulations. Just look at the frequency and granularity of data reporting that is needed for the EMIR Refit regulations as a practical example.
However, as financial firms have recognised this shift and turned to technology as the solution, the transition has brought new problems of its own. Namely, the fragmentation of data across disparate, siloed systems. So, how do firms solve this issue?
The data fragmentation problem in compliance
The issue of data fragmentation has become a common occurrence in compliance. Firms are often deploying multiple technology solutions to manage their regulatory obligations. Across areas such as trade surveillance, eComms surveillance, best execution and transaction reporting. As a result, they often find themselves grappling with data silos caused by using multiple, disconnected systems.
While these tools are often very good at specific tasks, a lack of data integration between systems will harm a firm’s overarching compliance efforts. These platforms, if sourced from different vendors, may not be able to share data between one another. This ultimately undermines their effectiveness, negating the operational efficiency technology is supposed to add.
The use of multiple systems by firms can happen for a variety of reasons. For example, legacy technology that has been in place for a number of years, the need to comply with different regulations as the business has scaled and changes in regulatory strategy. Moreover, you also need to consider that reporting formats can differ between regions, as can protocols for monitoring market abuse. When you combine all of these variables, it means only one thing – identifying non-compliant activity is trickier for firms to achieve, as is demonstrating compliance to regulators.
This is a major problem as, perhaps more than ever before, different areas of compliance overlap. For example, being able to monitor suspicious messages shared through digital communications channels could help identify instances of market abuse. Or predict when it might take place. This relies on a firm being able to map its trade data over eComms surveillance data to create a complete picture of the activity. Without being able to do this, firms would have to spend huge amounts of time and resources manually cross-referencing data from separate systems. In turn this increases the risk of human error and the danger of breaching regulations.
Why a holistic system supports compliance
Rather than having to implement complex and costly integrations between in-house and third party apps, a holistic compliance platform can provide the seamless flow of data between various sources via straight-through processing. This creates a real-time overview of compliance processes and streamlines workflows, reducing human errors and enhancing efficiency.
With such technology in place, firms have a central digital hub from which to manage their holistic regulatory strategy. If chosen wisely, additional modules can be easily added and integrated to meet new regulatory requirements as they emerge. This allows firms to scale more effectively.
This ‘single source of truth’ also enables compliance professionals to have a broader understanding of trading activity taking place across their organisation. It also facilitates improved sharing of information between different departments, trading desks and regional offices. This ‘joined up’ approach is likely to become even more important. As the financial landscape becomes increasingly interconnected this will be incredibly challenging to achieve without a centralised digital platform.
New regulations such as EMIR Refit require significant extra reporting requirements. The sheer amount of data and the speed with which it needs to be processed means such automation and integration tools are crucial. Moreover, in such a digitally diverse landscape, a holistic system allows companies to assess the numerous data points needed to be compliant without any regulatory gaps.
A future non-negotiable
While many firms are currently grappling with multiple compliance systems and data silos, employing a centralised system will become a non-negotiable in the future of compliance. Not only are regulations constantly changing, but trading strategies are evolving even quicker. This means that instances of market abuse, driven by trends like growing interest in digital assets and AI-powered trading, are only likely to increase. If firms are hindered by disparate compliance systems, they leave themselves open to significant regulatory risk.
The underlying challenge for companies is to find ways to maintain compliance and keep on top of changing regulations while also ensuring these efforts do not place an unnecessary strain on resources. In the face of these challenges, a holistic compliance system offers the simple solution to striking this balance – it enhances the efficiency, accuracy, adaptability and overall effectiveness of regulatory processes. Crucially, it is clear that regulators have growing expectations of firms to take a proactive approach to this challenge.
A centralised regulatory system also sets firms up to integrate more advanced tools like AI. There are already highly sophisticated compliance tools that have integrated features like natural language processing to ‘translate’ messages and link suspicious communication to abusive trading. The more comprehensive and diverse the data, the better these models work at analysing trends and spotting abuse.
A holistic solution to a complex compliance challenge
While a firm’s intention may be to drive efficiency, the adoption of compliance technology without a coherent strategy can in fact create more issues. If compliance systems can’t communicate effectively with each other, errors creep into datasets and gaps in regulatory processes appear. This means firms risk breaching regulations and suffering greater market abuse, with both outcomes bringing financial and reputational damage.
The key lies in integrating these disparate data sources into a single, cohesive, holistic system. By consolidating information, businesses can achieve a comprehensive view of their regulatory compliance. Therefore, reducing the need for cumbersome IT infrastructure and ensuring they remain agile in the face of ongoing regulatory changes. Ultimately, a holistic system simplifies a regulatory and trading landscape that is increasingly varied and complex.
Ben Hunter, Senior Director of Financial Services at Gigamon, on the impact of the Digital Operational Resilience Act (DORA) and what financial institutions can do to ensure lasting compliance
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The Digital Operational Resilience Act (DORA) came into force on January 17th. It’s high time for financial institutions to refine their compliance and Cybersecurity efforts. This regulation isn’t just another box-ticking exercise. It represents a shift in the financial services industry that touches everyone in the ecosystem. And every corner of the organisations within it. From IT teams to the board, every department must pull together under a cohesive cyber strategy to meet the challenge. It’s not simply about systems and software. DORA demands a cultural shift toward organisation-wide cyber resilience.
At this stage, the big changes should already be in place. However, the focus now must be on the finer details. The overlooked pieces that could potentially make or break compliance and prove extremely costly. Organisations must tweak processes and ensure every element of their plan works seamlessly and aligns with the broader goal of operational resilience. Here are three areas of focus to perfect preparedness and ensure DORA compliance is not just a box checked but a new standard embraced by the whole organisation.
Criticality of third-party Cybersecurity management
One of DORA’s requirements is reducing reliance on single ICT service providers. This is designed to safeguard financial institutions against concentrated risk. By now, all structural changes should already be in place, with organisations diversifying their ICT providers. Or improving internal capabilities to reduce their external dependencies. However, compliance doesn’t end with restructuring. The focus must now shift from restructuring to managing these relationships effectively. Organisations should be looking to perfect their third-party risk assessment, monitoring, and due diligence strategies. They must ensure their processes for vetting ICT service providers are not just in place but are meticulously detailed. Contracts need to leave no room for ambiguity, with explicit terms outlining providers’ security and risk management strategies. These agreements must be revisited and stress-tested to confirm they align with DORA’s standards.
Equally critical is ironing out the specifics of ongoing monitoring and oversight. Institutions should be finalising the structure and frequency of their performance reviews and audits. Ensuring these mechanisms are robust enough to identify and address any emerging vulnerabilities. Moreover, by focusing on the details now, organisations can build a resilient operational framework that doesn’t just meet DORA’s requirements but builds resilience into their core operations for years to come.
Global efficiency through multi-cloud environments
Adopting a multi-cloud strategy has become essential for financial institutions operating on a global scale. It mitigates concentrated risk by avoiding dependence on a single provider and allows organisations to address the unique regulatory and operational challenges of different regions. However, the complexity of multi-cloud environments brings its own challenges. Particularly in ensuring the visibility and control required under DORA. This is why it’s crucial for organisations and their third parties to refine the tools and processes that support this level of visibility and allow the security teams to continuously monitor their environments.
According to recent data, 50% of CISOs say their confidence in risk management hinges on having full visibility into all data in motion, including encrypted and lateral traffic across both on-premises and cloud environments. This underscores the importance of advanced monitoring capabilities to effectively manage the complexities of multi-cloud infrastructures. While DORA mandates comprehensive visibility, the benefits go beyond just meeting compliance requirements. Deep observability strengthens organisations’ ability to detect vulnerabilities in real-time, ensuring seamless operations across regions and providers, and service continuity. For multi-cloud strategies to be effective, they must be paired with the right network-level monitoring capabilities. It’s important to build resilience from the inside out.
Organisational alignment to demonstrate Cybersecurity compliance
Demonstrating compliance isn’t just about avoiding fines and ticking regulatory boxes. It’s about preserving trust and protecting the organisation’s reputation. Reputational damage and financial penalties hit the top of the organisation hardest. This makes board-level engagement essential to ensuring Cybersecurity efforts are prioritised and aligned with broader business objectives. Boards must recognise that Cybersecurity is not a siloed function; it’s a key aspect of business resilience.
While security leaders are responsible for designing and implementing security strategies, their ability to deliver is directly tied to the board’s involvement. Board members control the decisions that shape an organisation’s Cybersecurity posture, from budget allocation to strategic priorities. Without their active engagement, security leaders may lack the resources, influence, or organisational buy-in necessary to implement comprehensive security measures. This can lead to significant gaps in compliance efforts and overall resilience.
To demonstrate compliance effectively, organisations need a unified approach to gathering, standardising, and presenting evidence to regulatory authorities. This includes aligning on consistent formats for documenting key areas like risk assessments, incident management, security testing, and third-party oversight. By finalising internal policies and leveraging automation tools, institutions can ensure their compliance evidence is regulator-ready and accessible. Such coordination not only satisfies DORA’s demands but also signals a strong, unified commitment to operational resilience. One that must come from the top and ripple throughout the entire organisation.
With penalties for non-compliance reaching up to 2% of global annual turnover, financial institutions cannot afford to be anything less than fully aligned on their compliance strategies going forward. Furthermore, as the broader compliance frameworks are now finalised, the focus must shift to perfecting the finer details that will ensure long-term resilience and success.
About Gigamon
Gigamon offers a deep observability pipeline that efficiently delivers network-derived intelligence and insights to your cloud, security, and observability tools. This eliminates security blind spots, optimises network traffic and reduces tool costs. Therefore, enabling you to better secure and manage your hybrid cloud infrastructure.
Bharat Mistry, Director – Product Management at Trend Micro, on why attack surfaces are more difficult to mange than ever and the need for greater Cybersecurity controls to tackle the problem
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Some surprising news emerged in mid-December. A Freedom of Information request sent to the Financial Conduct Authority (FCA) revealed that the number of c
Cybersecurity attacks reported to the regulator by large financial institutions fell 53% from the previous year. Reported data breaches also fell, by 29%. While welcome news, there are some big caveats.
The fall in reports could signify attacks are getting more sophisticated and harder to spot. The reporting periods also didn’t quite align, meaning two-and-a-half months of possible regulatory reports weren’t included in 2024’s figures. In fact, we’re seeing attacks and breaches at financial services industry (FSI) firms surging. In line with these organisations ramping up investment in digital transformation and IT modernisation projects.
Threat actors are grasping the opportunity with both hands. To keep them at bay, IT and cybersecurity leaders in the sector may need to rethink their approach to cyber risk management.
Cybersecurity controls are urgently required
Digital transformation is on an inexorable path. Driven by customer demand for seamless cross-channel experiences, and the quest for more streamlined business processes and productivity gains. Cloud adoption, mobile and app-centric services, remote workforces, and expansive supply chains are the result. However, this rapid change comes at a price. Research warns that half (49%) of global FSI leaders believe their attack surface is spiralling out of control.
Put simply, the ‘attack surface’ is the total expanse of all the IT and OT systems in a business that could theoretically be hacked. It includes everything from on-premises desktops and servers to cloud containers and even employees. Vulnerabilities and misconfigurations across these systems and services are inevitable. And the more assets there are, the more chance there is that a determined threat actor will find a weakness. This allows them to compromise the corporate network or a critical cloud account.
Heeding the warning
The likelihood of them doing so is increasing all the time. Not just because the typical FSI attack surface is increasing, but also because cybercriminals and nation-state operatives are getting better at using AI to their advantage. The National Cyber Security Centre (NCSC) warned back in January 2024 that AI “will almost certainly increase the volume and heighten the impact of cyber-attacks over the next two years”. It’s right. Generative AI in particular lowers the bar for budding threat actors by enabling them to create highly effective social engineering campaigns. And perform reconnaissance at scale to find weaknesses in organisations’ attack surfaces. In some cases, these weaknesses may exist in AI tools brought in by workers themselves. One report claims over a third of firms are struggling with shadow AI.
Our adversaries are also aided by the sheer complexity and interconnectivity of modern digital environments. APIs, microservices and third-party integrations -including frequently buggy or downright malicious open source components – expand the attack surface yet further.
Why it’s time for change
Managing risk across these environments should be a priority for obvious financial and reputational reasons. Open Banking rules and the growth of FinTech have made it easier for dissatisfied customers to jump ship. Furthermore, providing more options for those looking for a new provider. A serious breach could be the catalyst for a mass exodus. It’s also expensive in other ways. FSI is the second-top sector overall in terms of the average cost of a data breach. This is estimated to be over $6m per incident, assuming no more than 113,000 records are compromised.
However, there’s increasingly a regulatory imperative for FSI firms to rethink their Cybersecurity strategy. Any operating in the EU now has to comply with a rigorous new set of requirements in the EU Digital Operational Resilience Act (DORA). From January 1, 2025, those in the UK deemed to be critical third parties (CTPs) will be required to put in place a number of “technology and cyber risk management and operational resilience measures”.
A new mindset
So what does this mean in practice? Modern technology environments are dynamic, with new assets appearing and disappearing. Furthermore, new vulnerabilities are emerging and fresh misconfigurations surfacing on a daily or even hourly basis. Managing risk across this vast, incredibly volatile and highly distributed environment requires a new approach. Traditional perimeter defences are no longer sufficient.
Instead, FSI firms need continuous monitoring of risk across their entire attack surface. From endpoints and networks to servers and cloud workloads. Ideally, such a platform will flag areas of concern and either suggest improvements or automatically remediate. It could be something as simple as changing an insecure password, or patching a critical vulnerability newly published by a key vendor. This is the way to build resilience for the long term.
But there’s more. Some threats will always sneak through corporate defences. That’s why it’s also vital to expand security operations capabilities with AI-driven analytics and cross-layer detection and response (XDR). The goal is to correlate threat data across multiple layers and automatically prioritise alerts for stretched analyst teams. Robust incident response processes are also key here, to ensure no time is wasted in containing the threat and minimising any damage caused.
More broadly, it’s about fostering a culture of cyber resilience. Continuous improvement, proactive defence, and a willingness to adapt are ingrained in the corporate mindset. More Cybersecurity regulations are promised by the government in 2025. The clock’s ticking.
Martin Greenfield, CEO of Quod Orbis, on a troubling paradox within the cybersecurity landscape: despite substantial investments in security infrastructure, confidence levels and actual capabilities remain worryingly misaligned.
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Financial institutions face concrete regulatory pressure on Cybersecurity with the European Union’s Digital Operational Resilience Act (DORA) coming into force in February. This landmark regulation demands robust ICT risk management and comprehensive security monitoring. Currently, many organisations continue to rely on disparate tools and spreadsheets that may leave them vulnerable to sophisticated threats. These include AI-powered deep fakes and targeted spear phishing campaigns.
This challenge transcends the financial sector as organisations across all industries face mounting pressure to demonstrate both security effectiveness and regulatory compliance. Our research reveals a stark reality. Organisations typically maintain an average of 19 security solutions per team. However, a surprising 41% still cite insufficient technology as the primary obstacle to maintaining a robust security posture.
This misalignment points to a fundamental issue. Organisations must recognise effective cybersecurity isn’t achieved through quantity of tools, but through strategic selection of the right solutions. Furthermore, perhaps most concerning is the false sense of security prevalent among IT decision-makers. While 93% express confidence in their infrastructure visibility tools, an alarming 95% acknowledge difficulties in accessing specific digital assets over the past year. This creates dangerous blind spots leaving organisations exposed to both security breaches and compliance shortfalls.
Understanding the Cybersecurity challenge
Today’s enterprise infrastructure resembles a tapestry of critical assets, connections and endpoints. To put this complexity into perspective: IT teams now manage an average of 31 endpoints per person across their organisation. For a company of 1,000 employees, this translates to more than 30,000 devices requiring constant monitoring and protection. This challenge intensifies with the widespread adoption of cloud services, hybrid working arrangements and an ever-growing ecosystem of connected devices.
Scale amplifies these difficulties markedly. Our research reveals organisations with more than 1,250 employees demonstrate the lowest confidence in their existing tools (88%) and face the greatest challenges in accessing critical assets (97%). Moreover, these larger enterprises typically wrestle with an unwieldy combination of legacy systems, bespoke solutions and modern platforms. This results in notably lower visibility rates (79%) compared to their smaller counterparts.
Perhaps most revealing is the stark confidence gap between technical and compliance teams. While 94% of information security directors express confidence in their system visibility, merely 66% of compliance directors share this outlook. This disparity exposes a crucial misalignment between technical capabilities and compliance requirements. One that poses serious operational risks as regulatory frameworks increasingly demand continuous monitoring. Organisations clinging to manual compliance processes face an unstable burden. Teams are stretched thin handling routine tasks while regulations grow more complex. Embracing automated technologies to handle routine monitoring requirements will allow compliance teams to pivot from being reactive box-checkers to strategic risk managers.
Moving from reaction to prevention
The impulse to combat emerging threats by rapidly acquiring new security solutions has led many organisations to create sprawling, inefficient systems. These often compound the very problems they aim to solve.
This reactive approach has trapped organisations in a costly cycle of diminishing returns. Despite substantial technology investments, nearly 40% of firms report a troubling lack of actionable intelligence, while 37% struggle with budget limitations. This paradox is increasingly drawing board-level scrutiny. And rightfully so. After years of approving emergency technology purchases to plug cybersecurity gaps, boards are now questioning the value of new investments. Furthermore, tthis creates a dangerous stalemate: organisations need smarter, not just more, technology investment.
However, a more strategic approach is gaining traction through integrated system monitoring platforms. These comprehensive solutions unite previously disconnected tools under a single dashboard. This can offer real-time visibility across the entire cybersecurity landscape. This unified approach enables teams to identify and address vulnerabilities before they evolve into security incidents. A capability that resonates with the 82% of organisations who recognise enhanced visibility would substantially strengthen their cybersecurity posture.
It’s encouraging that 72% of IT teams have secured increased budgets over the past three years. However, the path forward requires more than mere financial investment. Organisations must shift from reactive spending to strategic deployment. Although this presents its own challenge: convincing board members that additional tooling represents an investment in comprehensive visibility rather than merely plugging security gaps.
The path forward
The transformation from fragmented security to comprehensive oversight demands more than technological upgrades. It requires a fundamental reimagining of how organisations approach cybersecurity monitoring and compliance.
The advantages of this strategic shift are compelling and quantifiable. Our analysis reveals security teams anticipate multiple efficiency gains: 38% expect automation to streamline document creation, 37% foresee improved board pack preparation, and 36% anticipate dedicating more time to strategic security assessments. Perhaps most significantly, 35% predict a reduction in human error alongside enhanced data accuracy. The efficiency gains are substantial. Teams could reclaim up to 60 hours annually per member on board reporting alone, time better invested in strategic security initiatives.
With regulatory frameworks growing increasingly sophisticated across sectors, including the forthcoming DORA regulation, maintaining current practices is no longer viable. The disparity between perceived and actual security capabilities poses a tangible risk that organisations must address proactively.
About Quod Orbis
Quod Orbis is the single source of truth across security, risk and compliance, providing an orchestration layer for the entire tech stack whether in the cloud, on-premise, legacy or bespoke. Founded in 2018, Quod Orbis became part of Dedagroup, one of the leading Italian IT players, in 2024.
A pioneer in Continuous Controls Monitoring (CCM), Quod Orbis provides complete and constant visibility into a company’s cybersecurity, compliance and risk posture. Quod Orbis’ ability to connect with every piece of technology within a business, unrivalled automation capabilities and continual support enables the company to serve a global client base across a wide variety of industries.
Nick Merritt, Executive Director at Designit, on six developments shaping the future of banking in 2025
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Retail banks are entering 2025 with a heady mix of ambition and trepidation. A bewildering blend of technological wizardry and ever-shifting customer expectations has forced banks into a relentless cycle of adaptation. To stay ahead, six key areas are emerging as the lodestars guiding their strategies for the coming year.
Digital Transformation and Automation – Predicting Your Needs Before You Have Them
Imagine a world where banks predict your needs before you’ve even realised them. From AI-driven chatbots that never sleep to robo-advisors whispering bespoke investment tips into your ear, automation is rewriting the rulebook on customer interaction. But the magic isn’t confined to the shiny front-end; back-office systems are also getting a makeover. Robotic Process Automation (RPA) is busy in the engine room, banishing inefficiencies and sidestepping human error with quiet efficiency.
And then there’s the matter of personalisation—a concept that banks are finally treating as more than a marketing buzzword. Armed with advanced data analytics, banks are no longer just responding to customer needs—they’re predicting them. Pre-approved loans or a savings plan tailored to your Friday night wine habit? No problem.
Cybersecurity: Evolving as Fast as the Threats
With this digital power comes a greater need for vigilance. Cybercriminals are evolving just as quickly, turning cybersecurity into a battlefield. AI-driven fraud detection tools now scan for anomalies with hawk-like precision, while biometric authentication methods—fingerprints, faces, even voices—transform our bodies into passwords.
Cyber resilience has become essential, ensuring banks bounce back swiftly from attacks. Trust, in banking as in life, remains hard-won and easily lost.
Sustainability: ESG as a Competitive Advantage
Environmental, Social, and Governance (ESG) criteria have transitioned from being a footnote to taking centre stage. Customers are no longer content with bland promises of responsibility—they’re demanding action. Enter green loans with their tempting interest rates, ESG investment funds that let you save the planet while saving for retirement, and carbon-neutral pledges that make you feel virtuous about your overdraft.
It’s not just a moral imperative; it’s good business sense. In a world increasingly attuned to sustainability, ESG is a differentiator. Banks that can convincingly wear the green badge of honour are more likely to attract eco-savvy customers and forward-thinking investors alike.
Embedded Finance & Partnership Models
Embedded Finance might sound like jargon, but it’s quietly reshaping how we interact with money. Why go to a bank when the bank can come to you—disguised as a “Buy Now, Pay Later” button on your favourite shopping app or as a seamless payment option in your rideshare app? Banks are waking up to the fact that ecosystems, not high-street branches, are where the action is.
Partnerships with fintech firms are unlocking new avenues for growth. Whether it’s integrating loans into car dealership platforms or powering payments for subscription services, embedded finance is giving banks a chance to slip into customers’ lives in ways they barely notice—but deeply appreciate.
Cryptocurrencies: Cautiously Testing the Waters
And then there’s the crypto conundrum. Once the domain of tech evangelists and speculative investors, cryptocurrencies are elbowing their way into the mainstream. Bitcoin ETFs have made it easier for traditional investors to dip a toe into the crypto waters, while Ethereum and Ripple (XRP) are offering solutions that align with real-world banking needs.
Ripple’s laser focus on cross-border payments could revolutionise international money transfers, slashing costs and speeding up transactions. Ethereum’s smart contracts, meanwhile, promise to simplify complex processes like loan approvals. And Bitcoin, the poster child of the crypto world, is slowly gaining traction as a viable payment method.
Yet, it’s not all smooth sailing. Volatility, scalability issues, and a regulatory environment that can best be described as “uncertain” are significant hurdles. Still, with pro-crypto voices gaining ground, 2025 might just be the year retail banks cautiously dip their toes into the digital currency pool.
Personalisation: The Age of “Me”
Customers expect their banks to understand more than just account numbers; they want personalised interactions that anticipate their ambitions. Advanced analytics are turning this into reality, moving banking from transactional to relational.
Imagine a bank that adjusts your credit card rewards for your travel habits or nudges you toward your dream car before you even start shopping. Personalisation isn’t just a service upgrade—it’s a survival strategy.
Looking Ahead to 2025 and Beyond…
The opportunities for retail banks in 2025 are as immense as they are complex. Digital transformation is reinventing customer experiences, ESG is aligning institutions with the values of an increasingly conscientious public. Meanwhile, Embedded Finance is quietly rewriting the rules of engagement. Cryptocurrencies, for all their challenges, are becoming harder to ignore, while data-driven personalisation is making banking feel more like a partnership than a transaction.
For banks willing to embrace these shifts, the rewards are clear: deeper customer loyalty, stronger revenue streams, and a reputation for innovation. Standing still is no longer an option.
Bryan Daugherty, Global Public Policy Director at the BSV Association (BSVA) and Co-Founder at SmartLedger Solutions, on how blockchain technology provides the accountability and cybersecurity needed to prevent widespread IT catastrophes across sectors
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By Embracing Blockchain, We Can Create a Safer Digital Future
The rapid increase in cyberattacks poses a severe threat to businesses. These attacks are becoming more sophisticated and costly by the day. The average cost of a data breach in the UK is £3.58 million, and in the US now $9 million. It typically takes 200 days for organisations to detect a breach, followed by another 70 days to contain it. These delays expose significant vulnerabilities in traditional data management systems. They rely heavily on third parties, making them prime targets for cybercriminals.
Blockchain technology offers a transformative solution to these challenges by creating a secure, decentralised model that can effectively mitigate risks. It provides an opportunity for both individuals and organisations to take control of their data. Therefore, improving cybersecurity and ensuring operational resilience.
The Problem with Centralised Systems
Traditional cybersecurity systems are built on centralised models, where data is stored in one location or through third-party intermediaries. This structure makes them attractive targets for cybercriminals, creating a “honeypot” of information that can be breached. A concerning statistic is that, for over a decade, organisations have taken an average of 200 days to detect breaches. Despite claims from cybersecurity vendors that they provide “instant detection,” real-world results show significant gaps in protection, putting data at risk for extended periods.
Blockchain: Game-Changing Cybersecurity Features
Blockchain’s decentralised model provides a powerful alternative. By distributing data across a global network of nodes rather than a central location, blockchain makes it exponentially harder for cybercriminals to compromise large datasets. Even if one node is breached, the entire system remains intact. This eliminates the single point of failure that centralised systems suffer from.
Another key feature of blockchain is its immutability. Once data is recorded on a blockchain, it cannot be altered or erased, making tampering nearly impossible. Therefore, this ensures any unauthorised access is immediately detectable, enabling quicker response times and minimising damage.
Real-Time Threat Detection with CERTIHASH
Blockchain’s potential in cybersecurity is already being realised through solutions like CERTIHASH’s Sentinel Node. A blockchain-based tool that provides real-time threat detection. Built on the BSV blockchain, CERTIHASH can detect breaches within 10 seconds or less, offering a proactive approach to cybersecurity. This is a significant improvement over traditional systems, which often take months to identify breaches, leaving organisations vulnerable to prolonged data exposure.
By leveraging blockchain, cybersecurity shifts from being reactive to proactive. This gives organisations the tools they need to stay ahead of evolving threats and safeguard data more effectively.
Overcoming Misconceptions About Blockchain
Despite the clear advantages of blockchain, many organisations remain hesitant to adopt the technology, often due to misconceptions. Furthermore, some still associate blockchain with cryptocurrencies like Bitcoin, which have been linked to ransomware. This outdated view overlooks blockchain’s real potential as a secure, decentralised data management tool.
Blockchain is not just about crypto; it’s about creating a new standard for data integrity and security. Moreover, it offers decentralised, tamper-proof records that give users control over their own identity and data, reducing reliance on vulnerable third-party systems.
A Decentralised, Secure Future
As global reliance on centralised systems grows, so do the vulnerabilities they present. A single point of failure can lead to widespread outages, as seen in numerous cyberattacks and technical malfunctions. Blockchain, with its decentralised architecture, offers a robust alternative that enhances the security and resilience of critical systems. By distributing data across multiple nodes, blockchain ensures continuity even during attacks or outages.
Conclusion
Investing in blockchain cybersecurity is no longer optional. With cyber-attacks growing in scale and sophistication, organisations must adopt cutting-edge technologies to protect their data, operations, and customer trust. Blockchain’s decentralised and tamper-proof architecture offers the key to building a safer, more secure digital future. One where businesses and individuals alike can operate with confidence, free from the constant threat of cybercrime.
Misplaced confidence in visibility tools leaves organisations vulnerable amidst record high data breaches, according to latest research
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A new report from Quod Orbis highlights that 95% of businesses are at risk of a cybersecurity blindspot. A reported 93% of UK organisations have confidence in their system visibility. However, nearly all (95%) of them have struggled to access critical assets in the last year, according to the research.
Over a third (38%) actually rank lack of visibility as one of their biggest challenges, further highlighting the gap between respondents’ perceptions and the reality of their situation. This comes at a time when data breaches this year have already surpassed one billion stolen records.
Quod Orbis Cybersecurity Research
Martin Greenfield, Quod Orbis CEO, comments: “Businesses are suffering from a blind spot that’s leaving them exposed. Misplaced confidence in existing cybersecurity tools means these same organisations are susceptible to data breaches and non-compliance fallout. This results in potentially crippling financial and reputational consequences.”
Quod Orbis commissioned a research study with international research house, Censuswide, to poll 500 board executives and IT decision makers, across enterprises of 500+ employees in the UK.
Cybersecurity Tech Stacks
Cybersecurity tech stacks are growing exponentially in the face of rising threats. The average team manages 19 security solutions at any one time. However, 41% still report a lack of technology as being their biggest challenge when it comes to maintaining a robust cybersecurity posture.
As 72% of IT teams have had their IT budget increased in the past three years, Greenfield urges businesses to break free from the typical cycle of throwing money at a problem and hoping something sticks. “It’s not about the biggest investment, it’s about the right investment.”
A quarter (26%) of IT decision makers are yet to allocate budget to basic security tools like asset visibility technology. This is despite 40% reporting a lack of actionable data.
It’s clear though that businesses recognise the advantage of implementing the right technology. More than eight in 10 (82%) agree that greater visibility over digital assets will greatly improve business security. This is a huge leap from the 93% of respondents who believe their businesses already provide them with the necessary tools.
According to the data, most upcoming IT investments will be allocated to Continuous Controls Monitoring (32%), privileged and identity access management (30%) and zero trust (29%).
The Future
Greenfield concludes: “Digital infrastructure has reached a level of complexity that not only warrants, but demands, complete visibility. Now is not the time to gamble with your company’s security. Furthermore, organisations need to stop adding layers of unnecessary technology as a way of solving the immediate problem. Instead, they must take a step back and think holistically about how to resolve their issues.
“Tools like CCM, powered by automation, help teams see and understand their security and risk posture in real time. This offers peace of mind that all of their data is relevant and up to date. This level of insight provides early awareness of potential problems and empowers teams to take a proactive approach to security, instead of being forced back into the same reactive position they’ve been in for years.”
About Quod Orbis
Quod Orbis is the single source of truth across security, risk and compliance, providing an orchestration layer for the entire tech stack whether in the cloud, on-premise, legacy or bespoke. Founded in 2018, Quod Orbis became part of Dedagroup, one of the leading Italian IT players, in 2024.
A pioneer in Continuous Controls Monitoring (CCM), Quod Orbis provides complete and constant visibility into a company’s cybersecurity, compliance and risk posture. Quod Orbis’ ability to connect with every piece of technology within a business, unrivalled automation capabilities and continual support enables the company to serve a global client base across a wide variety of industries.
Innovative Systems, a leading provider of enterprise data, compliance, and integration solutions, has launched FinScan Marketplace
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The platform will serve as a one-stop shop for anti-money laundering (AML) compliance. It offers a streamlined approach to managing compliance risk and unified case management via a central hub for all related activities. FinScan Marketplace positions itself as a trusted partner for organisations navigating today’s complex, global regulatory landscape.
Removing the complexity of AML compliance
“Our goal with FinScan Marketplace is to remove the complexity of AML compliance. We bring everything organisations need into one unified platform,” said Deborah Overdeput, Chief Marketing Officer at Innovative Systems. “This launch reflects our commitment to delivering solutions that simplify processes. We empower compliance teams to work smarter, and ensure organisations remain vigilant. And fully aligned with evolving regulatory requirements in a rapidly changing landscape.”
FinScan Marketplace revolutionises how organisations manage their AML portfolio. It provides a single, easy-to-navigate interface. Customers can seamlessly access a comprehensive suite of tools. These include sanctions screening, KYC checks, adverse media screening, payment screening, and risk scoring, with additional features continually in development.
FinScan Marketplace
At the heart of FinScan Marketplace is its unified case management system. This integrates all critical AML processes into a cohesive workflow. From performing due diligence checks to monitoring transactions and investigating potential risks, customers can manage everything within a single platform. This integration saves time, reduces errors, and ensures compliance efforts remain seamless and effective.
FinScan Marketplace provides customers with a clear vision of the platform’s evolution. Its intuitive interface lets users view in-progress product developments, register interest in upcoming features. Furthermore, they can participate in design feedback sessions. This approach ensures future enhancements align closely with real-world compliance needs.
“We are not just delivering tools; we are creating partnerships with our customers by building solutions that adapt to their challenges,” Overdeput added. “Transparency and collaboration are key pillars of the FinScan Marketplace.”
Innovative Systems for AML
FinScan Marketplace reflects Innovative Systems’ dedication to becoming a trusted partner for a host of organisations. These include financial institutions, insurance companies, fintechs, casinos and gaming entities, charities and non-profits, government agencies, and other organisations it serves. By continuously delivering value, anticipating industry needs, and prioritising customers’ feedback in its development process, the company demonstrates its commitment to supporting effective and reliable AML compliance.
Innovative Systems delivers enterprise data, compliance, and integration solutions through the company’s leading FinScan®, Enlighten®, and PostLocate® brands. These solutions offer actionable insights and enable organizations to identify the hidden opportunities or risks in their data. We have pioneered best-in-class data quality, data management, and risk and compliance solutions in thousands of applications across more than 65 countries. Our cloud-based (SaaS), on-premise, and hybrid offerings deliver dramatic, measurable improvements in accuracy, cost, and time to production over alternatives. Learn more at innovativesystems.com
About FinScan
Trusted by hundreds of organisations worldwide, Innovative Systems, Inc.’s FinScan offers advanced Anti-Money Laundering (AML) compliance technology and consulting solutions. Built on decades of experience in data management and proprietary matching technologies, FinScan provides a data-first, risk-based approach to ensure unparalleled accuracy and efficiency in identifying and reducing risk, accelerating AML compliance workflows, and optimising team productivity. FinScan’s comprehensive, integrated platform includes Know Your Customer (KYC), unparalleled sanctions screening, risk scoring, data quality, and advisory services for implementing a holistic compliance program. FinScan offers flexible deployment including SaaS, on-premise, and hybrid options. FinScan’s SaaS clients are screening more than 300 billion names a year. Learn more at finscan.com
Alex Mosher, Chief Revenue Officer at Armis, on why businesses are prioritising their cybersecurity budgets, ensuring they have the resources needed to counteract emerging threats
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Cybersecurity is no longer optional. In 2025, we expect a significant uptick in overall spending. With threats becoming more sophisticated, organisations recognise the imperative to invest adequately in cybersecurity measures. This trend is driven by the growing awareness that the cost of a cyber-attack far outweighs the investment required to prevent it.
In 2025, there will be a marked shift toward comprehensive security solutions that offer integrated functionalities. Companies will increasingly seek platforms that provide threat detection, incident response, and compliance management within a single solution. This trend arises from the need to simplify security management and reduce complexity. Siloed solutions are ineffective, expensive and reduce the efficiency of security teams with finite resources. Furthermore, by consolidating various security functions into a unified platform, businesses can streamline their processes and enhance their overall security posture. Integrated solutions offer a holistic approach to cybersecurity, addressing multiple aspects of an organisation’s security needs. The move toward comprehensive solutions also reflects a broader understanding of the interconnectedness of cybersecurity elements. A unified solution that addresses multiple areas provides a more robust defence against potential breaches.
Emphasis on Automation and AI
Automation and artificial intelligence (AI) are revolutionising the cybersecurity landscape. Organisations increasingly prioritise spending on AI-driven security solutions to enhance threat detection and response capabilities. The focus will be on tools that streamline incident response, reduce manual workloads, and enable security teams to focus on more strategic initiatives. Moreover, the trend will also include spending on analytics tools that help organisations understand and mitigate risks based on the current threat landscape. Threat intelligence and analytics play a pivotal role in enhancing an organisation’s security posture.
AI technologies offer a proactive approach to cybersecurity, allowing organisations to identify and mitigate threats in real-time. By leveraging machine learning algorithms and data analytics, businesses can gain deeper insights into potential vulnerabilities and respond swiftly to emerging threats. The emphasis on automation and AI is driven by the need to enhance efficiency and effectiveness in cybersecurity operations. By automating routine tasks and employing AI for advanced threat detection, businesses can optimise their resources and achieve a more robust security posture.
Investment in Cloud Cybersecurity Solutions
The migration to cloud environments continues to accelerate, driving the need for robust cloud security solutions. Key investment areas will include cloud security posture management (CSPM) and cloud workload protection platforms (CWPP). The emphasis on cloud security reflects the growing reliance on cloud services for business operations. Moreover, organisations recognise that securing their cloud environments is paramount to safeguarding digital assets and ensuring regulatory compliance. Investments in cloud security solutions also align with the broader trend toward digital transformation. Businesses are leveraging the cloud to drive innovation and agility. This neessitates a strong security framework to protect their evolving digital ecosystems.
Enhanced Budgeting for Compliance and Regulatory Needs
Data protection and privacy regulations are becoming increasingly stringent worldwide. Also, this necessitates enhanced budgeting for compliance-related cybersecurity solutions. I expect organisations to allocate more resources to auditing tools, risk management platforms, and solutions that help them meet regulatory requirements such as GDPR, CCPA, and HIPAA.
The emphasis on compliance reflects a growing awareness of the legal and reputational risks associated with non-compliance. Investing in compliance-related solutions also aligns with the broader trend toward data-driven decision-making. Moreover, by implementing tools that ensure alignment with regulatory requirements, organisations can demonstrate their commitment to ethical data practices and build trust among stakeholders.
Growth in Cybersecurity Insurance Expenditures
Cyber insurance is becoming an essential component of an organisation’s risk management strategy. The growth in cybersecurity insurance expenditures reflects a broader awareness of the financial implications of cybersecurity threats. Investing in cyber insurance aligns with the emphasis on accountability in cybersecurity spending. By securing coverage for potential losses, businesses can demonstrate their commitment to protecting their assets and ensuring business continuity in the face of unforeseen events.
By understanding the key cyber spending patterns outlined here, businesses can make informed decisions. They can enhance their security posture to protect their valuable assets and ensure business continuity as we move into 2025.
Seth Ruden, Director of Global Advisory at BioCatch, on how the UK’s financial institutions can be better prepared to deal with authorised push payment (APP) scams
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The focus on authorised push payment (APP) fraud scams – where scammers impersonate reputable individuals or institutions – has increasingly shifted to whether banks should reimburse customers for funds stolen by scammers. We can gain valuable insights from the approaches taken by financial institutions in the UK. They are leading the way with their cybersecurity efforts compared to their counterparts in other regions.
First, British banks established a standardised reporting system and typology. This is a fundamental first step that every financial institution should take to grasp the full scope of how financial fraud affects banking consumers. Banks may disclose the type of fraud, the amount of money stolen, and the bank measures used to prevent the scam from occurring. This centralised view brings the true scope of the totality of scams into focus.
Three ways the UK’s financial institutions are leading in the fight against fraud
Second, the UK has developed strategies to identify specific scams and reduce their losses. The regulator added a slew of new controls to banks, including confirmation of payee, scam and transaction-specific interventions, and money mule account controls for those receiving the illicit funds. Before regulation, not every financial institution had implemented these controls, providing an uneven playing field and allowing scams to flourish. Banks outside the UK should not wait for regulators to mandate controls like these. They should do it on their own accord to prove they realise the magnitude of the scam problem and the severity of its impact on bank customers.
Improved consumer financial scam controls should be a minimum requirement for financial institutions in 2024. These controls should cover: authorised push payment behavioural analysis, money mule behaviour around both account opening and account activity, and analysis of both inbound and outbound transactions. Furthermore, detecting and then closing money mule accounts – used by fraudsters as an intermediate stop between the victim’s account and the final destination for the stolen funds – is absolutely critical, as they serve as the backbone for every consumer-based financial scam.
The third? Getting involved. Banks need to integrate themselves and participate with industry and trade associations – such as the FS-ISACs and GASA (Global Anti Scam Alliance). These associations provide opportunities to network with peer institutions and others in the fraud value chain to share scam information and learn from each other.
Effective Fraud Prevention: A practical assessment of Key Strategies
Many banks today use precision anomaly detection and behavioural biometrics to notify them when a fraudulent transaction takes place. Financial institutions in the UK often issue actionable alerts to clients in real-time. Santander UK, for example, now asks customers if they have seen the item in person before approving a payment through Facebook Marketplace. For online account opening, there are good solutions for bot-detection to prevent automated bots from opening new accounts, behavioural biometrics to detect suspicious patterns of data entry, and solutions that can analyse the customer KYC data. A secondary benefit of strong account opening controls is the reduction of operational costs to close bogus accounts.
For detecting existing money mule accounts, traditionally it required tracking the circulation of funds, both the inbound and outbound transaction activity and looking for anomalies (e.g. high value in and then immediately transferred out). Now, user behaviour anomalies – such as changes in the user’s input/output device activity or navigation preferences – may indicate a change in account control before the suspicious transactions take place.
Protecting Customers: What the future holds for Financial institutions
Since the UK’s introduction to faster payments, the region has become a centre of research for the rest of the world. However, eliminating threats to UK customers and their money has remained difficult despite an increase in regulation. While Governments and international groups are starting to identify and take down some of these organisations there are still hundreds of thousands of scammers and coerced individuals involved in these intricate schemes. A key challenge for financial institutions is understanding how scammers get their customers to initiate authorised payment. However, these challenges can be combatted by understanding the psychology behind how scammers work which can be a prominent factor in tackling the problem. Financial institutions must ensure that, in a few years’ time, they can confidently answer ‘yes’ to the question: Did we do enough to help eliminate consumer financial scams?
Other key findings include surge of info-stealers and botnets, an increase in evasive malware and a rise in network attacks across the Asia Pacific
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WatchGuard® Technologies, a global leader in unified Cybersecurity, today released the findings of its latest Internet Security Report. The quarterly analysis details the top malware, network, and endpoint security threats observed during the second quarter of 2024.
Among the report’s key findings was that 7 of the Top 10 malware threats by volume were new this quarter. Furthermore, this indicates threat actors are pivoting toward new techniques. The new top threats included Lumma Stealer. This advanced malware is designed to steal sensitive data from compromised systems. Also, a Mirai Botnet variant, which infects smart devices and enables threat actors to turn them into remotely controlled bots. And a LokiBot malware, which targets Windows and Android devices and aims to steal credential information.
Cybersecurity fears for Blockchain
WatchGuard’s Cybersecurity Threat Lab also observed new instances of threat actors employing “EtherHiding”. A method of embedding malicious PowerShell scripts in blockchains such as Binance Smart Contracts. In these instances, a fake error message linking to the malicious script appears on compromised websites, prompting victims to “update your browser”. Malicious code in blockchains poses a long-term threat. As blockchains are not meant to be changed, theoretically, a blockchain could become an immutable host of malicious content.
“The latest findings in the Q2 2024 Internet Security Report reflect how threat actors tend to fall into patterns of behaviour. Certain attack techniques become trendy and dominant in waves,” said Corey Nachreiner, CSO, WatchGuard Technologies. “Moreover, the report illustrates the importance of routinely updating and patching software and systems to address security gaps and ensure threat actors cannot exploit older vulnerabilities. Adopting a defence-in-depth approach, which can be executed effectively by a dedicated managed service provider, is a vital step toward combating these cybersecurity challenges successfully.”
Additional key findings from WatchGuard’s Report include:
Malware detections were down 24% overall. This drop was caused by a 35% decrease in signature-based detections. However, threat actors were simply shifting focus to more evasive malware. Moreover, in Q2 2024, the Threat Lab’s advanced behavioural engine that identifies ransomware, zero-day threats, and evolving malware threats, found a 168% increase in evasive malware detections quarter-over-quarter.
Network attacks increased 33% from Q1 2024. Across regions, the Asia Pacific accounted for 56% of all network attack detections, more than doubling since the previous quarter.
An NGINX vulnerability, originally detected in 2019, was the top network attack by volume in Q2 2024. It had not appeared in the Threat Lab’s Top 50 network attacks in previous quarters. The vulnerability accounted for 29% of total network attack detection volume, or approximately 724,000 detections across the US, EMEA, and APAC.
The Fuzzbunch hacking toolkit emerged as the second-highest endpoint malware threat detected by volume. The toolkit serves as an open-source framework that can be used to attack Windows operating systems. It was stolen during The Shadow Brokers’ attack of the Equation Group, an NSA contractor, in 2016.
Seventy-four percent of all browser-initiated endpoint malware attacks targeted Chromium-based browsers, which include Google Chrome, Microsoft Edge, and Brave.
A signature that detects malicious web content, trojan.html.hidden.1.gen, came in as the fourth most-widespread malware variant. The most common threat category caught by this signature involved phishing campaigns. These gather credentials from a user’s browser and deliver this information to an attacker-controlled server. Curiously, the Threat Lab observed a sample of this signature targeting students and faculty at Valdosta State University in Georgia.
UnaFinancial study identifies cybersecurity as most influential factor driving FinTech growth
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A recent study from UnaFinancial has identified cybersecurity as the most influential factor driving the development of FinTech worldwide, with a 63% significance. The second most impactful factor is the average hourly wage rate, with a 13% significance.
The study showed that FinTech growth in Europe, America, and globally has the strongest correlation with the size of the cybersecurity market, with correlation coefficients of 0.8714, 0.9762, and 0.8607, respectively.
In Asia, however, FinTech growth was more closely tied to the size of the consumer electronics market (0.9403). Meanwhile in Africa, it correlated with consumer spending volumes (0.7427). Therefore, globally, cybersecurity emerges as the most significant driver of FinTech growth. More vital protection facilitates a more robust FinTech environment.
Economic Disparities with Cybersecurity: High Income vs Low Income Economies
Economic status also plays a crucial role in shaping FinTech dynamics. High-income countries display pronounced correlations with various factors. Notably, the size of the cybersecurity market (0.6923), consumer electronics market (0.5839), average wage rates (0.6237), and consumer spending volumes (0.6971) are all significantly linked to FinTech growth.
Conversely, low-income economies exhibit no substantial correlations with these factors, highlighting a disparity in FinTech development influenced by financial resources and technological infrastructure.
Middle-income countries show a more nuanced relationship, with FinTech volumes correlating with nominal GDP (0.5373), the cybersecurity market (0.5727), consumer electronics (0.5637), fintech hubs (0.5409), and consumer spending volumes (0.6136). This suggests that while multiple factors impact middle-income countries, cybersecurity remains a vital component.
Quantifiable Cybersecurity Impact on FinTech
Furthermore, another interesting finding was the measurable impact of various factors on FinTech transactions. For example, for every $1 million increase in the global cybersecurity market, FinTech transactions per adult are expected to rise by $31.6. Similarly, a $1 increase in the average hourly wage could boost FinTech transactions by $67.5. The establishment of just one more FinTech hub could increase global FinTech transactions per capita by $839.
Remarkably, as a country’s income grows, the correlation between FinTech growth and two factors—cybersecurity market size and average wage rates—becomes stronger. This means these factors may indeed influence the development of FinTech across a country.
A deeper non-linear analysis further validated the significance of these factors. It revealed that the cybersecurity market is the most influential driver of FinTech growth, with 63% of significance, followed by the average wage rate (13%). As we advance into an increasingly digital future, the investment in and enhancement of cybersecurity will remain a cornerstone of FinTech innovation and expansion.
UnaFinancial Study
The UnaFinancial study considered data from 2022 for 146 countries, which were grouped into four regions: Asia, Europe, Africa and America. The potential factors under consideration included gender ratio, nominal GDP per capita, Internet penetration, cybersecurity market volumes per capita, consumer electronics market volumes, number of FinTech hubs per 100,000 people, average hourly wages, consumer spending per capita, direct investment as a share of GDP, unemployment rates, trade volume relative to GDP, and share of urban population.
The study not only illuminates the integral role of cybersecurity but also provides a roadmap for understanding how various factors interplay to influence the global FinTech landscape. In this digital age, safeguarding financial transactions and technologies is as critical as ever. Moreover, ensuring that FinTech continues to flourish amidst evolving challenges and opportunities.
Gabe Hopkins, Chief Product Officer at Ripjar, on how GenAI can transform compliance
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Generative AI (GenAI) has proven to be a transformational technology for many global industries. Particularly those sectors looking to boost their operational efficiency and drive innovation. Furthermore, GenAI has a range of use cases, and many organisations are using it to create new, creative content on demand – such as imagery, music, text, and video. Others are using the new tools at their disposal to perform tasks and process data. This makes previously tedious activities much more manageable, saving considerable time, effort, and finances in the process.
However, compliance as a sector has traditionally shown hesitancy when it comes to implementing new technologies. Taking longer to implement new tools due to natural caution about perceived risks. As a result, many compliance teams will not be using any AI, let alone GenAI. This hesitancy means these teams are missing out on significant benefits. Especially at a time when other less risk-averse industries are experiencing the upside of implementing this technology across their systems.
To avoid falling behind other diverse industries and competitors, it’s time for compliance teams to seriously consider AI. They need to understand the ways the technology – specifically GenAI – can be utilised in safe and tested ways. And without introducing any unnecessary risk. Doing so will revolutionise their internal processes, save work hours and keep budgets down accordingly.
Understanding and overcoming GenAI barriers
GenAI is a new and rapidly developing technology. Therefore, it’s natural compliance teams may have reservations surrounding how it can be applied safely. Particularly, teams tend to worry about sharing data, which may then be used in its training and become embedded into future models. Moreover, it’s also unlikely most organisations would want to share data across the internet. Strict privacy and security measures would first need to be established.
When thinking about the options for running models securely or locally, teams are likely also worried about the costs of GenAI. Much of the public discussion of the topic has focussed on the immense budget required for preparing the foundation models.
Additionally, model governance teams within organisations will worry about the black box nature of AI models. This puts a focus on the possibility for models to embed biases towards specific groups, which can be difficult to identify.
However, the good news is that there are ways to use GenAI to overcome these concerns. This can be done by choosing the right models which provide the necessary security and privacy. Fine-tuning the models within a strong statistical framework can reduce biases.
In doing so, organisations must find the right resources. Data scientists, or qualified vendors, can support them in that work, which may also be challenging.
Overcoming the challenges of compliance with AI
Despite initial hesitancy, analysts and other compliance professionals are positioned to gain massively by implementing GenAI. For example, teams in regulated industries – like banks, fintechs and large organisations – are often met with massive workloads and resource limits. Depending on which industry, teams may be held responsible for identifying a range of risks. These include sanctioned individuals and entities, adapting to new regulatory obligations and managing huge amounts of data – or all three.
The process of reviewing huge quantities of potential matches can be incredibly repetitive and prone to error. If teams make mistakes and miss risks, the potential impact for firms can be significant. Both in terms of financial and reputational consequences.
In addition, false positives – where systems or teams incorrectly flag risks and false negatives – where we miss risks that should be flagged, may come from human error and inaccurate systems. They are hugely exacerbated by challenges such as name matching, risk identification, and quantification.
As a result, organisations within the industry quite often struggle to hire and retain staff. Moreover, this leads to a serious skills shortage amongst compliance professionals. Therefore, despite initial hesitancy, analysts and other compliance professionals stand to gain massively by implementing GenAI without needing to sacrifice accuracy.
Generative AI – welcome support for compliance teams
There are numerous useful ways to implemented GenAI and improve compliance processes. The most obvious is in Suspicious Activity Report (SAR) narrative commentary. Compliance analysts must write a summary of why a specific transaction or set of transactions is deemed suitable in a SAR. Long before the arrival of ChatGPT, forward thinking compliance teams were using technology based on its ancestor technology to semi-automate the writing of narratives. It is a task that newer models excel at, particularly with human oversight.
Producing summarised data can also be useful when tackling tasks such as Politically Exposed Persons (PEP) or Adverse Media screenings. This involves compliance teams performing reviews or research on a client to check for potential negative news and data sources. These screenings allow companies to spot potential risks. It can prevent them from becoming implicated in any negative relationships or reputational damage.
By correctly deploying summary technology, analysts can review match information far more effectively and efficiently. However, like with any technological operation, it is essential to consider which tool is right for which activity. AI is no different. Combining GenAI with other machine learning (ML) and AI techniques can provide a real step change. This means blending both generalised and deductive capabilities from GenAI with highly measurable and comprehensive results available in well-known ML models.
Profiling efficiency with AI
For example, traditional AI can be used to create profiles, differentiating large quantities of organisations and individuals separating out distinct identities. The new approach moves past the historical hit and miss where analysts execute manual searches limiting results by arbitrary numeric limits.
Once these profiles are available, GenAI can help analysts to be even more efficient. The results from the latest innovations already show GenAI-powered virtual analysts can achieve, or even surpass, human accuracy across a range of measures.
Concerns about accuracy will still likely impact the rate of GenAI adoption. However, it is clear that future compliance teams will significantly benefit from these breakthroughs. This will enable significant improvements in speed, effectiveness and the ability to respond to new risks or constraints.
Ripjar is a global company of talented technologists, data scientists and analysts designing products that will change the way criminal activities are detected and prevented. Our founders are experienced technologists & leaders from the heart of the UK security and intelligence community all previously working at the British Government Communications Headquarters (GCHQ). We understand how to build products that scale, work seamlessly with the user and enhance analysis through machine learning and artificial intelligence. We believe that through this augmented analysis we can protect global companies and governments from the ever-present threat of money laundering, fraud, cyber-crime and terrorism.
Gunnar Már Gunnarsson, Co-founder & CTO of PAYSTRAX on the potential for tokenisation to improve digital payments
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The forward to the Bank of England’s most recent report on innovation in payments begins with the words:
“The concept at the heart of money is trust – a trust which is hard won but easily lost.”
In today’s financial climate, where digital transactions have become the norm, trust and security are more crucial than ever. However, 84% of consumers don’t completely trust online payments, and many drop out before they complete a purchase online due to safety concerns and a lack of payment options.
Tokenisation presents a way forward, offering an increased level of trust and efficiency that could tackle the concerns of consumers. And offer business increased security in the payments process. By replacing sensitive payment card information with unique identifiers (tokens), this technology provides a safe way to handle payment data from seller to consumer.
As the future of payments continues to evolve, safety, simplicity and global alignment will be essential. Tokenisation stands at the forefront of this with the potential to not only reduce fraud but also improve the customer experience.
An extra safeguard against cybercrime with tokenisation
The issue many businesses and customers face is that their data remains exposed during transactions. This increases the risk of fraud and company liability issues in the event of data breaches. Tokenisation technology replaces sensitive data with a unique, randomly generated string of symbols that cannot be easily interpreted. This provides an extra safeguard against cybercrime. This added level of security benefits both consumers and businesses. It can reduce vulnerabilities in everything from online purchases to mobile payments.
For merchants, this is particularly beneficial. By keeping sensitive information, such as customers’ card details, outside their own systems, they minimise the risk of security breaches. Tokenisation also helps businesses meet compliance standards, such as PCI-DSS (Payment Card Industry Data Security Standard). With no need to store or transmit sensitive data, companies can lower their security management responsibilities and reduce the overall costs of compliance. Tokenisation facilitates this easier compliance by deferring regulatory requirements across regions. Businesses can then rely on tokenised data instead of managing the security of the original PAN (Primary Account Number).
Enhancing the payment experience with tokenisation
Friction during transactions has long been an issue in finance, costing the industry $2 billion dollars a year in lost payments. Consumers increasingly expect faster and more seamless payments in all aspects of their life, from in store shopping to online purchases.
With tokenisation technology, the payment process becomes faster. Sensitive information no longer needs to be re-entered or verified externally during each transaction. This reduction in data exposure reduces the risk of fraud while maintaining the rapid pace of real-time payments. Overall this creates a secure and safe payment process for businesses while not interrupting the real-time user experience.
Frictionless payments aren’t the only benefit of tokenisation. With customers being more likely to complete purchases when a tokenisation system is in play, with Visa reporting that authorisation rates improve by 2.1% using the technology. This is mostly due to the dynamic card-on-file information that tokenisation provides. It reduces payment failures and ensures a smoother purchase process, with failed payments no longer an issue.
A final example for how tokenisation enhances payment experience both user and provider side can be found in B2B Cross-Border payments. The market is projected to grow significantly, with estimates indicating a 43% increase to reach $56.1 trillion by 2030. The risk of fraud grows with this, alongside increasingly in depth and complex international laws and national regulations, companies need both security, and to be customer facing in their plans. Technologies that secure payments and provide seamless transactions, like tokenisation, are pivotal in supporting this growth by reducing risks and improving efficiency.
The future of payments
As alternative payment methods and RTP networks continue to rise, tokenisation will be crucial in creating a global payments ecosystem that is both secure and frictionless. Visa has issued over 9.5 billion tokens globally, with Mastercard reporting over 50% year-over-year growth in tokenised transactions. This rapid adoption highlights the importance of tokenisation in building secure, efficient payment networks.
By reducing fraud, simplifying security management, and improving the overall customer experience, tokenisation is set to play a leading role in shaping the future of payments. Especially as digital and cross-border transactions become increasingly important.
It’s more than just a security measure. It’s a critical technology that enhances the entire payment ecosystem, making transactions faster, safer, and more efficient for all parties involved.
Gunnar Már Gunnarsson, Co-founder & CTO of PAYSTRAX
Cullen Zandstra, CTO at FloQast on mitigating the risks of AI to deliver benefits to financial services
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There’s a lot of buzz around Generative AI (GenAI). What’s not always heard beneath the noise are the very real and serious risks of this fast-developing AI tech. Let alone ways to mitigate these emerging threats.
Currently, one quarter (26%) of accounting and bookkeeping practices in the UK have now adopted GenAI in some capacity. That figure is predicted to grow for many years to come.
With this in mind, and as we hit the crest of the GenAI hype cycle, it’s critically important that leaders focus closely on the potential risks of AI deployment. They need to proactively prepare to mitigate them, rather than picking up the pieces after an incident.
Navigating the risky transition to AI
The benefits of AI are well-proven. For finance teams, AI is a powerup that unlocks major performance and efficiency boosts. It significantly enhances their ability to generate actionable insights swiftly and accurately, facilitating faster decision-making. AI isn’t here to take over but to augment the employees’ capabilities. Ultimately improving leaders’ trust in the reliability of financial reporting.
One of the most exciting aspects of AI is its potential to enable organisations to do more with less. Which, in the context of an ongoing talent shortage in accounting, is what all finance leaders are seeking to do right now. By automating routine tasks, AI empowers accountants to focus on higher-level analysis and strategic initiative, whilst drawing on fewer resources. GenAI models can help to perform routine, but important tasks. These include producing reports for key stakeholders and ensuring critical information is effectively and quickly communicated. It enables timely and precise access to business information, helping leaders to make better decisions.
However, GenAI also represents a new source of risk that is not always well understood. We know that threat actors are using GenAI to produce exploits and malware. Simultaneously levelling up their capabilities and lowering the barrier of entry for lower-skilled hackers. The GenAI models that power chatbots are vulnerable to a growing range of threats. These include prompt injection attacks, which trick AI into handing over sensitive data or generating malicious outputs.
Unfortunately, it’s not just the bad guys who can do damage to (and with) AI models. With great productivity comes great responsibility. Even an ambitious, forward-thinking, and well-meaning finance team could innocently deploy the technology. They could inadvertently make mistakes that cause major damage to their organisation. Poorly managed AI tools can expose sensitive company and customer financial data, increasing the risk of data breaches.
De-risking AI implementation
There is no technical solution you can buy to eliminate doubt and achieve 100% trust in sources of data with one press of a button. Neither is there a prompt you can enter into a large language model (LLM).
The integrity, accuracy, and availability of financial data are of paramount importance during the close and other core accountancy processes. Hallucinations (another word for “mistakes”) cannot be tolerated. Tech can solve some of the challenges around data needed to eliminate hallucinations – but we’ll always need humans in the loop.
True human oversight is required to make sure AI systems are making the right decisions. We must balance effectiveness with an ethical approach. As a result, the judgment of skilled employees is irreplaceable and is likely to remain so for the foreseeable future. Unless there is a sudden, unpredicted quantum leap in the power of AI models. It’s crucial that AI complements our work, enhancing rather than compromising the trust in financial reporting.
A new era of collaboration
As finance teams enhance their operations with AI, they will need to reach across their organisations to forge new connections and collaborate closely with security teams. Traditionally viewed as number-crunchers, accountants are now poised to drive strategic value by integrating advanced technologies securely. The accelerating adoption of GenAI is an opportunity to forge links between departments which may not always have worked closely together in the past.
By fostering a collaborative environment between finance and security teams, businesses can develop robust AI solutions. They can boost efficiency and deliver strategic benefits while safeguarding against potential threats. This partnership is essential for creating a secure foundation for growth.
AI in accountancy: The road forward
The accounting profession stands on the threshold of an era of AI-driven growth. Professionals who embrace and understand this technology will find themselves indispensable.
However, as we incorporate AI into our workflows, it is crucial to ensure GenAI is implemented safely and does not introduce security risks. By establishing robust safeguards and adhering to best practices in AI deployment, we can protect sensitive financial information and uphold the integrity of our profession. Embracing AI responsibly ensures we harness its full potential while guarding against vulnerabilities, leading our organisations confidently into the future.
Founded in 2013, FloQast is the leading cloud-based accounting transformation platform created by accountants, for accountants. FloQast brings AI and automation innovation into everyday accounting workflows, empowering accountants to work better together and perform their tasks with greater efficiency and accuracy. Now controllers and accountants can spend more time delivering greater strategic value while enjoying a better work-life balance.
Henry Balani, Global Head of Industry & Regulatory Affairs at Encompass Corporation, on meeting the demand for improved risk management, operational efficiency, and customer service with pKYC
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The traditional banking and finance industry is evolving. Processes are experiencing a digital transformation as a result of perpetual Know Your Customer (pKYC). The pKYC approach enables modern banks to continuously update and verify customer information in real time. Banks are moving away from the reliance on periodic reviews. This change is driven by technological advancements. And the increasing demand for dynamic and responsive regulatory compliance mechanisms.
Perpetual KYC
Conventional KYC processes commonly involve periodic reviews of customer information at fixed intervals. These reviews are typically conducted every one, three, or five years. While these reviews are thorough and comprehensive, they are also static. This can result in outdated information, potentially overlooking changes in customer risk profiles or new compliance requirements.
On the other hand, perpetual KYC is dynamic and event driven. Through its continuous and automated approach, pKYC enables financial institutions to address risks and compliance needs in real-time. These risks can be determined by continuously monitoring customer activities. Furthermore, automatically updating profiles in response to specific triggers, including changes in personal information, significant transactions, or alterations in beneficial ownership.
Gaining a competitive advantage with pKYC
By leveraging pKYC, banks, and other regulated financial institutions can take advantage of a range of benefits. These are crucial in the modern digital era to gain a competitive edge. Through continuous monitoring, pKYC enables financial institutions to identify and address potential risks promptly. This real-time approach helps mitigate risks associated with financial crimes. Moreover, it ensures compliance with the latest regulatory standards.
pKYC will lead to operational efficiency and cost reduction. By automating many of the manual processes involved in KYC, pKYC significantly reduces the time and resources needed for compliance. This allows financial institutions to focus their efforts on high-risk cases, rather than conducting blanket reviews for all customers, resulting in substantial cost savings.
This process also enables many banks to improve their customer service and management. It also enhances the customer’s experience. With pKYC, customers are not subjected to frequent, intrusive reviews if their profiles remain stable. This results in a smoother and more positive customer experience, potentially increasing overall customer satisfaction and loyalty. Additionally, automated systems minimise human error and ensure consistency in applying KYC policies. This enhances overall regulatory compliance and reduces the risk of non-compliance penalties.
Perpetual KYC implementation: Challenges and considerations
Implementing a pKYC operating model is not straightforward. It requires the right blend of infrastructure and operating process. Every firm’s pKYC journey and ecosystem will be unique and cut across people, processes and technologies.
Data is central to the success of pKYC as reviews based on event changes (aka event driven triggers) will not be effective if client information is outdated, missing or incorrect. Without consistent access to relevant and accurate client information, pKYC is impossible. Corporate Digital Identity (CDI) is fast emerging as a foundation for ensuring valid customer information is collected for successful pKYC operations.
Being able to leverage this data requires an ecosystem of technology, which may be developed in house, utilising third-party RegTech providers, or a combination of both. This technology should drive how data is stored, structured and accessed so that pKYC triggers can be comprehensively managed. Customer lifecycle management systems (CLMs) are particularly relevant to pKYC as they connect all components along the workflow processes.
Importantly, overarching executive sponsorship is needed to ensure a successful outcome in transformation initiatives. Recognising the structural and cross departmental challenge, influential sponsors will align the multiple stakeholders involved in driving this change and will champion a firm’s pKYC strategy and approach to regulators and other key stakeholders.
Ultimately, pKYC must be future-proof and scalable, ready to adapt in line with business strategy and regulation to keep firms competitive.
The future of pKYC
The adoption of pKYC is growing, driven by regulatory pressures and the increasing complexity of financial crimes. Financial institutions are recognising the benefits of a proactive, real-time approach to compliance and risk management. The move towards pKYC is seen as a necessary evolution to stay ahead in a highly regulated and competitive financial environment.
As the technological landscape continues to evolve, integrating advanced technologies such as blockchain and further developments in AI and ML will likely enhance pKYC systems’ capabilities. Ensuring higher levels of compliance and risk mitigation, these technologies are able to provide more robust and secure mechanisms for customer verification and monitoring.
Blockchain technology can be utilised to further improve the initial customer authentication and validation process. As a result, we can expect improvements and advancements in the quality of customer data collected during initial customer onboarding processes. Financial institutions can then leverage AI-enhanced tools that can identify and collect the necessary attributes during document processing stages. This ensures that pKYC will utilise relevant, accurate, and up-to-date data. Perpetual KYC represents a significant departure from traditional, periodic KYC, as it offers a wide range of benefits in real-time risk management, operational efficiency, and customer experience. Although the implementation of pKYC poses certain challenges, it also provides numerous advantages, making it an increasingly attractive solution for financial institutions aiming to enhance their compliance and risk management frameworks and maintain a competitive edge in a rapidly evolving regulator landscape.
Mayank Sharma, Senior Product Marketing Manager, FinScan on managing the changing face of risk in financial services
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Today, companies are expected to have a holistic view of financial crime risk. They must consider the entire ecosystem of their counterparty relationships including suppliers, vendors, employees, and customers. Failure to do so can result in organisations breaching regulatory requirements, leading to fines and reputational damage. Assessing complex ownership structures, expanding overseas operations, and managing increasing amounts of data places strain on limited resources and capabilities.
Many businesses grapple with multiple systems housing different data and information. Without an integrated view or calculation of risk or the ability to dynamically obtain data to update risk ratings, compliance and onboarding teams are operating ineffectively. What obstacles do businesses face in reaching a comprehensive view of their risk exposure? And how can technological advances help companies take a more proactive approach to financial crime risk management?
The changing face of risk
The last decade has seen a notable shift in how companies are expected to understand and manage risk. Traditionally, the focus was on performing due diligence on new customers during onboarding and at discrete intervals over the customer lifecycle. Today, companies are expected to adopt a more comprehensive perspective and take into account their entire network of counterparty relationships. This includes assessing extended relationships, encompassing customers, beneficial owners, customer’s customers, suppliers, employees, and other stakeholders. This includes distributors and other counterparties.
It also entails understanding the nature of the geographies reached, the products and services used, and from whom they send and receive funds. For example, a community bank might have domestic customers with clear backgrounds but are exposed to indirect sanctions and money laundering risks through the customers’ supplier or vendor relationships based on sanctioned geographies or beneficial owners.
Organisations must monitor sanctions and suspicious activity risk for direct and indirect client relationships. Failure to do so can result in large financial penalties. As seen in the high-profile examples of companies receiving fines for having customer or vendor relationships in sanctioned jurisdictions, and from overall weaknesses in their AML controls. However, the larger issue, from a risk perspective, especially in the context of geo-political changes and complex ownership structures, is even beyond AML and sanctions that bleeds over to reputational risk, i.e., who you are doing business with.
Companies need to develop their financial crimes analysis and risk assessment processes across all risk monitoring systems. They need to make sure they identify all the parties down to the level necessary to determine the compliance risk of doing business. Such an analysis “future proofs” the organisation from undue reputational damage. It also keeps them proactively compliant with sanctions and AML failures.
Process and technology challenges
From a technological standpoint, AML and sanctions risk from customers, vendors, employees, and supply chains are typically distributed across multiple processes. These include onboarding, due diligence, screening, and monitoring, which use different systems that are not integrated. This makes it difficult to get a holistic overview of the risk exposure.
Furthermore, many models are not sufficiently robust and fail to consider the relevant elements at the appropriate times. Most due diligence is performed at the point of onboarding. This presents a snapshot in time but does not accommodate dynamic updates such as alerts to situational changes, potentially impacting a customer’s risk score. There may be periodic Know Your Customer (KYC) updates or event-driven triggers, which influence the risk rating. However, these are typically retrospective, driven by customer interactions, and prioritised by the current rating. As such, low-risk customers who start displaying high-risk activity, which is not part of the trigger events, would not even be subject to an updated review based on that activity. Rather, they would only be reviewed at the next scheduled update for that batch of low-risk customers. This could be some years after they were first onboarded or last reviewed.
Consequently, risk ratings may misclassify customers, pushing up operating costs. A study from McKinsey & Co found that banks changing approaches to reviewing low-risk customers based on trigger events, rather than a schedule, reduced KYC operating costs by 20 percent.
Adopting an integrated and dynamic approach
As the understanding and expectations surrounding risk change, so does the technology supporting risk scoring. Integrated risk scoring dynamically calculates a score from all critical source systems used by compliance and business functions. These include external sources such as news outlets and social media. This provides a robust approach more valuable for financial institutions as it uncovers scenarios not driven by interactions with the customer. This also has an impact, perhaps a more significant one, on a customer risk rating. Adverse media or changes in beneficial ownership, for example, will not necessarily be items brought to the financial institution by the customer. But these can impact the nature of the ongoing customer relationship.
Artificial intelligence (AI) and machine learning (ML) are also likely to play an increasingly important role. As regulators become more open to innovative approaches and technologies, AI and ML will be used to enable real-time checks, such as integrated adverse media or identification checks. However, caution must be exercised regarding explainability, and the decision-making process must be understandable to human operators. Organisations must maintain clear documentation of how AI models work and the criteria they use for risk scoring. They must also monitor for and mitigate any biases in the AI models. They must enusre deployment doesn’t lead to unfair treatment of any ethnic or racial groups. Ultimately, new technology should realise a net reduction in residual risk.
Facilitating a proactive approach to risk
Companies are faced with an increasingly complex risk landscape. Today, they are expected to have a detailed understanding of their business relationships and assess the risks these relationships present. With geopolitical turmoil increasing, a wave of new sanctions, and the resulting implications for AML checks, companies need to ensure they have robust profiling processes and systems. To enable this, businesses should look for integrated solutions that bring together the various indicators and allow for dynamic updates of risk profiles.
FinScan offers advanced Anti-Money Laundering (AML) compliance technology and consulting solutions. Built on decades of experience in data management and proprietary matching technologies, FinScan provides a data-first, risk-based approach to ensure unparalleled accuracy and efficiency in identifying and reducing risk, accelerating AML compliance workflows, and optimising team productivity.
Digital banking offers increased convenience and accessibility. However, this growth also exposes banks to heightened cybersecurity risks. Protecting data and…
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Digital banking offers increased convenience and accessibility. However, this growth also exposes banks to heightened cybersecurity risks. Protecting data and information is crucial to maintaining customer trust and preventing financial loss.
Cybercrime poses a significant threat to the digital banking industry. According to Cybercrime Magazine, cybercrime costs will increase by 15% over the next five years and reach $10.5 trillion by 2025. These attacks target sensitive information and funds, causing substantial damage to banks.
To mitigate these risks, banks must implement robust cybersecurity measures to safeguard digital systems and data.
1. Strong Authentication
The Payment Services Directive (PSD2) mandates strong customer authentication (SCA) to reduce fraud and enhance online payment security. This directive imposes specific requirements on market participants to meet new obligations. The European Banking Authority (EBA) developed regulatory technical standards (RTS) based on the Commission’s authority under PSD2.
The RTS aims to protect consumers and create a level playing field within the evolving financial technology market. To achieve this, the RTS establishes security measures for payment service providers — including banks and other financial institutions — when processing payments or offering payment-related services.
2. Encryption
Unencrypted data is a common cyber threat. Hackers can easily access this data type and give severe consequences for banks. According to Statista, the average cost of a data breach worldwide is $4.45 million dollars. However, data breaches not only cause substantial financial loss for recovery and ransom payments but also damage a bank’s reputation.
To prevent these issues, all digital banking data must be encrypted. This safeguards information and makes it difficult for cybercriminals to access even if stolen. Encryption transforms data into a coded format that requires a specific key to decipher. Only individuals with the correct key can view the original data.
Encryption involves using an algorithm and a key to convert plain data into encrypted data. The original data can only be recovered by decrypting the ciphertext with the correct key.
3. Regular Cybersecurity Audit
A security audit is a thorough examination of an organisation’s IT infrastructure. This process verifies the effectiveness of security policies and procedures. Security audits assess how well an institution’s cybersecurity program operates. This includes reviewing policies, testing controls, and checking compliance with industry standards and regulations.
Banks and financial institutions face increasingly complex cyber threats. Regular security audits help identify vulnerabilities in systems. By discovering weaknesses, banks can strengthen defences with firewalls, antivirus, and antimalware software. A cybersecurity audit should be conducted by an independent expert to ensure objectivity.
4. Employee Training
The World Economic Forum reports that 95% of cyberattacks involve human error. This means hackers often exploit employee mistakes. They use tactics like phishing to deceive employees into revealing sensitive information. This can lead to data breaches and financial loss. For example, employees might click on malicious links, disclose confidential data, or leave devices unattended.
Therefore, bank employees must have training to recognize that cyberattacks are a constant threat. Moreover, the consequences of a breach can be severe for employees, customers, and the bank’s reputation. Cybercriminals operate in a lucrative industry, for that reason, it is imperative to equip employees with the knowledge to safeguard against these threats.
5. Incident Response Planning
An incident response plan is a formal document approved by bank leadership to guide the organisation before, during, and after a potential or confirmed security incident. The plan aims to reduce the impact of security events, limiting operational, financial, and reputational damage.
A successful incident response plan should be established before a security attack occurs and assigned to specific team members. IBM research shows companies with well-developed and tested response plans save an average of $2.66 million compared to those without such protocols.
To create an effective incident response plan, banks can reference established frameworks. For specific incident handling steps, The National Institute of Standards and Technology’s SP-800-61 and SANS’s Incident Handlers Handbook provide detailed blueprints. Aligning the incident response plan with these resources ensures a focused and effective approach to managing cybersecurity incidents.
Importance of Cybersecurity Measures
The increasing reliance on digital platforms exposes individuals and organisations to growing cybersecurity risks. Malicious actors exploit security weaknesses to steal personal information and compromise digital assets. Forbes reported a staggering increase in cyberattacks in 2023, impacting over 343 million people, with data breaches soaring by 72 percent from 2021 to 2023. These striking figures highlight the urgent need for state-of-the-art cybersecurity in digital banking.
WatchGuard’s Threat Lab cybersecurity research team forecast headline-stealing hacks involving LLMs, AI-based voice chatbots and VR/MR headsets. They also assess…
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WatchGuard’s Threat Lab cybersecurity research team forecast headline-stealing hacks involving LLMs, AI-based voice chatbots and VR/MR headsets. They also assess the impact of the war on talent, AI spear phishing and QR codes.
Watchguard leading on Cybersecurity
WatchGuard Technologies, a global leader in unified cybersecurity, offers an annual batch of predictions covering the most prominent attacks and information security trends that the WatchGuard Threat Lab research team believes will emerge each year. This year, these include malicious prompt engineering tricks targeting large language models (LLMs), managed service providers (MSPs) doubling down on unified security platforms with heavy automation, ‘Vishers’ scaling their malicious operations with AI-based voice chatbots, hacks on modern VR/MR headsets, and more…
“Every new technology trend opens up new attack vectors for cybercriminals,” said Corey Nachreiner, chief security officer at WatchGuard Technologies. “In 2024, the emerging threats targeting companies and individuals will be even more intense, complicated, and difficult to manage. Therefore, with an ongoing cybersecurity skills shortage, the need for MSPs, unified security, and automated platforms to bolster cybersecurity and protect organisations from the ever-evolving threat landscape have never been greater.”
Cybersecurity predictions
The following is a summary of the WatchGuard Threat Lab team’s top cybersecurity predictions for 2024:
Prompt Engineering Tricks Large Language Models (LLMs)
Companies and individuals are experimenting with LLMs to increase operational efficiency. However, threat actors are learning how to exploit LLMs for their own malicious purposes as well. During 2024, the WatchGuard Threat Lab predicts that a smart prompt engineer ‒ whether a criminal attacker or researcher ‒ will crack the code and manipulate an LLM into leaking private data.
MSPs Double Down on Security Services Via Automated Platforms
There are approximately 3.4 million open cybersecurity jobs, and fierce competition for available talent. More SMEs will turn to trusted managed service and security service providers, known as MSPs and MSSPs, to protect them in 2024. To accommodate growing demand and scarce staffing resources, MSPs and MSSPs will double down on unified cybersecurity platforms with heavy automation using artificial AI and Machine Learning.
AI Spear Phishing Tool Sales Boom on the Dark Web
Cybercriminals can already buy tools on the underground that send spam email, automatically craft convincing texts, and scrape the Internet and social media for a particular target’s information and connections. However, a lot of these tools are still manual and require attackers to target one user or group at a time. Well-formatted procedural tasks like these are perfect for automation via AI and machine learning. This makes it likely that AI-powered tools to combat cybersecurity will emerge as best sellers on the dark web in 2024.
AI-Based Vishing Takes Off in 2024
Voice over Internet Protocol (VoIP) and automation technology make it easy to mass dial thousands of numbers. Once a potential victim has been baited onto a call, it still takes a human scammer to reel them in. This system limits the scale of vishing operations. But in 2024 this could change. The combination of convincing deepfake audio and LLMs capable of carrying on conversations with unsuspecting victims will greatly increase the scale and volume of vishing calls. What’s more, they may not even require a human threat actor’s participation.
VR/MR Headsets Allow the Recreation of User Environments
Virtual and mixed reality (VR/MR) headsets are finally beginning to gain mass appeal. However, wherever new and useful technologies emerge, criminal and malicious hackers follow. In 2024, cybersecurity researchers forecast that either a researcher or malicious hacker will find a technique to gather some of the sensor data from VR/MR headsets to recreate the environment users are playing in.
Rampant QR Code Usage Results in a Headline Hack
Quick response (QR) codes provide a convenient way to follow a link with a device such as a mobile phone. They have been around for decades, but mainstream usage has exploded in recent years. Furthermore, Threat Lab cybersecurity analysts expect to see a major, headline-stealing hack in 2024 caused by an employee following a QR code to a malicious destination.
As digital payments continue their rapid ascent, understanding the accompanying cybersecurity challenges has never been more critical. Furthernore, with Statista…
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As digital payments continue their rapid ascent, understanding the accompanying cybersecurity challenges has never been more critical. Furthernore, with Statista forecasting a robust 9.52 percent annual growth rate for digital payments from 2024 to 2028, the urgency to address these security concerns intensifies.
While this growth brings unparalleled convenience, it also introduces new security vulnerabilities that must be addressed. Cybersecurity is fundamental in safeguarding confidential data against hacking, fraud, and data breaches. Implementing effective cybersecurity measures can also maintain trust between businesses and clients while preventing financial loss. To optimise cybersecurity, identifying the current threats to digital payment systems is a must for businesses and consumers.
Current Cybersecurity Threats
Digital banks face various threats that continually evolve as technology advances. By addressing these challenges head-on, banks can protect their users and continue the growth of digital payment.
Many types of cyber threats can disrupt digital payment systems:
Phishing attacks: These attacks use deceptive emails, phone calls, or texts to trick victims into revealing personal information, such as login credentials and financial details. The scam can lead to other types of cyber threats.
Malware: Malicious software that infiltrates systems to steal data, monitor activities, or lock accounts. Various forms of malwares have different functions, such as Trojans, Worms, and Spyware.
Man-in-the-Middle (MitM) Attacks: intercept communications between the user and the bank allowing attackers to steal sensitive information or funds.
Data breaches: Unauthorised access to digital bank databases exposes vast amounts of sensitive information, including personal and financial data.
Ransomware: It is an attack that employs malware to infiltrate computer systems to steal data, monitor activities, or lock accounts. The attackers then demand payment and keep disrupting the devices/websites until they are paid.
Credential stuffing: Attackers use stolen usernames and password combinations from other breaches to gain unauthorised access to accounts.
DDoS and DoS attacks: Distributed Denial-of-Service (DDoS) attacks overwhelm the bank’s servers, making online services unavailable to customers. Unlike the Denial-of-Service (DoS) attack where a single source is used to flood the target, DDoS use multiple sources of compromised devices (botnets).
Insider threats: Employees or contractors with access to sensitive information may intentionally or unintentionally cause data breaches or other security incidents.
Social engineering: Manipulating individuals into divulging confidential information through psychological manipulation.
Zero-Day Exploits: Attacks that exploit previously unknown vulnerabilities in software or hardware before patches are available.
Cybersecurity Measures
Encrypting data is essential to convert the personal information into a secure format. This encrypted data can only be accessed with the correct key or description. This ensures that the data remains secure and unreadable after interception.
Multi-Factor Authentication (MFA) adds a layer of security by requiring some form of verification before granting access to the platform. Tokenisation replaces critical payment data with a unique or random token that cannot be hacked once intercepted.
Biometric verification, such as fingerprint and facial recognition, provides additional security by utilising unique physical characteristics. These include the shape of the face and the outline of a fingerprint, both of which are difficult to replicate.
Financial institutions have also innovated to improve cybersecurity by implementing artificial intelligence (AI). For example, JPMorgan Chase has implemented an AI-driven fraud detection system. This application is used for monitoring transaction activity in real-time. It can also detect potential threats or fraudulent transactions using the data analytics tool.
Regulatory Requirements
Financial companies are obligated to meet regulatory compliance. It is important to build customers’ trust and avoid legal or financial penalties. For global financial institutions, regulatory issues might be more complex as each country has its version of rules. As cyber threats evolve, regulators continuously update and enforce these requirements to address new challenges in digital payment systems.
For instance, UK regulations have set strict rules to ensure the security of digital payments. These include data protection measures, and companies that do not prioritise cybersecurity will face substantial fines. Similar regulations have been implemented across European Union (EU) Member States, compelling financial institutions to enhance cybersecurity to create a safe digital payments environment for consumers.
With the growing popularity of digital payments, cybercriminals have found a lucrative target. Cybersecurity data breaches rose sharply by 72%…
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With the growing popularity of digital payments, cybercriminals have found a lucrative target. Cybersecurity data breaches rose sharply by 72% in 2023 compared to the previous record-breaking year. This shows the need for financial technology companies to implement strong banking security.
While digital payments offer benefits, businesses must protect themselves and their customers from cyber threats. Understanding the common cyber threats and implementing effective countermeasures are key to long-term success.
The Importance of Cybersecurity for Digital Transactions
With the increasing reliance on online platforms for financial activities, the risk of cyberattacks has grown exponentially. These attacks can lead to significant financial losses, damage to reputation, and erosion of customer trust. From identity theft to data breaches, the consequences of compromised security can be severe.
To prevent such consequences, cybersecurity measures are required for every financial institution. By applying cybersecurity best practices such as encryption, strong authentication, and regular security audits, organisations can protect customer data, prevent fraud, and maintain operational resilience.
Threat Landscape
Cybercriminals employ various tactics to exploit vulnerabilities in digital systems. Phishing attacks, a common method, deceive users into divulging sensitive information through fraudulent emails or websites. Another prevalent threat is ransomware, where cybercriminals encrypt a victim’s data and demand payment for decryption.
Additionally, unauthorised access to accounts through stolen credentials can lead to financial loss. These cyber threats highlight the need for a security framework to protect digital transactions against malicious activities.
Best Practice 1: Encryption
Cybercriminals can easily exploit vulnerable systems, leading to substantial financial losses and reputational damage. A data breach can cost millions of dollars to rectify, including expenses for recovery and ransom payments. A recent IBM report indicates that the average global cost of a data breach exceeds $4.45 million.
Encryption safeguards sensitive information by transforming it into an unreadable format, accessible only to authorised parties possessing the correct decryption key. This cryptographic process employs complex algorithms and keys to safeguard data integrity and confidentiality.
Best Practice 2: Multi-Factor Authentication
Cybercriminals can easily steal passwords and pins through brute-force attacks, systematically testing numerous combinations until successful. Multi-factor authentication (MFA) offers a robust defence against this threat.
Requiring users to provide multiple forms of identification strengthens account security. This authentication combines different types of verification. This includes information only the user knows, like passwords, items the user possesses, such as security tokens, and unique physical traits, like fingerprints.
By requiring multiple verification steps, banks and financial institutions create a formidable barrier against unauthorised access to sensitive information and funds. Additionally, multi-factor authentication enhances user account management by requiring unique authentication factors for each individual.
Best Practice 3: Employee Training
Organisations with regular cybersecurity training experience a 40% reduction in security incidents compared to those without, according to This emphasis on employee education is justified as human error remains a primary target for cybercriminals.
Hackers frequently exploit employee vulnerabilities through tactics like phishing, social engineering, and other deceptive methods. By training employees to recognize these threats, financial institutions can mitigate the risk of data breaches and financial losses.
Such incidents can result in substantial financial losses and damage to an institution’s reputation. Consequently, comprehensive cybersecurity training is essential for all bank employees to mitigate these risks.
Best Practice 4: Regular Security Audits
A security audit is an evaluation of an organisation’s digital infrastructure, designed to identify vulnerabilities that could compromise digital transactions. This process involves examining security policies, testing safeguards, and ensuring compliance with industry regulations.
Given the escalating complexity of cyber threats, financial institutions must prioritise regular security audits. Banks can uncover weaknesses before malicious actors exploit them by scrutinising systems and processes.
Regular security audits empower organisations to proactively strengthen defences by implementing essential safeguards such as firewalls, antivirus software, and antimalware solutions. To ensure impartiality and objectivity, it is essential to engage an independent expert to conduct these assessments.
Best Practice 5: Incident Response Planning
As the frequency and sophistication of cyber threats continue to rise, the need for robust defences becomes increasingly critical. Safeguarding digital transactions requires a proactive approach, including a well-defined incident response plan.
An incident response plan is a crucial component of any organisation’s cybersecurity strategy. This formal document outlines strategies for preventing, detecting, and responding to security breaches that could compromise financial data. By establishing clear protocols and assigning specific responsibilities, banks can minimise the impact of cyberattacks and protect both their reputation and customers’ assets.
To be effective, an incident response plan must be established in advance and assigned to specific teams. By following established frameworks, such as those provided by the National Institute of Standards and Technology (NIST) and SANS, organisations can develop comprehensive plans. These resources offer detailed guidance on handling various types of security incidents to ensure a coordinated and efficient response.
Conclusion
Protecting digital transactions requires a multi-faceted approach. Implementing cybersecurity measures is essential for protecting sensitive financial data and maintaining customer trust.
Encryption and multi-factor authentication are foundational elements of a strong security posture. Encryption safeguards data by rendering it unreadable to unauthorised individuals, while multi-factor authentication adds an extra layer of protection by requiring multiple forms of verification. These are just two examples of critical best practices financial institutions should adopt.
Financial institutions must prioritise cybersecurity to maintain customer trust and protect their bottom line. By investing in advanced security measures and staying vigilant against emerging threats, organisations can effectively mitigate risks and ensure the integrity of digital transactions.
From AI to multi-factor authentication, here are 7 cybersecurity solutions keeping financial institutions’ critical data secure.
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Data belonging to 20.4 million UK citizens was affected by cyberattacks made against financial institutions at the end of 2023. This represents a 143% increase from the 8.4 million individuals affected in the previous year. The demand for robust cybersecurity is ever-increasing in financial institutions.
Financial Institutions encompass a wide range of businesses dealing with financial and monetary transactions, including banks, insurance companies, and brokerage firms. These institutions are pivotal for a functioning capitalist society, simplifying transactions, enabling individuals and entities to seek investment or lend money, and assisting in managing assets.
The increasingly digitalised nature of the economy, including the rise of online-only financial institutions like challenger banks, has accelerated the development of financial technologies and their adoption in the market. As a result, Software as a Service (SaaS) for finance, such as digital banking, electronic payment, online investment, and other online-based services, makes financial services more accessible to the consumer. But, with the ease of access technologies provided, new challenges have also emerged, especially regarding cybersecurity.
Financial institutions are enticing targets for cybercriminals. Therefore, cybersecurity has become integral to banking security in protecting data from malicious attacks.
Here are seven top cybersecurity solutions to secure data from online threats.
1. AI-Powered Threat Detection
The ability for AI models to perform pattern recognition on large amounts of unstructured data is opening up an exciting new frontier in threat detection for cybersecurity teams. AI tools can potentially flag subtle differences, anomalies, and patterns that could point to a zero-day threat or the presence of a bad actor in the system.
Some industry experts believe that AI-powered threat detection will be pivotal in helping cybersecurity teams respond to rapidly evolving cyberattack strategies that are increasingly difficult to combat — somewhat ironically, this uptick in the frequency and sophistication of attacks is at least partially due to the availability of AI tools, which hackers are also putting to use.
AI’s adaptive learning and advanced recognition capabilities enable automated responses to threats and can predict future risks by analysing past patterns. This helps reduce false positives and saves security teams time on assessments.
2. Multi-Factor Authentication
Multi-factor authentication has quickly become the standard in security and identity protection as more and more people bank, shop, and administer their lives entirely online. Put simple, it’s a multistep account login in which more information besides username and password must be provided.
Typically referred to as “something you have, something you know”, multi-factor login procedures drastically reduce account hacking, allowing security teams to detect suspicious activity that occurs in the logging processes.
3. DDoS Mitigation
Distributed Denial of Service (DDoS) is a coordinated cyberattack that overwhelmingly sends a request to the server simultaneously, which makes the server slow down or even go offline. DDoS mitigation is important for banking service security to prevent the interruption of vital services.
Cynersecurity teams can perform DDoS mitigation by implementing a load balancer, restricting requests from certain places, and blocking communication from outdated or unused ports, protocols, and applications.
4. Compliance
Compliance is vital to both ensure the security of systems and organisations against cyber attack, but also to prevent legal penalties and repercussions if an organisation is found to be in breach of existing regulations. These regulations ensure that an organisation’s cybersecurity set up is in line with the security and data protection laws in the countries where it operates, with the end goal of mitigating risk to the consumer — or just people in general whose data is collected and kept by the company.
There can be serious legal and financial risks associated with non-compliance — tied to both finance and cybersecurity. For example, in 2021, Natwest was fined over £264 million by the FCA for its extended failure to identify and prevent money laundering. Since the FCA was established, there has not been a year when its total fines issued have been less than £1 million. In the UK, other financial and cybersecurity compliance regulations are DPA 2018, UK GDPR, NIS regulations, and the Computer Misuse Act 1990.
5. Database Activity Monitoring
Database Activity Monitoring refers to any set of tools that monitors and analyses database activity. The goal of this monitoring is to flag and report deceptive, illegal, or undesired behaviour taking place within a system. Ideally, these tools run and operate without any serious impact on user experience.
Because most databases don’t monitor or flag suspicious activity by default, unless you have a tool that handles activity monitoring, making third party solutions a necessity in many cases. According to monitoring software solutions vendor Cyral, most systems also don’t collect enough data to enable “a full forensic investigation of historical breach events.” Also, databases that do often log and store this information inside the database itself. Any attacker that gains access to the database can then, supposedly, have write access to the full collection of tables (as is often the case), meaning they can easily delete any activity rows associated with their presence and theft of data.
6. SQL Injection Prevention
SQL injection is a code injection technique attackers use to steal, spoof, and manipulate data. An effective SQL injection attack can result in attackers gaining unapproved access to sensitive data like including credit card information, PINs, or other private information. In banking security, a failure to prevent SQL injection can result in attackers altering balances, voiding transactions, and even transferring money to their bank accounts.
Cyberattackers inject malicious SQL code into the backend of a target system when they discover defenceless user inputs in a web application or web page. The hackers can then use this opening to locate the IDs of other users within the database, impersonating these users — usually those with data privileges such as the database administrator — to run malicious code within the system.
7. Regular Risk Assessment and Training
Perhaps most importantly, the best defence against the rising tide of cybercrime is a cybersecurity conscious culture. Financial institutions should conduct regular risk assessments manually to identify potential vulnerabilities and threats to their systems and networks.
They should regularly evaluate and revise systems and networks based on analytics and assessments to prioritise cybersecurity initiatives and protect vital assets. Security teams shouls also conduct periodic security awareness training, which can strengthen cyber-readiness among finance personnel. This is particularly important given the rise in generated AI-driven phishing campaigns and other technologically democratised forms of cyber crime.
Case Study – Cybercriminals in UK Businesses
An investment article from IFA magazine reported 300,000 cybersecurity breaches in finance institutions across the UK in 2022 alone, making them the second-highest number of data breaches from all industries after the IT sector. Reports estimate losses in the region of £27 billion per year, with small businesses in the UK affected the most by cyberattacks, usually phishing.
The UK authority encourages its citizens to be more aware of the possibility of cyberattacks, especially phishing and fake charity emails, as online threats are growing exponentially. Ledi Sallilari from the SEO consulting firm Reboot also suggested that more complex passwords can help prevent account breaches.
The rapid expansion of internet usage brings new challenges for cybersecurity. Proper knowledge and awareness about cyber criminals should become mandatory for all Internet users to protect their online data.
Financial institutions, responsible for managing customer funds, need to implement strong cybersecurity measures. With more secure backend systems, they can protect assets and maintain customer trust in an increasingly digital world.
AI, real-time monitoring, and machine learning are helping fintech firms stay ahead of growing cyber threats.
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The financial sector faces a growing threat—cybercrime.
Cybersecurity Ventures predicts a significant rise in cybercrime costs, with the total impact of hacks, breaches, and data theft potentially reaching as high as $10.5 trillion a year by 2025. As attacks become more common and more severe, mitigating these risks and preventing fraud is paramount for financial institutions and financial technology companies alike.
Luckily, ongoing advancements in technology offer fintech organisations a powerful arsenal of weapons to combat cybercrimes. Adaptive fraud prevention systems use artificial intelligence (AI) to detect and prevent fraudulent activity in real-time. These intelligent systems continuously learn from new data, allowing them to identify evolving patterns and improve cybersecurity.
Introduction to cyber fraud protection
Cybersecurity is crucial in the financial services industry, where sensitive financial data and transactions are a prime target for cybercriminals. Moreover, cyber attacks can inflict significant financial losses, not just through direct theft but also via hefty regulatory fines, legal costs, and reputational damage.
Financial institutions have a responsibility to safeguard customer trust by implementing robust cyber fraud protection measures. This includes advanced technologies like network security, intrusion detection systems, and malware protection.
By securing financial transactions and customer data, these measures not only deter cyberattacks but also mitigate their impact, fostering customer confidence in the bank’s security posture.
Common types of Cyber fraud
The financial sector occupies a bull’s-eye for cybercriminals, ranking second only to healthcare in global cybercrime costs according to theIBM Cost of a Data Breach Report 2023. Financial institutions face an average loss of $5.9 million per cyber incident, highlighting the critical need for robust cyber fraud protection measures.
These attacks come in various forms. One of the most common isphishing scams. These are attempts to trick people into surrendering sensitive information. Meanwhile, ransomware attacks aim to disrupt operations or extort money by encrypting critical data. Distributed Denial-of-Service (DDoS) attacks overwhelm systems with traffic, making essential services unavailable to legitimate customers.
Advanced cybersecurity technologies
The fight against cyber fraud necessitates sophisticated tools, and advanced technologies like AI and machine learning (ML) are playing an increasingly crucial role.
AI fraud detection uses ML algorithms to identify fraudulent activities within vast datasets. These algorithms are trained to recognise patterns and anomalies that deviate from typical user behaviour and transaction patterns. Once the patterns are identified, attackers can be purged from the system before they have a chance to steal anything of value. Cybersecurity systems powered by ML can drastically reduce the amount of time bad actors spend inside a system.
ML algorithms excel at identifying patterns and trends that might signal potential fraud. Also, by analysing big data, these algorithms can adapt quickly to evolving fraud tactics.
They can detect and alert security teams within seconds of suspicious behaviour, such as unusual purchases or login attempts from unfamiliar locations. Thanks to continuous data analysis, businesses can gain an immediate advantage, allowing them to swiftly identify and respond to suspicious activity, ultimately minimising potential losses.
Case studies
The financial sector is actively exploring the potential of AI to combat cyber fraud. Mastercard’s Decision Intelligence technology exemplifies this trend. By analysing historical spending habits, this AI solution creates a personalised baseline for each cardholder’s behaviour.
This approach is a significant improvement over traditional, one-size-fits-all methods, which often lead to false declines. AI’s contextual analysis of transactions allows it to bypass common triggers for false positives, ultimately enhancing fraud detection accuracy.
Future prospects
The future of cyber fraud protection hinges on the continued evolution of technology. One promising area lies in adaptive technologies, such as behavioural biometrics. Additionally, these systems move beyond static passwords or fingerprints, creating a unique user profile based on a person’s interaction patterns.
These patterns are ‘behavioural fingerprints’ that include typing style, mouse movements, and even how an individual holds their phone. Over time, the system learns user habits, building a digital identity that can detect deviations indicative of unauthorised access.
This approach is particularly effective because it’s nearly impossible for hackers to replicate one’s unique behavioural traits, even if they steal the password. This adds a crucial layer of security that traditional methods cannot provide.
The digital banking industry faces cybersecurity challenges. A Statista report shows a 10 percent jump in global malware attacks in…
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The digital banking industry faces cybersecurity challenges. A Statista report shows a 10 percent jump in global malware attacks in 2023, reaching 6.06 billion incidents.
Cybercriminals are growing more skilled, leading to more frequent data breaches that expose vulnerabilities in banking security. Moreover, effective risk management and strong network protocols are essential to securing digital banking operations.
Introduction to Cybersecurity in digital banking
As online transactions become the norm, strong cybersecurity measures become more crucial. Banks keep sensitive financial data and handle high-value transactions, making them prime cyberattack targets.
Effective cybersecurity is a multi-layered approach. Also, it combines advanced technology, strict policies, and constant monitoring to fight cyber threats. These security measures shield not only a bank’s finances but also customer personal information.
For that reason, cybersecurity is the foundation of trust and reliability in finance. Without strong security protocols, the balance between innovation and managing risk is disrupted, potentially shaking customer confidence in digital banking.
Early Cybersecurity practices
The rise of the internet gave birth to a new genre of malicious activity. Cybercriminals emerged to target this new frontier. They launched worms, malware, and phishing attacks.
In response to these escalating threats, the 1990s saw the introduction of firewalls and antivirus software. Additionally, these early security measures acted as barriers between networks to protect systems from unauthorised access.
Cybercriminals constantly develop new viruses and threats. Likewise, antivirus companies continuously create new software patches and signature updates to stay ahead. Despite that, the possibility of new threats slipping through these defences remains a challenge.
Technological advancements
Fraud is a major challenge for financial institutions. Artificial intelligence (AI) has emerged as a powerful weapon in the fight against this threat.
This technology excels at detecting various types of fraud. AI algorithms can detect suspicious activity in real time, helping prevent fraud before it happens.
AI solutions go beyond simple detection. By creating detailed profiles of each customer and tracking their activities, AI can predict potential risks and prevent fraud proactively.
Current Best Practices
A strong foundation is critical to banking security. This includes constantly checking for weaknesses through risk assessments. Digital banks must update their security protocols regularly to keep pace with changing risks. Collaborations with other financial institutions and government agencies help banks stay informed about the latest threats and how to respond.
Data classification is also essential. Banks need strict controls on who can access sensitive information. Employee security training must be regular to make them aware of threats.
Case Studies
The digital bank Starling Bank partnered with cybersecurity firm HackerOne in 2019. This partnership created a streamlined system for anyone to report weaknesses found in its apps and website.
The initiative initially focused on specific areas and common vulnerabilities. This collaboration revealed valuable insights into weaknesses often missed during standard testing. The project’s findings allowed Starling to develop automated detection tools that proactively prevent security issues.
Future Trends
A report byStatista predicts the global cybersecurity market will hit $271.90 billion in 2029, highlighting the growing need for strong defences in digital banking. While still new, quantum computing presents a future hurdle. Its ability to crack current encryption methods means new, quantum-resistant cryptography needs to be developed for banking security.
However, machine learning and AI are expected to be adopted more widely in cybersecurity. Beyond just reacting to threats, financial institutions will also increasingly focus on proactive threat hunting. This means identifying and stopping potential vulnerabilities before they can be exploited.
The FinTech sector has changed how we manage our money. From mobile banking apps to robo-advisors, FinTech offers a new…
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The FinTech sector has changed how we manage our money. From mobile banking apps to robo-advisors, FinTech offers a new level of convenience and efficiency. But with this convenience come challenges and cybersecurity responsibilities: safeguarding the vast amount of sensitive financial data entrusted to these platforms.
Cybersecurity is no longer an afterthought for FinTech companies; it’s an essential foundation for their success. Breaches exposing financial information can have devastating consequences, not just for the companies involved but for their users as well.
Understanding these cyber threats is crucial for FinTech companies aiming to safeguard their operations and customer data. Here are the top 10 cybersecurity risks FinTech firms must be aware of in 2024.
1.Phishing Attacks
Phishing attacks trick people into divulging personal information. Cybercriminals often pose as legitimate companies through emails, texts, or phone calls. They llure victims into clicking malicious links or revealing passwords.
Phishing attacks significantly threaten financial companies because they target the human element rather than technological weaknesses. Hackers impersonate trusted sources like banks or colleagues to trick employees into revealing sensitive information or clicking malicious links. It can lead to data breaches, financial losses, and account takeovers.
2. Ransomware
Ransomware attacks involve cybercriminals holding sensitive data hostage and demanding a ransom from the victim. FinTech companies are particularly vulnerable to ransomware attacks because they rely on digital systems and customer financial data.
These attacks can impair operations, damage reputations, and lead to significant financial losses. They can be devastating, as there is no guarantee that paying the ransom will result in the safe return of the data.
3. Insider Cybersecurity Threats
FinTech companies may face a unique cybersecurity threat from their employees, known as insider threats. These insiders can be malicious, accidentally negligent, or even tricked into compromising sensitive data. Malicious insiders might steal financial information or sabotage systems for personal gain. Negligent insiders could leave data exposed or fall victim to phishing scams, unintentionally giving away access.
4. DDoS Attacks
Distributed Denial of Service (DDoS) attacks overwhelm online systems with traffic, making them inaccessible to legitimate users. FinTech firms are attractive targets for these attacks because they offer multiple entry points (banking systems, online accounts) and prioritise constant service availability.
DDoS attacks can severely hurt a FinTech company’s reputation and finances by causing downtime, raising security concerns among customers, and potentially leading to data breaches during the distraction.
5. Malware
FinTech companies are prime targets for malware attacks, accounting for 19 percent of all attacks and suffering nearly US$18.3 billion in losses in 2017. While the number of traditional banking malware strains is decreasing, it doesn’t represent a decline in overall threat. Instead, attackers are developing more sophisticated malware that uses techniques like obfuscation and slow, staged attacks to bypass antivirus detection.
6. Data Breaches
FinTech companies are under fire due to data breaches exposing sensitive financial information. Hackers exploit security flaws to steal user data, leading to financial losses, identity theft, and damaged trust. To combat this, strong encryption methods like end-to-end encryption and tokenisation can scramble data, making it useless to attackers.
7. Mobile Security Risks
Despite offering convenient access to financial services, mobile apps are a double-edged sword for FinTech companies. These apps are vulnerable due to their popularity, making strong security practices essential. Regular security updates, secure coding from the start, and robust data encryption during transmission are crucial to patching weaknesses.
8. Third-Party Cybersecurity Risks
The reliance on third-party vendors for services and integrations creates a security blind spot for FinTech firms. To address this, thorough vetting through due diligence and vendor risk assessments is crucial before forming partnerships.
9. API Vulnerabilities
FinTech companies rely heavily on Application Programming Interfaces (APIs) to enhance customer interfaces and share information across systems. While APIs are essential for data exchange, they also open doors for cyberattacks.
To fortify their defences, FinTech companies need to focus on secure API design with solid authentication methods (like OAuth or API keys), constant monitoring, and regular security assessments to identify and fix weaknesses before they become exploited.
The use of artificial intelligence (AI) and machine learning (ML) has increased in FinTech for decision-making processes. While beneficial, these systems also present risks if they make inaccurate decisions based on incorrect data. Rigorous testing and monitoring of AI and ML systems are necessary to minimise these risks.
Steps to mitigate threats
The cybersecurity threats facing FinTech in 2024 are varied and complex. FinTech firms must prioritise cybersecurity to protect customer data and maintain trust. By researching technology usage, training employees on cybersecurity, regularly monitoring suspicious activity, and building advanced security systems, FinTech companies can improve their defences against these evolving threats.
With more financial transactions shifting to digital platforms, having proper cybersecurity measures becomes a priority.
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Moreover, data is at the heart of every fintech company, which makes them attractive targets for hackers and malicious actors.
Financial technologyhas created new opportunities for customers and businesses in the finance industry. Individuals can now borrow, transfer, save, and invest from the convenience of their homes. Also, the growth of the industry is massive, with fintech revenues projected to grow sixfold from $245 billion to $1.5 trillion by 2030.
However, following that growth are security risks associated with it. Accounting services firm BPM predicts that cybersecurity attacks aimed at fintech companies will only continue to grow in 2024 and beyond. Furthermore, these attacks can end in monetary losses, reputational damage, and brand erosion.
To prevent such cases,fintech security leaders globally have implemented cybersecurity measures.
1. Stripe
Founded in 2010 by Patrick and John Collison, Stripe specialises in payment processing software and application programming interfaces (APIs).
Based in South San Francisco, California, the company offers top-tier encryption and secure transmission protocols. The protocols, which adhere to the PCI DSS standards, are in place to ensure the security of credit and debit card data.
Launched in 2018, Stripe’s innovative tool Radar detects and blocks fraudulent transactions. After its 2.0 update in 2018, the company claimed it helped reduce fraud rates byan additional 25% for its users.
With other services like Stripe Terminal, Stripe Tax, and Stripe Capital, Stripe has become a trusted name in online payment processing. It powers payments for major companies like Amazon, Google, and Shopify, all of which demand high-security standards.
2. Square
Owned by Block, Inc., Square was launched in 2009 by CEO Jack Dorsey and co-founder Jim McKelvey. Square offers an all-in-one financial services platform, including customer booking, e-commerce, payroll, shifts, loan financing, and banking.
In 2021, Square received FDIC approval from the Utah Department of Financial Institutions. Additionally, with end-to-end encryption, regular vulnerability assessments, and secure data storage, Square reached Level 1 PCI DSS certification. This is the highest level for payment processor certification.
3. PayPal
Launched in 2000 from the merger of Confinity and X.com, PayPal is a leader in secure online transactions.
Acquired by eBay in 2002, PayPal became the leading global payment application after eBay discontinued its Billpoint service. It has arguably outpaced competitors like Citibank C2IT, Yahoo! PayDirect, and BidPay from Western Union.
PayPal uses advanced encryption technologies and multi-factor authentication to protect user data. With its continuous monitoring and fraud prevention mechanisms, the company is compliant with industry standards.
According to the company, its fraud detection tools are informed by data from 1 billion monthly transactions. It claims that the toolgets smarter with each transaction.
4. Ant Financial (Alipay)
Ant Financial’s Alipay, is the second-largest international payment processor after Visa.
Founded in 2014 by Jack Ma as an affiliate of Alibaba, Ant Financial offers a range of products. Available services include electronic payment processing, banking, and mobile payments through brands like Yu’ebao, Huabei, and Xianghubou.
Ant Financial combines advanced cybersecurity measures such as AI-driven fraud detection, biometric authentication, and data encryption. Alipay itself also holds the internationally recognized ISO/IEC 27001 cybersecurity certification.
Used by more than 1.2 billion users, Ant Financial is protected by its AI-powered risk engine AlphaRisk. With the tool, Alipay’s fraud loss rate has been kept under0.64 in 10 million, way lower than the industry average.
5. Plaid
Established in 2013 by Zack Perret and William Hockey, Plaid is an embedded financial platform. It facilitates secure online payments and transactions by connecting users’ bank accounts to finance applications.
Plaid ensures authorised access to bank data through secure bank portals, which eliminates the need for user credentials. In October 2020, Plaid introduced “Plaid-Link,” a service that enables real-time payments for loans, insurance, and wages. It securely connects 12,000 US financial institutions, plus many more in Canada, the UK, and Europe.
6. Chime
Founded in 2012 by Chris Britt and Ryan King, Chime partners with regional banks to offer fee-free mobile banking services. Chime uses encryption, access protocols, continuous monitoring, and proactive fraud prevention to keep its payment processes secure.
In April 2020, Chime launched the fee-free overdraft product “SpotMe.” It successfully processed $375 million in Economic Stimulus Payments one week from the scheduled government disbursement.
7. Adyen
Adyen, listed on Euronext Amsterdam, is a Dutch FinTech company founded in 2006 by Arnout Schuijff and Pieter van der Does. Primarily catering to businesses, Adyen offers e-commerce, mobile, and POS payment solutions. The company successfully achieved 1.3 billion euros in revenue in 2022.
Adyen’s cybersecurity measures include encryption, tokenization, secure data storage, and regular security assessments, all backed by Level 1 PCI DSS certification.
8. Sift
Founded in 2011, Sift is one of the cybersecurity companiesproviding AI-powered fraud platform. It uses machine learning combined with data network scoring 1 trillion events per year to offer security solutions.
The company notices that online fraud is a growing problem, especially for retailers and financial institutions. Therefore, Sift’s algorithm distilled over hundreds of millions of user actions to create fraud pattern recognition tool.
Sift has received several accolades, including being named a leader in 2023 Forrester Wave for Digital Fraud Management and G2’s Momentum Leader in Spring 2024.
9. Darktrace
Cybersecurity company Darktrace, established in 2013, uses AI to respond to cyber threats in real time. Since its inception, the tools it created has been deployed over 9,000 times.
With its Enterprise Immune System technology, Darktrace is able to handle Industrial Operational Technology, email, SaaS, cloud, network, and endpoint safety. More than 9,400 organisations, including major financial institutions, rely on its advanced solutions.
The company was included in The Cyber Award’s AI Product of the Year in 2020 and Fast Company’s top 10 most innovative AI companies for 2022.
10. Netskope
Cloud-based cybersecurity company Netskope was founded in 2012 to help organisations apply zero trust principles. The company’s solutions protect data across cloud services and apps, which makes it pivotal for fintech institutions relying on such technologies.
The California-based firm helps financial services companies meet compliance requirements such as FINRA, PCI-DSS, GLBA, and GDPR. Not only that, it provides necessary protection, such as SWG, CASB, ZTNA, DLP, Cloud Firewall and SD-WAN.
In 2024, Netskope is recognized as a leader in the Gartner Magic Quadrant for Cloud Access Security Brokers (CASBs).
What makes these a success
These top cybersecurity firms in fintech have set high standards in cybersecurity. Their efforts have significantly contributed to a safer digital landscape for fintech.
They have also demonstrated collaboration with fellow financial or cybersecurity experts. Collaboration means having access to specialised knowledge that may not be available in-house. This includes latest threat intelligence, security tools, and tailored audits.
Additionally, it is imperative that companies adhere to industry standards and regulations. Compliance is the first step in building trust with users and stakeholders alike.
Digital transformation has introduced new challenges in financial cybersecurity.
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The banking industry has shifted towards online transactions, leaving behind the days of brick-and-mortar branch visits for check cashing or deposits. As more and more sensitive data is transferred through internet banking technology, ensuring its security becomes paramount.
According to a 2023 survey by the Financial Services Information Sharing and Analysis Centre, 89% of financial institutions are increasing their cybersecurity budgets in 2024. This investment underscores the need for advanced internet banking security measures despite the existence of various security protocols.
In this article, we’ll explore the latest trends in internet banking security, examine real-world cases of cyberattacks, and provide valuable insights into securing your financial institution’s technological infrastructure.
Introduction to Internet Banking Security
As online banking becomes increasingly prevalent, financial institutions must prioritise cybersecurity – implementing specific measures to safeguard their systems and networks from cyberattacks.
Cybersecurity challenges in internet banking are multifaceted. Hackers employ a variety of techniques, including hacking attempts, data breaches, identity theft, malware, and viruses, to gain unauthorised access to sensitive customer data and financial assets.
A successful cyberattack can not only compromise sensitive information but also disrupt critical bank operations, causing significant inconvenience for customers and potentially leading to financial losses.
Common Cybersecurity threats
A 2021 report by IBM highlights the high cost of data breaches in the financial sector, placing it second only to healthcare. This vulnerability stems from the immense value of economic data, which can be exploited for fraud and other cyberattacks.
Beyond data breaches, financial institutions must also be vigilant against ransomware infections, phishing scams, and account takeover attempts. These threats carry the potential for data loss, operational disruption, and significant financial consequences.
In phishing attacks, cybercriminals impersonate bank representatives via emails, calls, or SMS messages. Their objective is to deceive customers into divulging sensitive information such as login credentials or credit card details.
Meanwhile, malware attacks take various forms, including worms, viruses, spyware, ransomware, and Trojans. These malicious programs can infiltrate devices, servers, or networks. If a customer’s infected device connects to the bank’s network, it poses a significant threat to overall financial cybersecurity.
Impact on consumers and banks
Cybersecurity breaches create huge consequences for both consumers and financial institutions. Consumers directly impacted by a breach may find their personal information exposed on the black market, thereby increasing their risk of identity theft.
The impact on banks, however, extends far beyond immediate financial losses from stolen funds. Beyond the initial financial blow, banks face the additional challenge of a potential erosion of customer trust. When customers fear their money is at risk, their confidence in the bank’s ability to protect them diminishes.
Mitigation Strategies
The first line of defense in ensuring robust financial cybersecurity lies within a well-trained workforce. Equipping employees with cybersecurity best practices empowers them to identify potential threats like phishing attempts or suspicious software. Regular training ensures awareness remains high and employees are prepared to act appropriately.
Organisations should also implement comprehensive cybersecurity policies and procedures. These policies should clearly outline acceptable online behaviour, data handling practices, and incident response protocols. Regularly reviewing and updating these policies ensures they remain relevant against evolving cyber threats.
Case Studies
One such case involved a social engineering attack on Experian’s South African office. A cybercriminal impersonated a representative from one of Experian’s clients and tricked an employee into releasing sensitive internal data.
Although Experian downplayed the information’s sensitivity, the South African Banking Risk Information Center reported that the breach affected a staggering 24 million customers and nearly 800,000 businesses. The compromised data eventually surfaced on a dark web forum in 2021. Fortunately, with law enforcement assistance, the data was promptly removed before widespread exploitation occurred.
The second case involves a data breach at Flagstar Bank, a major US financial institution. In 2022, the bank suffered a significant breach exposing the social security numbers of nearly 1.5 million customers. While Flagstar initiated incident response protocols and stated no evidence of data exploitation, they still advised customers to closely monitor their credit and promptly report any suspicious activity.
Future Cybersecurity Trends
The cybersecurity landscape for banks is constantly shifting, demanding ongoing vigilance and adaptation. Advanced persistent threats (APTs) remain a major concern, as these actors employ sophisticated techniques to infiltrate networks and steal sensitive data.
Furthermore, the growing number of Internet of Things (IoT) devices introduces new vulnerabilities, potentially leading to large-scale breaches and botnet attacks. Emerging technologies like AI and quantum computing pose further challenges.
While these technologies hold promise for enhancing security, they could also be exploited by malicious actors to launch more potent cyberattacks. Therefore, staying ahead of the evolving threat landscape will be a key focus for the future of cybersecurity in banking.
Because digital banking involves sensitive personal and financial information, it has unique cybersecurity needs to protect against hackers and fraud.
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Cybersecurity is a vital component of digital banking. Customers need to trust systems to manage their money online through apps or websites, without visiting a physical bank. This offers convenience, allowing users to check balances, transfer money, pay bills, and even apply for loans from their computers or smartphones.
Because digital banking involves sensitive personal and financial information, it has unique cybersecurity needs to protect against hackers and fraud. One key security measure is encryption, which scrambles data so that only authorised users can read it.
Another important measure is two-factor authentication, which requires users to provide two forms of identification, such as a password and a code sent to their phone, to access their accounts. These measures help ensure that digital banking remains safe and secure for users.
Cybersecurity Risks and Preventative Measures
One of the biggest concerns in the banking industry today is the security of mobile banking apps. As more people use these apps for financial transactions, weak security measures can make them vulnerable to hacks.
Additionally, banks face threats from third-party organisations, as hackers often target less secure shared banking systems. Third-party networks cab also be hijacked to gain unauthorised access. The growing field of cryptocurrency also presents new cyber threats… The unstable nature of cryptocurrency and limited understanding of securing these digital assets make them attractive targets for cybercriminals.
To protect against cyber attacks, banks are implementing various preventative measures. Conducting thorough security audits helps find system weaknesses. Setting up strong firewalls while updating antivirus and anti-malware software creates a solid defence against cyber threats. Multi-factor authentication (MFA) and biometrics add extra security layers, making it harder for unauthorised users to access accounts.
Automatic logout features end user sessions after inactivity. Meanwhile, banks are educating customers about secure practices like avoiding public Wi-Fi for banking and regularly updating passwords. These combined efforts enhance the overall cybersecurity of the banking sector.
The Importance of Regulatory Compliance
Regulatory compliance is crucial in digital banking cybersecurity for several reasons. First, it ensures the protection of customer data. Regulatory standards include guidelines that help banks protect sensitive information. This reduces the risk of data breaches and identity theft. Compliance also builds and maintains customer trust. When customers know that a bank follows security standards, they feel more confident about the safety of their financial information.
Following regulations helps banks avoid legal problems, including fines and sanctions, which can be costly and harm their reputation. Regulations provide a framework for consistent security practices across the industry. This ensures all banks meet a basic level of security to prevent gaps that hackers might exploit. Additionally, compliance requires banks to conduct regular risk assessments and audits, helping to identify weaknesses and strengthen their cybersecurity measures.
Regulatory compliance also ensures that banks are prepared to maintain operations and protect customer data, even during cyber attacks or other disruptions. This includes having disaster recovery and business continuity plans in place.
Lastly, compliance can drive innovation by encouraging banks to adopt new technologies and practices that enhance security. This proactive approach helps banks stay ahead of emerging threats and continuously improve their cybersecurity measures.
Case Study: Revolut
Revolut is known for its strong cybersecurity measures. The bank uses advanced encryption to ensure that data shared between users and the bank is secure, protecting personal details, transaction histories, and account balances from being intercepted by hackers.
Additionally, Revolut requires users to enable two-factor authentication (2FA), adding an extra layer of security by requiring a second form of verification, such as a code sent to their phone. The bank also employs biometric verification, such as fingerprint or facial recognition, to further secure user accounts.
Revolut also uses machine learning to detect and prevent fraudulent activities in real-time, ensuring that suspicious transactions are quickly identified and blocked.
Case Study: Chime
Chime is another digital bank that prioritises cybersecurity. Chime protects user data through encryption, ensuring that communication channels are secure. The bank also offers two-factor authentication to enhance account security, requiring users to verify their identity with a second form of verification.
Chime provides real-time transaction alerts, notifying users of any account activity immediately. This allows users to quickly identify and respond to any suspicious transactions. Additionally, Chime employs measures such as automatic logout after periods of inactivity to prevent unauthorised access. These security features help Chime maintain a secure banking environment for its users.
Looking ahead, cybersecurity trends in digital banking are likely to focus on several key areas to stay ahead of emerging threats. One trend could involve increased adoption of artificial intelligence (AI) and machine learning to enhance threat detection and response capabilities. AI can analyse vast amounts of data in real-time to identify unusual patterns or behaviors that may indicate potential security breaches.
Staying ahead of cybersecurity threats requires a combination of technological innovation, proactive defense strategies, and ongoing education. Digital banks that prioritise cybersecurity and adapt to these future trends will be better equipped to protect their customers’ data and maintain trust in an increasingly digital banking landscape.
Increasing digitalisation is making financial services cybersecurity a crucial issue for banking technology.
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Here are the most trends that affect it the most:
A growing reliance on bankingtechnology as the industry digitalises has naturally brought both cybersecurity and financial services security into the limelight.
Digitalization will always come with cyber risks, and financial services will always come with security concerns. Banking is among the industries most vulnerable to cyber threats. A lack of financial services security is a gap cybercriminals can exploit, especially as banking goes through a digital transformation.
Introduction to Cybersecurity Trends
Financial companies face much more challenging cyber threats in 2024. Cyber risks boomed as the world shifted online during the Covid-19 pandemic. This trend is getting amplified by the implementation of AI in financial services, as well as the proliferation of AI-enabled cyber-criminality broadly.
This period of innovation is creating a greater array of possible vulnerabilities for criminal groups to exploit – a much bigger attack surface.
This extends to much bolder targets – the International Monetary Fund (IMF) said in March it was hit by a cyber attack. This is happening worldwide and continues the trend established last year, with Indonesia’s State Cyber Agency (BSSN) recording 350 million cyberattacks occurred in 2023. That includes a ransomware attack on its National Data Centre (PDN).
In previous years, the banking technology security system was linear. In an era with hundreds of interconnected devices, banks have a much more complex challenge to keep their networks secure. Cyber risks are intense and varied, including data breaches, Botnets, and DDoS attacks.
These attacks will hit consumer financial services, through temporary outages, the theft of personal data, and impacting company performance assessments.
Trend 1: AI in Cybersecurity
Artificial intelligence (AI) technology has already created huge changes in business behaviour. It has also encouraged a shift from reactive to proactive approaches in detecting cyber-attack patterns.
As businesses are forced to respond to the widespread arrival of this revolutionary technology.
A simple example of threat increases due to AI is the use of generative AI to increase phishing attacks. It is easier to generate a lot more spam than it was before.
A better piece of news is that AI also brings more precision to recognizing cyber-attack patterns. Machine-learning can study cyber threats in depth and both identify them and identify vulnerabilities in financial services security, This ultimately helps fast and effective responses to evolving cyber threats.
Trend 2: Zero Trust Architecture
The “Zero Trust” security model will continue to evolve. This is where every user and devices is considered untrustworthy by default, until proven otherwise.
That means that testing and validation processes will apply for every user or device login. This approach helps mitigate the risk of internal and external threats.
Basically, every user and device has to continually verify that they are legitimate.
Trend 3: Cloud Security:
An increase in cloud adoption through 2024 will also mean a corresponding growth in cloud security solutions.
More integrated cloud security solutions are a natural part of protecting the cloud environment. They are also an important facet of banking technology security strategy, and will continue to be.
Trend 4: Blockchain-based Security
Adopting blockchain technology as a security solution will help ensure data integrity and transparency.
Blockchain effectively shuts off the tap for interference in the creation of the data records that underpin a given process. The lock security system will ensure optimal protection from unauthorised changes.
Trend 5: Increasing Mobile Security
Mobile devices are now an important player in digital financial transactions. That’s whyfinancial services security is also focused on enhancing stronger mobile security.
Banking technology platforms are designed with strong encryption protocols. These will ensure data sent between devices is protected from unauthorised access. That includes bringing multi-factor authentication features, biometrics, and passcodes.
Trend 6: Biometric Authentication
As above, verifying the individual at the point of digital contact is a storing guaerantee of authenticity.
Authentication methods liike facial recognition and fingerprint scanning offer stronger security. This includes multi-modal biometric authentication that is also used to prevent forgery. There are banking apps that require occasional video recordings to authenticate by appearance and voice recognition to approve large transactions.
Trend 7: Changes in Privacy and Data Protection Regulations
Privacy rule changes will continue to evolve following as data protection requirements get stricter.
Banking companies will also follow global regulations that focus on consumer data privacy. Their clients will also have higher expectations of data security.
Trend 8: IoT Cybersecurity
The IoT (Internet of Things) ecosystem requires better security standards and device management in general.
Because IoT functions through the connection of physical infrastructure with the digital realm, penetrations of that infrastructure – especially through physical devices, require tough security measures.
Reducing the risks associated with unsecured IoT devices will be such a widespread trend that financial services security can rely on a huge body of evidence and best practice to control what attack surface is presented,
Trend 9: 5G Network Cybersecurity
The launch of 5G networks worldwide bring with them the network security expectations that any major shift in networking will create.
That requires an emphasis on network security. Faster network speeds with lower latency creates new challenges that need to be solved. For financial services security, protecting IoT devices connected to the 5G network, ensuring infrastructure support, and mitigating the risk of vulnerabilities appearing where network breaks happen during authentication procedures are all areas of concern.
Trend 10: Cyber Insurance
The cyber insurance market will see significant growth in the future.
Because cybersecurity threats evolve so quickly, assessing how to insure for will require totally new approaches across Insurtech, client-side decisions, and consumer protection.
This falls neatly into concert with the need for financial protection from cyber threats. Insurance will adjust to banking technology risks and the changing compliance environment that maintaining financial service security will now require.
Conclusion
Cybersecurity trends encourage banks to improve their security architecture. Old methods used to secure banking technology systems will most likely be ineffective as the demands on banking technology to evolve are inescapable.
Financial companies will need better financial services security capabilities – but they will be able to get them. The industry will respond with more sophisticated security solutions to the increasing threat from cyberspace.
Our cover story this month focuses on the work of Arianne Gallagher-Welcher. As the Executive Director for the USDA Digital…
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Our cover story this month focuses on the work of Arianne Gallagher-Welcher. As the Executive Director for the USDA Digital Service, in the Office of the OCIO, her team’s mission is to drive a tech transformation at the USDA. The goal is to better serve the American people across all of its 50 states.
Welcome to the latest issue of Interface magazine!
Welcome to a new year of possibility where technology meets business at the interface of change…
“We knew that in order for us to deliver what we needed for our stakeholders, we needed to be flexible – and that has trickled down from our senior leaders.” Arianne Gallagher-Welcher, Executive Director for the USDA Digital Service reveals the strategic plan’s first goal. Above all, the aim is to deliver customer-centric IT so farmers, producers, and families can find dealing with USDA as easy as using an ATM.
BCX: Delivering insights & intelligence across the Data & AI value chain
We also sat down with Stefan Steffen,Executive Leader for Data Insights & Intelligence at BCX. He revealed how BCX is leveraging AI to strategically transform businesses and drive their growth. “Our commitment to leveraging data and AI to drive innovation harnesses the power of technology to unlock new opportunities, drive efficiency, and enhance competitiveness for our clients.”
Momentum Multiply: A culture-driven digital transformation for wellness
Multiply Inspire & Engage is a new offering from leading South African insurance provider Momentum Health Solutions. Furthermore, it is the first digital wellness rewards program in South Africa to balance mental health and physical health in pursuing holistic wellness. CIO, Ndibulele Mqoboli, discusses re-platforming, cloud migrations, and building a culture of ownership, responsibility, and continuous improvement.
Clark County: Creating collaboration for the benefit of residents
Navigating the world of local government can be a minefield of red tape, both for citizens and those working within it. Al Pitts, Deputy CIO of Clark County, talks to us about the organisation’s IT transformation. He explains why collaboration is key to support residents. “We have found our new Clark County – ‘Together for Better’ – is a great way to collaborate on new solutions.”
Also in this issue, we hear from Alibaba’s European GM Jijay Shen on why digitalisation can be a driving force for SMEs. We learn how businesses can get cybersecurity right with KnowBe4 and analyse the rise of ‘The Mobility Society’.
For our first cover story of 2024 we meet with Lloyds Banking Group’s CIO for Consumer Relationships & Mass Affluent,…
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For our first cover story of 2024 we meet with Lloyds Banking Group’s CIO for Consumer Relationships & Mass Affluent, Martyn Atkinson, to learn how an ambitious growth agenda, combined with a people-centred culture, is driving change for customers and colleagues across the Group.
Welcome to the latest issue of Interface magazine!
Welcome to a new year of possibility where technology meets business at the interface of change…
Lloyds Banking Group: A technology & business strategy
“We’ve made significant strides in transforming our business for the future,” explains Martyn Atkinson, CIO for Consumer Relationships & Mass Affluent at Lloyds Banking Group. “I’m really proud of what the team have achieved. There’s loads more to go after. It’s a really exciting time as we become a modern, progressive, tech-enabled business. We’ve aimed to maintain pace and an agile mindset. We want to get products and services out to our customers and colleagues. We’ll test and learn to see if what we’re doing is actually making a meaningful difference.”
AFRICOM: Organisational resilience through cybersecurity
We also speak with U.S. Africa Command’s (AFRICOM) CISO Ryan Larsen on developing the right culture to build cyber awareness. He is committed to driving secure and continued success for the Department of Defence. “I often think of every day working in cyberspace a lot like counterinsurgency warfare and my time in Afghanistan. You had to be on top of your game every minute of every day. The adversary only needs to get lucky one time to find you with that IED.”
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ALIC: Creating synergy to scale at speed with Lolli
Since 2009 the Australian Lending & Investment Centre (ALIC) has been matching Australians with loans that help build their wealth. It has delivered over $8.3bn in loans to more than 22,000 leading Australian investors and businesses. Managing Director Damian Brander talks ethical lending and the challenges of a shifting financial landscape. ALIC has also built Lolli – a broker enhancement platform built by brokers, for brokers.
Sime Darby Motors: Driving digital, cultural, and business transformation together
Sime Darby Berhad is one of the oldest and most successful multinational companies in Malaysia. It has a twin focus on the Industrial and Motors sectors. The company employs more than 24,000 people, operating across 17 countries and territories. Sime Darby Motors’ Chief Digital & Information Officer Tuan Jean Tee shares how he makes sure digital, cultural, and process transformation go hand in hand throughout one of APAC’s largest automotive multinationals.
Also in this issue, we hear from Microsoft on the art of sustainable supply chain transformation, Tecnotree map the key trends set to impact the telecoms industry in 2024 and our panel of experts chart the big Fintech predictions for the year ahead.
Cybersecurity leader Shinesa Cambric on Microsoft’s innovation journey to identify, detect, protect, and respond to emerging threats against identity and access
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This month’s cover story highlights a cybersecurity program protecting billions of users.
Welcome to the latest issueof Interface magazine!
Interface showcases leaders at the forefront of innovation with digital technologies transforming myriad industries.
Shinesa Cambric is on a mission to drive innovation for cybersecurity at Microsoft. Moreover, by embracing diversity and opening all channels towards collaboration her team tackles anti-abuse and delivers fraud-defence. Continuous Improvement doesn’t just play into her role, it defines it…
“In the fraud and abuse space, attackers are constantly trying to identify ways to look like a legitimate user,” warns Shinesa. “And this means my team, and our partners, have to continuously adapt. We identify new patterns and behaviours to detect fraudsters. At the same time, we must do it in such a way we don’t impact our truly ‘good’ and legitimate users. Microsoft is a global consumer business and any time you add friction or an unpleasant experience for a consumer, you risk losing them, their business and potentially their trust. My team’s work sits on the very edge of the account sign up and sign in process. We are essentially the first touch within the customer funnel for Microsoft – a multi-billion dollar company.”
ABB: Digital Technolgies contributing towards Net Zero
Nigel Greatorex, Global Industry Manager for Carbon Capture and Storage (CCS) at ABB Energy Industries, explains how digital technologies can play a critical role in the transition to a low carbon world. He highlights the role of CCS in enabling global emissions reductions and how challenges can be overcome through digitalisation…
“It is widely recognised decarbonisation is essential to achieving net zero emissions by 2050. Therefore, it’s not surprising that emerging decarbonisation technology is becoming an increasingly important, and rapidly growing market.”
CSI: How can your IT estate improve its sustainability?
Andy Dunn, Chief Revenue Officer at IT solutions specialist CSI, reveals how digital technologies can contribute to ESG obligations: “Sustainability is a now seen as a strategic business imperative, so much so that 74% of companies consider Environmental, Social and Governance (ESG) factors to be very important to the value of their company. Additionally, we know almost three in four organisations have set a net zero goal. With an average target date of 2044, 50% of organisations are seeking more energy efficient products and services.”
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“Optimising energy use and consolidating servers and storage infrastructure form a strong basis for shaping a more environmentally friendly and efficient IT estate. It no longer needs to be the Achilles Heel of an ESG policy. “
Mia Platform: Sustainable Cloud Computing
Davide Bianchi, Senior Technical Lead at Mia Platform, explores the silver lining of sustainable cloud computing. He reveals how it can help us reduce our digital carbon thumbprint with collaboration, efficient use of applications, containerisation of apps, microservices and green partnerships.
“We’re already on an important technological path toward ubiquitous cloud computing. Correspondingly, this brings incredible long-term benefits too. These include greater scalability, improved data storage, and quicker application deployment, to name a few.”
Also in this issue, we hear from Doug Laney, Innovation Fellow at West Monroe and author of Infonomics and Data Juice. Also, we learn how companies can measure, manage and monetise to realise the potential of their data. And, Deputy CIO Melvin Brown discusses the people-centric approach to IT supporting America’s civil service at The Office of Personnel Management (OPM).
Doug Laney is Innovation Fellow at West Monroe and a leading Data & Analytics strategist. We caught up with the author of Infonomics and Data Juice to talk tech and how companies can measure, manage and monetise to realise the potential of their data
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Our cover story explores the rise of data and information as an asset.
Welcome to the latest issueof Interface magazine!
Interface showcases leadersaiming to take advantage of data, particularly in a new world of AI technologies where it is the fuel…
How to monetise, manage and measure data as an asset
Our cover star is pretty big in the world of analytics… We meet the guy who defined Big Data. Doug Laney is Innovation Fellow at West Monroe and a leading Data & Analytics strategist. We caught up with the author of Infonomics and Data Juice to talk tech and learn how companies can measure, manage and monetise to realise the potential of their information. In his first book Laney advised companies to stop being fixated on hindsight-oriented analytics. “It doesn’t actually move the needle on the business. In the stories I’ve compiled over the last decade, 98% have more to do with organisations using data to diagnose, predict, prescribe or automate something. It’s not about asking questions about what happened in the past.”
Canvas Worldwide: A data-driven media business
Continuing this month’s data theme, we also spoke with Alisa Ben, SVP, Head of Analytics at full-service media agency Canvas Worldwide. Data has transformed the organisation, and what its clients do. “We look holistically at the client’s business and sometimes the tools we have might be right for them, sometimes not. It’s more about helping our clients achieve their business outcomes.”
TUI Musement: from digital transformation to digital pioneer
At travel giant TUI, handling data effectively is paramount when communicating consistently and meaningfully with up to 25 million customers annually. David Garcia, CIO for TUI Musement, talks about the tech evolution driving the travel giant’s provision of experiences, transfers and tours. It’s a big part of its operational shift from local to global. “As a CIO, I’ve always been interested in how the tech innovations we drive can support the business and add value.”
Hiscox: making cybersecurity more accessible
Liz Banbury, CISO at Hiscox and president of (ISC)² London Chapter, talks to us about how cybersecurity can become a more accessible, realistic career path for almost anybody. “When I was at school, topics like computer science didn’t even exist,” Banbury explains. “In one of my first jobs, over in Hong Kong, we were still using a typewriter! A lot has changed. My key point here is that there’s a lot of cybersecurity professionals who are really good at their job. They are inspiring, and have come from all walks of life. Crucially, they don’t have a maths, computer science, or technological background at all. But they still make great cybersecurity professionals.
Portland Community College: Risk vs Speed in Cybersecurity
Reet Kaur, former Chief Information Security Officer at Portland Community College, discusses the organisation’s transition to the cloud amid a digital transformation journey. “I don’t want to work with people who just say yes all the time. I want my ideas challenged to help forge the excellence in the security programmes I help build.”
DBHDS: Cybersecurity in healthcare
The Virginia Department of Behavioral Health and Developmental Services (DBHDS) exists to create ‘a life of possibilities for all Virginians’ and transform behavioural health. Its focus is on supporting people across the entire commonwealth. It helps them get the support they need in order to take wellness and recovery into their own hands. In an area like healthcare, sensitive information is all over the place, meaning cybersecurity is a priority – and this is where Glendon Schmitz, CISO at DBHDS, comes in. “The security team exists to help the wider organisation achieve its objectives with data. We’re there to protect the business, not the other way around.”
Also in this issue, we schedule the can’t miss tech events and get the lowdown on IoT security from the Mobile Ecosystem Forum.
Expert analysis of the tech trends set to make waves this year
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Digital transformation is a continuing journey of change with no set final destination. This makes predicting tomorrow a challenge when no one has a crystal ball to hand.
After a difficult few years for most businesses following a disruptive pandemic and now battling a cost-of-living crisis, many enterprises are increasingly leveraging new types of technology to gain an edge in a disruptive world.
With this in mind, here are what experts predict for the next 12 months…
1. Process Mining
Sam Attias, Director of Product Marketing at Celonis, expects to see a rise in the adoption of process mining as it evolves to incorporate automation capabilities. He says process mining has traditionally been “a data science done in isolation” which helps companies identify hidden inefficiencies by extracting data and visually representing it.
“It is now evolving to become more prescriptive than descriptive and will empower businesses to simulate new methods and processes in order to estimate success and error rates, as well as recommend actions before issues actually occur,” says Attias. “It will fix inefficiencies in real-time through automation and execution management.”
2. The evolution of social robots
Gabriel Aguiar Noury, Robotics Product Manager at Canonical, anticipates social robots to return this year. After companies such as Sony introduced robots like Poiq, Aguiar Noury believes it “sets the stage” for a new wave of social robots.
“Powered by natural language generation models like GPT-3, robots can create new dialogue systems,” he says. “This will improve the robot’s interactivity with humans, allowing robots to answer any question.
“Social robots will also build narratives and rich personalities, making interaction with users more meaningful. GPT-3 also powers Dall-E, an image generator. Combined, these types of technologies will enable robots not only to tell but show dynamic stories.”
3. The rebirth of new data-powered business applications
Christian Kleinerman, Senior Vice President of Product at Snowflake, says there is the beginning of a “renaissance” in software development. He believes developers will bring their applications to central combined sources of data instead of the “traditional approach” of copying data into applications.
“Every single application category, whether it’s horizontal or specific to an industry vertical, will be reinvented by the emergence of new data-powered applications,” affirms Kleinerman. “This rise of data-powered applications will represent massive opportunities for all different types of developers, whether they’re working on a brand-new idea for an application and a business based on that app, or they’re looking for how to expand their existing software operations.”
4. Application development will become a two-way conversation
Adrien Treuille, Head of Streamlit at Snowflake, believes application development will become a two-way conversation between producers and consumers. It is his belief that the advent of easy-to-use low-code or no-code platforms are already “simplifying the building” and sharing of interactive applications for tech-savvy and business users.
“Based on that foundation, the next emerging shift will be a blurring of the lines between two previously distinct roles — the application producer and the consumer of that software.”
He adds that application development will become a collaborative workflow where consumers can weigh in on the work producers are doing in real-time. “Taking this one step further, we’re heading towards a future where app development platforms have mechanisms to gather app requirements from consumers before the producer has even started creating that software.”
5. The Metaverse
Paul Hardy, EMEA Innovation Officer at ServiceNow, says he expects business leaders to adopt technologies such as the metaverse in 2023. The aim of this is to help cultivate and maintain employee engagement as businesses continue working in hybrid environments, in an increasingly challenging macro environment.
“Given the current economic climate, adoption of the metaverse may be slow, but in the future, a network of 3D virtual worlds will be used to foster meaningful social connections, creating new experiences for employees and reinforcing positive culture within organisations,” he says. “Hybrid work has made employee engagement more challenging, as it can be difficult to communicate when employees are not together in the same room.
“Leaders have begun to see the benefit of hosting traditional training and development sessions using VR and AI-enhanced coaching. In the next few years, we will see more workplaces go a step beyond this, for example, offering employees the chance to earn recognition in the form of tokens they can spend in the real or virtual world, gamifying the experience.”
6. The year of ESG?
Cathy Mauzaize, Vice President, EMEA South, at ServiceNow, believes 2023 could be the year that environmental, social and corporate governance (ESG) is vital to every company’s strategy.
“Failure to engage appropriate investment in ESG strategies could plunge any organisation into a crisis,” she says. “Legislation must be respected and so must the expectations of employees, investors and your ecosystem of partners and customers.
“ESG is not just a tick box, one and done, it’s a new way of business that will see us through 2023 and beyond.”
7. Macro Trends and Redeploying Budgets for Efficiency
Ulrik Nehammer, President, EMEA at ServiceNow, says organisations are facing an incredibly complex and volatile macro environment. Nehammer explains as the world is gripped by soaring inflation, intelligent digital investments can be a huge deflationary force.
“Business leaders are already shifting investment focus to technologies that will deliver outcomes faster,” he says. “Going into 2023, technology will become increasingly central to business success – in fact, 95% of CEOs are already pursuing a digital-first strategy according to IDC’s CEO survey, as digital companies deliver revenue growth far faster than non-digital ones.”
8. Organisations will have adopted a NaaS strategy
David Hughes, Aruba’s Chief Product and Technology Officer, believes that by the end of 2023, 20% of organisations will have adopted a network-as-a-service (NaaS) strategy.
“With tightening economic conditions, IT requires flexibility in how network infrastructure is acquired, deployed, and operated to enable network teams to deliver business outcomes rather than just managing devices,” he says. “Migration to a NaaS framework enables IT to accelerate network modernisation yet stay within budget, IT resource, and schedule constraints.
“In addition, adopting a NaaS strategy will help organisations meet sustainability objectives since leading NaaS suppliers have adopted carbon-neutral and recycling manufacturing strategies.”
9. Think like a seasonal business
According to Patrick Bossman, Product Manager at MariaDB corporation, he anticipates 2023 to be the year that the ability to “scale out on command” is going to be at the fore of companies’ thoughts.
“Organisations will need the infrastructure in place to grow on command and scale back once demand lowers,” he says. “The winners in 2023 will be those who understand that all business is seasonal, and all companies need to be ready for fluctuating demand.”
10. Digital platforms need to adapt to avoid falling victim to subscription fatigue
Demed L’Her, Chief Technology Officer at DigitalRoute, suggests what the subscription market is going to look like in 2023 and how businesses can avoid falling victim to ‘subscription fatigue’. L’Her says there has been a significant drop in demand since the pandemic.
“Insider’s latest research shows that as of August, nearly a third (30%) of people reported cancelling an online subscription service in the past six months,” he reveals. “This is largely due to the rising cost of living experienced globally that is leaving households with reduced budgets for luxuries like digital subscriptions. Despite this, the subscription market is far from dead, with most people retaining some despite tightened budgets.
“However, considering the ongoing economic challenges, businesses need to consider adapting if they are to be retained by customers in the long term. The key to this is ensuring that the product adds value to the life of the customer.”
11. Waking up to browser security
Jonathan Lee, Senior Product Manager at Menlo Security, points to the web browser being the biggest attack surface and suggests the industry is “waking up” to the fact of where people spend the most time.
“Vendors are now looking at ways to add security controls directly inside the browser,” explains Lee. “Traditionally, this was done either as a separate endpoint agent or at the network edge, using a firewall or secure web gateway. The big players, Google and Microsoft, are also in on the act, providing built-in controls inside Chrome and Edge to secure at a browser level rather than the network edge.
“But browser attacks are increasing, with attackers exploiting new and old vulnerabilities, and developing new attack methods like HTML Smuggling. Remote browser isolation is becoming one of the key principles of Zero Trust security where no device or user – not even the browser – can be trusted.”
12. The year of quantum-readiness
Tim Callan, Chief Experience Officer at Sectigo, predicts that 2023 will be the year of quantum-readiness. He believes that as a result of the standardisation of new quantum-safe algorithms expected to be in place by 2024, this year will be a year of action for government bodies, technology vendors, and enterprise IT leaders to prepare for the deployment.
“In 2022, the US National Institute of Standards and Technologies (NIST) selected a set of post-quantum algorithms for the industry to standardise on as we move toward our quantum-safe future,” says Callan.
“In 2023, standards bodies like the IETF and many others must work to incorporate these algorithms into their own guidelines to enable secure functional interoperability across broad sets of software, hardware, and digital services. Providers of these hardware, software, and service products must follow the relevant guidelines as they are developed and begin preparing their technology, manufacturing, delivery, and service models to accommodate updated standards and the new algorithms.”
13. AI: fewer keywords, greater understanding
AI expert Dr Pieter Buteneers, Director of AI and Machine Learning at Sinch, expects artificial intelligence to continue to transition away from keywords and move towards an increased level of understanding.
“Language-agnostic AI, already existent within certain AI and chatbot platforms, will understand hundreds of languages — and even interchange them within a single search or conversation — because it’s not learning language like you or I would,” he says. “This advanced AI instead focuses on meaning, and attaches code to words accordingly, so language is more of a finishing touch than the crux of a conversation or search query.
“Language-agnostic AI will power stronger search results — both from external (the internet) and internal (a company database) sources — and less robotic chatbot conversations, enabling companies to lean on automation to reduce resources and strain on staff and truly trust their AI.”
14. Rise in digital twin technology in the enterprise
John Hill, CEO and Founder of Silico, recognises the growing influence digital twin technology is having in the market. Hill predicts that in the next 20 years, there will be a digital twin of every complex enterprise in the world and anticipates the next generation of decision-makers will routinely use forward-looking simulations and scenario analytics to plan and optimise their business outcomes.
“Digital twin technology is one of the fastest-growing facets of industry 4.0 and while we’re still at the dawn of digital twin technology,” he explains. “Digital twins will have huge implications for unlocking our ability to plan and manage the complex organisations so crucial for our continued economic progress and underpin the next generation of Intelligent Enterprise Automation.”
15. Broader tech security
With an exponential amount of data at companies’ fingertips, Tricentis CEO, Kevin Thompson says the need for investment in secure solutions is paramount.
“The general public has become more aware of the access companies have to their personal data, leading to the impending end of third-party cookies, and other similar restrictions on data sharing,” he explains. “However, security issues still persist. The persisting influx of new data across channels and servers introduces greater risk of infiltration by bad actors, especially for enterprise software organisations that have applications in need of consistent testing and updates. The potential for damage increases as iterations are being made with the expanding attack surface.
“Now, the reality is a matter of when, not if, your organisation will be the target of an attack. To combat this rising security concern, organisations will need to integrate security within the development process from the very beginning. Integrating security and compliance testing at the upfront will greatly reduce risk and prevent disruptions.”
16. Increased cyber resilience
Michael Adams, CISO at Zoom, expects an increased focus on cyber resilience over the next 12 months. “While protecting organisations against cyber threats will always be a core focus area for security programs, we can expect an increased focus on cyber resilience, which expands beyond protection to include recovery and continuity in the event of a cyber incident,” explains Adams.
“It’s not only investing resources in protecting against cyber threats; it’s investing in the people, processes, and technology to mitigate impact and continue operations in the event of a cyber incident.”
17. Ransomware threats
As data leaks become increasingly common place in the industry, companies face a very real threat of ransomware. Michal Salat, Threat Intelligence Director at Avast, believes the time is now for businesses to protect themselves or face recovery fees costing millions of dollars.
“Ransomware attacks themselves are already an individual’s and businesses’ nightmare. This year, we saw cybergangs threatening to publicly publish their targets’ data if a ransom isn’t paid, and we expect this trend to only grow in 2023,” says Salat. “This puts people’s personal memories at risk and poses a double risk for businesses. Both the loss of sensitive files, plus a data breach, can have severe consequences for their business and reputation.”
18. Intensified supply chain attacks
Dirk Schrader, VP of security research at Netwrix, believes supply chain attacks are set to increase in the coming year. “Modern organisations rely on complex supply chains, including small and medium businesses (SMBs) and managed service providers (MSPs),” he says.
“Adversaries will increasingly target these suppliers rather than the larger enterprises knowing that they provide a path into multiple partners and customers. To address this threat, organisations of all sizes, while conducting a risk assessment, need to take into account the vulnerabilities of all third-party software or firmware.”
19. A greater need to manage volatility
Paul Milloy, Business Consultant at Intradiem, stresses the importance of managing volatility in an ever-moving market. Milloy believes bosses can utilise data through automation to foresee potential problems before they become issues.
“No one likes surprises. Whilst Ben Franklin suggested nothing can be said to be certain, except death and taxes, businesses will want to automate as many of their processes as possible to help manage volatility in 2023,” he explains. “Data breeds intelligence, and intelligence breeds insight. Managers can use the data available from workforce automation tools to help them manage peaks and troughs better to avoid unexpected resource bottlenecks.”
20. A human AI co-pilot will still be needed
Artem Kroupenev, VP of Strategy at Augury, predicts that within the next few years, every profession will be enhanced with hybrid intelligence, and have an AI co-pilot which will operate alongside human workers to deliver more accurate and nuanced work at a much faster pace.
“These co-pilots are already being deployed with clear use cases in mind to support specific roles and operational needs, like AI-driven solutions that enable reliability engineers to ensure production uptime, safety and sustainability through predictive maintenance,” he says. “However, in 2023, we will see these co-pilots become more accurate, more trusted and more ingrained across the enterprise.
“Executives will better understand the value of AI co-pilots to make critical business decisions, and as a key competitive differentiator, and will drive faster implementation across their operations. The AI co-pilot technology will be more widespread next year, and trust and acceptance will increase as people see the benefits unfold.”
21. Building the right workplace culture
Harnessing a positive workplace culture is no easy task but in 2023 with remote and hybrid working now the norm, it brings with it new challenges. Tony McCandless, Chief Technology Officer at SS&C Blue Prism, is well aware of the role organisational culture can play in any digital transformation journey.
“Workers are the heart of an organisation, so without their buy in, no digital transformation initiative stands a chance of success,” explains McCandless. “Workers drive home business objectives, and when it comes to digital transformation, they are the ones using, implementing, and sometimes building automations. Curiosity, innovation, and the willingness to take risks are essential ingredients to transformative digitalisation.
“Businesses are increasingly recognising that their workers play an instrumental role in determining whether digitalisation initiatives are successful. Fostering the right work environment will be a key focus point for the year ahead – not only to cultivate buy-in but also to improve talent retention and acquisition, as labor supply issues are predicted to continue into 2023 and beyond.”
22. Cloud cover to soften recession concerns
Amid a cost-of-living crisis and concerns over any potential recession as a result, Daniel Thomasson, VP of Engineering and R&D at Keysight Technologies, says more companies will shift data intensive tasks to the cloud to reduce infrastructure and operational costs.
“Moving applications to the cloud will also help organisations deliver greater data-driven customer experiences,” he affirms. “For example, advanced simulation and test data management capabilities such as real-time feature extraction and encryption will enable use of a secure cloud-based data mesh that will accelerate and deepen customer insights through new algorithms operating on a richer data set. In the year ahead, expect the cloud to be a surprising boom for companies as they navigate economic uncertainty.”
23. IoT devices to scale globally
Dr Raullen Chai, CEO and Co-Founder of IoTeX, recognises a growing trend in the usage of IoT devices worldwide and believes connectivity will increase significantly.
“For decades, Big Tech has monopolised user data, but with the advent of Web3, we will see more and more businesses and smart device makers beginning to integrate blockchain for device connectivity as it enables people to also monetise their data in many different ways, including in marketing data pools, medical research pools and more,” he explains. “We will see a growth in decentralised applications that allow users to earn a modest additional revenue from everyday activities, such as walking, sleeping, riding a bike or taking the bus instead of driving, or driving safely in exchange for rewards.
“Living healthy lifestyles will also become more popular via decentralised applications for smart devices, especially smart watches and other health wearables.”
Todd Salmon, Executive Advisor for Strategic Services at GuidePoint Security, on the cybersecurity challenge of keeping up with the pace of the ever-changing digital world
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This month’s cover story explores how GuidePoint Security, an elite team of highly trained and certified experts, cut through cybersecurity chaos and confusion to put control back in customers’ hands.
Welcome to the latest issueof Interface magazine!
Interface welcomes in 2023 with a need-to-know list of what we can expect from technology this year and how it can allow enterprises to gain a competitive edge in a disruptive and increasingly digital world. Faced with everything from process mining and AI to quantum-readiness and the metaverse we cut through the hype to bring you the facts.
GuidePoint Security: digital transformation in cybersecurity
“Cybersecurity is in such a reactive mode because of the sheer volume of risks and vulnerabilities an organisation faces,” says Todd Salmon, Executive Advisor for Strategic Services at GuidePoint Security. “We see a lot of copycats and repeat attacks happen, but at the end of the day it’s all about creating solutions to help combat those problems.”
GuidePoint’s elite team of highly trained and certified experts, cut through cybersecurity chaos and confusion to put control back in customers’ hands. Helping them make the smartest, most informed cyber risk decisions, and choose and integrate the best-fit solutions to build the most effective cybersecurity program, Salmon discusses the challenge of keeping up with the pace of the ever-changing digital world.
bp: a strategic reinvention
“We are investing in digital to drive process efficiency and improve insights; but also to develop our people with the skills we need for now, and the future at bp. This means we are playing to win while caring for our people through investing in their personal development,” says Head of Strategic Transformation Nick Hales.
“After setting the right foundations through various remediation and compliance initiatives, we embarked on our digital transformation journey,” adds Strategy & Transformation Manager Emmanouela Vlachantoni. “There was a clear opportunity to standardise and streamline our controls environment to reduce complexity and increase insight.”
Fairfax County: winning the IT war with cybersecurity
Meanwhile, across the pond, we learn how Fairfax County in the State of Virginia is reaping the rewards of a cybersecurity program enabling government services and keeping citizens safe. “My role is to educate our leadership to ensure they understand the business value of cybersecurity as it relates to government services. Being accountable for the security of their systems and data is a key factor in developing a successful cyber program,” explains CISO Michael Dent.
Also in this issue, we round up the key tech events and conferences across the globe and, with the help of the experts at Fasthosts, take a deep dive into the metaverse… Can virtual reality become our reality? Read on to find out.
Nick Hales, Head of Strategic Transformation and Emmanouela Vlachantoni, Strategy & Transformation Senior Manager, on the journey to reinvent business processes that are reimagining bp
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This month’s cover story reveals how bp’s Strategic Transformation leaders are on a journey to reinvent business processes that are reimagining the energy giant.
Welcome to the latest issueof Interface magazine!
Our final issue of Interface for 2022 covers some of this year’s hot tech topics: digital transformation, cybersecurity, data & analytics, customer-centricity and more…
“We are investing in digital to drive process efficiency and improve insights; but also to develop our people with the skills we need for now, and the future. This means we are playing to win while caring for our people through investing in their personal development,” says Nick Hales.
“After setting the right foundations through various remediation and compliance initiatives, we embarked on our digital transformation journey,” adds Emmanouela Vlachantoni. “There was a clear opportunity to standardise and streamline our controls environment to reduce complexity and increase insight.”
Fairfax County: winning the IT war with cybersecurity
Meanwhile, across the pond, we learn how Fairfax County in the State of Virginia is reaping the rewards of a cybersecurity program enabling government services and keeping citizens safe. “My role is to educate our leadership to ensure they understand the business value of cybersecurity as it relates to government services. Being accountable for the security of their systems and data is a key factor in developing a successful cyber program,” explains CISO Michael Dent.
Piedmont Healthcare: data & analytics at the heart of growth
The power of data cannot be under-estimated… At Piedmont Healthcare Mark Jackson, Executive Director of Business Intelligence is building a data strategy driving speed to insight at scale. “Tool selection has played an important role in our ability to scale the BI program and deliver rapid insights in a dynamic environment.”
Also in this issue, CalArts CTO Allan Chen explains how an IT strategy based on coordination and collaboration is supporting six schools; Information Tech VP Fausto Sosa de la Fuente reveals the people-centric transformative IT process at construction industry giant CEMEX; and we take a look at the latest insights from McKinsey highlighting the lessons CEOs can learn from successful digital transformations.
John MClure, CISO at Sinclair Group – a diversified media company and America’s leading provider of local sports and news – talks about the evolution of cybersecurity and the cultural shift placing it at the forefront of business change
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This month’s cover story explores how Sinclair Broadcast Group is embracing the evolution of cybersecurity and placing the role of the CISO at the forefront of business transformation.
Welcome to the latest issueof Interface magazine!
Communication, secure and at speed, is a vital component of the transformation journey for both the modern enterprise and its relationship with stakeholders, be they customers or partners. Putting the right building blocks in place to deliver successful change management is at the heart of the inspiring stories in the latest issue of Interface.
Our cover star John McClure progressed from a career in the military and work as a consultant in the intelligence industry to fight a new kind of foe… As CISO for Sinclair Broadcast Group, a diversified media company and America’s leading provider of local sports and news, he talks about the evolution of cybersecurity, the battle to meet the rising velocity and sophistication of cyber-attacks and the cultural shift of the role of CISO placing it at the forefront of business change.
“Sinclair is unique in terms of its different business units and how it operates. It’s my job as CISO leading our cyber team not to be an obstacle for the business; we’re here to help it move faster to keep up with market forces, and to move safely. We’re here to engineer solutions that work for the enterprise but also help us maintain a positive security posture.”
State of Florida: digital government services
We also hear from CIO Jamie Grant who is leading the State of Florida’s Digital Service (FL[DS]) on its charge to transform and modernise the way government is accessed and consumed. He is building a team of talented, goal-oriented and customer-obsessed individuals to drive a digital transformation with innovation at its heart. “Leadership is really about developing the team and investing in the people. And it turns out that when you get their backs, they appreciate it and then you can achieve anything.”
ResultsCX: putting people first
Jamie Vernon, SVP for IT & Infrastructure at AI-powered customer experience solution specialist ResultsCX, discusses what drives customer care in the 21st century, and the part technology has to play.
“We are the custodians of our customers’ customers,” says Vernon. “In this increasingly tenuous relationship with their customers, they trust us. My leadership takes that responsibility very seriously, and charges each of us with doing everything we can to provide a perfect call, or email, or chat, every time, thousands of times a minute, around the clock and around the calendar.”
Jamie Vernon, SVP for IT & Infrastructure at AI-powered customer experience solution specialist ResultsCX, discusses what drives customer care in the 21st century, and the part technology has to play.
“We are the custodians of our customers’ customers,” says Vernon. “In this increasingly tenuous relationship with their customers, they trust us. My leadership takes that responsibility very seriously, and charges each of us with doing everything we can to provide a perfect call, or email, or chat, every time, thousands of times a minute, around the clock and around the calendar.”
Also this month, Sarita Singh, Regional Head & Managing Director for Stripe in Southeast Asia, talks about how the fast-growing payments platform is driving financial inclusion across Asia and supporting SMEs with end-to-end services putting users first, and we get expert advice for the modern CEO from the University of Oxford’s Saïd Business School.
Our cover story investigates how the latest cybersecurity technologies ensure the Commonwealth Bank and its customers are protected from cybercrime
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Our cover story this month charts how the Commonwealth Bank is strengthening its cybersecurity posture to protect 16 million customers
Welcome to the latest issue of Interface magazine!
Cybersecurity, and the need to share data safely and securely, goes beyond the day to day requirements of one organisation, it’s about enterprises at all levels collaborating to develop an ecosystem for the greater global good.
Our cover star Memo Hayek, General Manager Group Cyber Transformation & Delivery at CommBank, is leading a team on such a journey while executing the technology transformation required to fortify cybersecurity for CommBank. Leveraging the latest cutting-edge technologies from partners including AWS and Palo Alto Networks – in demand as the global attack surface grows – Hayek is flying the flag for women in STEM careers and delivering the strategies to ensure the bank, its Australian community and the wider global economy are protected from cybercrime.
https://www.youtube.com/watch?v=jQNXY2duLZs
Philip Morris International
Also in this issue, we learn how Philip Morris International (PMI) is instigating a digital revolution in the travel retail sector, merging the physical and online worlds by implementing a number of CX-driven initiatives framed around PMI’s IQOS brand which is helping smokers to non-smoke products.
Valtech
We hear again from global business transformation agency Valtech on its efforts to embrace diversity across the length and breadth of its organisation to make it better able to provide solutions that touch all of society. Una Verhoeven, VP Global Technology, gives her perspective on the diversity debate and how that’s further supported in the technological evolution with the rise of composable architecture.
Digital Transformation
Elsewhere, we discover how biotech firm Debiopharm’s digital transformation journey is ushering in a new era for drug development and clinical trials. We also reveal the innovative global IT transformation plans of market-leading tile manufacturer Terreal.
Our exclusive cover story this month takes a drive down the information superhighway with Auto Club Group and the Automobile…
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Our exclusive cover story this month takes a drive down the information superhighway with Auto Club Group and the Automobile Association of America.
Welcome to the latest issue of Interface magazine!
A customer centric approach to the creation and deployment of digital services is something that unites the business transformation journeys we explore in this issue of Interface.
Our cover story examines how one of the oldest organisations in the US – the Automobile Association of America (AAA) – and Auto Club Group, among its largest affiliates, are building trust in technology through cybersecurity to support more than 14 million members with a range of digital services. Chief Information Security Officer, Gopal Padinjaruveetil, explains: “Cybersecurity can be the brake in the information vehicle so a business doesn’t have to slow down, enabling it to accelerate change with confidence without putting the organisation, and its members, at risk.”
Elsewhere, we discover how insurance giant Generali is leveraging analytics and AI on a global scale for a structured approach to insurance services delivering long term security and peace of mind for its customers as a lifetime partner.
Delivering innovation on a global scale, SAP’s customer-centric business technology platform currently serves 91% of the organisations making up the Forbes Global 2000, while a staggering 70% of all global transactions touch an SAP system. We find out more…
Also in this issue, we hear from Insider on why Apple’s iOS15 update will impact ecommerce and data gathering; we get the lowdown from EY on the four key steps organisation should take to accelerate their digital transformation and learn from Pulsant how to identify and achieve your business transformation goals.
Martin Riley, Bridewell Consulting’s Director of Managed Services, explains why a cyber security strategy can future proof your business and provide the platform for a successful digital transformation
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Regardless of sector, digital transformation has become a business necessity for organisations in 2021. Described as the most important trend in business today, 65% of the globe’s GDP is expected to be digitalised by the end of 2022. And with promised benefits including improved operational efficiency, agility and employee productivity, it’s no surprise that businesses are going digital.
However, while there’s no denying the importance of digital transformation, different levels of organisational maturity can lead to different approaches and this is particularly apparent when it comes to security. Many organisations often take a reactive approach, whereby business and technology transformation are the priority and security is only considered afterwards. However, the risks from putting security on the backburner can be numerous, including higher costs and extended timelines to retrofit crucial security fixes.
Martin Riley
More mature companies have a different approach – one that puts security transformation first, ahead of digital transformation, to ensure the best possible future-proofed outcome. Their success is now providing a valuable proven blueprint for other firms to follow. So, to reap the benefits of this approach where should you start?
Shift your mindset
Before embarking on any transformation, it’s imperative to get your strategy right. Move away from thinking purely about digital transformation and cyber security as separate strategies and instead develop a cyber security transformation strategy. This will ensure that you can reduce risk and improve your cyber resilience, even as your attack surface grows.
It may be that security transformation becomes the driver of your digital transformation. For example, if you have identified vulnerabilities within your legacy IT infrastructure that necessitates a need to move critical data to the cloud.
Take critical national infrastructure as an example… The convergence of IT and Operational Technology (OT) as well as increased legislative requirements, such as the Network and Information Systems (NIS) Regulation, is driving a clear need for cyber security transformation. Organisations need to adapt to gain a holistic view of cyber security across physical OT and cloud systems before transformation can take place.
Understand your risks
Digitalising your business ultimately introduces new risks. For example, new digital channels can broaden your attack service, while poorly configured cloud-based infrastructure can pose easy targets for cyber attackers. There’s also risks from the internet of Things (IoT) which increases sensitive data proliferation (and by association, vulnerabilities), as well as authentication and access risks posed by remote working and connected supply chains. Before embarking on a transformation plan, you need to understand the security implications of any changes.
Assume zero-trust
In order to ensure that security is front of mind in your transformation you need to adopt a philosophy of a zero trust, where no individual or device is trusted. This involves verification by authenticating and authorising based on all available data points, utilising just-in-time and just-enough-access to limit user access and using analytics to drive threat detection. Not only does this help businesses to be prepared for cyber threats, but also articulates the value of security transformation to other departments.
Embed security from the outset
It can be tempting to simply keep investing in a growing number of security technology tools as and when your transformation takes place. However, all too often there is little integration, overlap and there are gaps in the coverage these tools offer. And while a well-configured set of security tools can provide coverage, many drive threat alerts that are false positives or benign positives, leading to fatigue and alert blindness. Instead, ensuring security is a critical part of the initial design of your transformation strategy.
Use security intelligence to your advantage
Move away from a focus on prevention to response and make security intrinsic throughout the business by implementing proactive measures such as Managed Detection and Response (MDR). By combining human analysis, artificial intelligence and automation to rapidly detect, analyse, investigate and actively respond to threats, MDR can encourage alignment of security transformation with digital transformation.
Cyber Technology Security Protection Monitoring
An adaptive and customisable security model, MDR can be deployed rapidly and cost-effectively as a fully outsourced service or via a hybrid SOC. It helps develop a reference security architecture that enables you to safeguard on-premise and legacy systems, cloud-based infrastructure applications and SaaS solutions, whilst also protecting and responding to new security and user identity threats as well as reducing cyber risk and the dwell time of breaches.
Engage third party support
Finally, don’t neglect to seek help from outside your organisation. By engaging a security architect early on in your project lifecycle, you can benefit from robust and detailed analysis and expertise to ensure the correct decisions are made, tracked and traced from beginning to end. They can also help you understand the interdependencies across your IT estate, identify risks and suggest best practice, as well as legal and regulatory obligations to ensure you continue to be able to withstand a range of cyber attacks throughout your transformation.
Reaping the rewards of cyber security transformation
Every business is on a digital transformation journey, regardless of size or objectives. However, as organisations transform, so do technology and cyber threats. Those that fail to adopt a more proactive and efficient system for mitigating risks and handling, responding, detecting and learning from cyber security attacks will find themselves falling behind and the security function unable to keep up.
Ultimately, cyber and digital security should be thought of as inseparable – and those that can plan and integrate both into their transformation projects from the very beginning will be in the strongest position to succeed and future-proof their business.
By implementing a robust cyber security transformation process and proactive security measures, such as MDR that can support secure digital transformation, you can reap the benefits of a stronger, structured system for managing, isolating and reducing threats and continue to pivot, transition and serve in the new digital economy without leaving security on the side-lines.
Bridewell Consulting
Bridewell Consulting is a specialist cyber security and data privacy consultancy. NCSC Certified and CREST accredited, it provides reliable, high-quality security and risk consulting services; helping its customers protect not just their data, but their reputation, customer trust and bottom line. Providing four core service areas: cyber security, data privacy, penetration testing/red team assessments and managed security services, Bridewell’s expert team of professionals possess specialist industry experience and proven capabilities. They can deliver effective cyber security and data privacy services across financial services, pharmaceutical, manufacturing, technology, retail, media, government, aviation and 24×7 critical services. As a vendor agnostic business, Bridewell is able to effectively and honestly engage with business executives and provide advice, guidance and services in a way that is most appropriate for each organisation, ensuring that proposed solutions are aligned with its clients’ strategy, business objectives and the wider IT architecture.
Learn more about emerging trends across the tech panorama in the latest issue of Interface
Three in four senior corporate executives believe increasing financial investment is necessary to protect intangible trade secrets, according to new analysis commissioned by global law firm CMS and conducted by The Economist Intelligence Unit…
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A new report released today commissioned by global law firm CMS and conducted by The Economist Intelligence Unit reveals that trade secret protection is rapidly rising up the corporate agenda as firms widely recognise the commercial imperative to protect vulnerable assets in light of more business conducted online and across borders.
With more companies relying on an ever-greater proportion of intangible or ‘secretive’ assets, the findings show a marked shift in how executives are planning to tackle employee leaks, supply chain vulnerability, corporate espionage and cyber-attacks. According to a global survey of 314 senior executives across a range of industries, the three most valuable types of proprietary information held by organisations are customer databases (42%), product technology (40%), and R&D information (23%).
The report, ‘Open secrets? Guarding value in the intangible economy’, reveals that trade secret protection is no longer just a concern for the legal department, but a top priority at the board and C-suite level. The majority (75%) of respondents agree that increasing financial investment was necessary to protect their trade secrets. Measures must be taken to raise awareness of these assets more widely among employees, with 28% of respondents viewing a lack of in-house experience with trade secrets as a safeguarding challenge.
The most significant threats to the security of trade secrets are weaknesses in cybersecurity (49%) and employee leaks (48%). As firms increasingly store and share sensitive information across virtual and distributed workforces, companies face a range of unpredictable insider threats, including intentional leaks from disgruntled employees. This is the biggest concern for the UK, whilst the fear of cybercrime is front-of-mind for business leaders in France, China and the US, worsened by poor internal cybersecurity expertise.
Tom Scourfield, Co-Head of IP Group at CMS said: “Fifty years ago, a company’s value was derived solely from its physical capital. Today, the world’s most successful firms are built on intangible assets that are often secretive by nature – algorithms, customer data, product formulae. This report shows that firms must start taking a more holistic approach to protecting these intangible assets, from computer software to company valuesbalancing restrictions with incentives – and importantly engage every level of their workforce. Without this strategy, protecting trade secrets will remain an uphill battle for many.”
Significantly, four out of five of the top measures that companies are planning to implement over the next two years focus on minimising employee leaks. These range from harsher measures such as closer surveillance of employee’s electronic activity through to more collaborative approaches that centre on improving the company culture and introducing innovative staff incentives.
“Willingness to snoop” is highest in China, Singapore and the United States. It is also a top preferred measure for executives in Technology, Media and Telecommunications, with 36% of respondents planning to implement surveillance over the next two years, reflecting the growing tensions between employers and employees in the technology sector. Efforts to improve work culture are clearly felt more widely in other industries, with almost a third (31%) calling for corporate values to shift towards encouraging trade secret protection.
As companies become increasingly wary of cybercrime and ransomware attacks, the majority (82%) agree that leveraging cybersecurity software is key to protecting their organisation in the long-term. However, only half (53%) believe it is the most effective deterrent or have already restricted digital and physical access to confidential information (55%).
Hannah Netherton, Employment Partner at CMS adds: “It’s overwhelmingly clear that the threat of employee leaks is driving a need for new strategies to guard valuable assets. Companies must find the right balance between perfecting their cybersecurity protections and creating a healthy company culture that incentivises trade secret protection and encourages speaking up through appropriate channels – even the most rigorous of protocols won’t prevent every employee leak or a disgruntled whistleblower.
“The pandemic has opened doors to a digital workspace, where it’s easier for employees to accidentally or purposefully access and expose confidential information. It is impossible to protect trade secrets if employees are not aware of the sensitivities around these assets, so putting the right values and measures in place has never been more important to an organisation’s success.”
Aukje Haan, Co-Head of Commercial at CMS added: “With the introduction of the Directive on Trade Secrets, businesses will get a range of options to safeguard their most prized proprietary information. However, there are prerequisites to be able to invoke those options. Identifying and taking reasonable steps will be crucial, from NDAs, cybersecurity efforts through to employee regulation, as well as specific requirements depending on the nature of the business, e.g., online businesses will need to take more cybersecurity measures whereas manufacturing companies will need to take more physical measures on the factory floor.“
Governments around the world have highlighted supply chains as an area for urgent attention in tackling cyber risk in the coming years…
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Business ecosystems have expanded over the years owing to the many benefits of diverse, interconnected supply chains, prompting organizations to pursue close, collaborative relationships with their suppliers. However, this has led to increased cyber threats when organizations expose their networks to their supply chain and it only takes one supplier to have cybersecurity vulnerabilities to bring a business to its knees. To this point governments around the world have highlighted supply chains as an area for urgent attention in tackling cyber risk in the coming years.
Looking beyond your own perimeter
Over the last few years, many organizations have worked hard to improve their cyber defenses and are increasingly “harder targets”. However, for these well-defended organizations, now the greatest weaknesses in their defenses are their suppliers, who are typically less well-defended but with whom they are highly interconnected.
At the same time, the cyber threat landscape has intensified, and events of the past year have meant that security professionals are not only having to manage security in a remote working set up and ensure employees have good accessibility, they are also having to handle a multitude of issues from a distance whilst defending a much broader attack surface. As a result, points of vulnerability have become even more numerous, providing an attractive space for bad actors to disrupt and extort enterprises. Threats have escalated, including phishing and new variants of known threats, such as ransomware and Denial of Service (DDoS) attacks, as well as increases in supply chain attacks.
But where supply chains are concerned, it is nearly impossible to effectively manage this risk unless you know the state of your suppliers’ defences and continually ensure that they are comparable to your own. Organizations must deeply understand the cyber risks associated with the relationship and try to mitigate those risks to the degree possible.
However, that’s easier said than done. With the sending and receiving of information essential for the supply chain to function, the only option is to better identify and manage the risks presented. This requires organizations to overhaul existing risk monitoring programs, technology investments and also to prioritize cyber and data security governance.
Ensuring the basics are in place
At the very least organizations should ensure that both they and their suppliers have the basic controls in place such as Cyber Essentials, NIST and ISO 27001, coupled with good data management controls. They should thoroughly vet and continuously monitor supply chain partners. They need to understand what data partners will need access to and why, and ultimately what level of risk this poses. Likewise, they need to understand what controls suppliers have in place to safeguard data and protect against incoming and outgoing cyber threats. This needs to be monitored, logged, and regularly reviewed and a baseline of normal activities between the organization and the supplier should be established.
As well as effective processes, people play a key role in helping to minimize risk. Cybersecurity training should be given so that employees are aware of the dangers and know how to spot suspicious activity. They should be aware of data regulation requirements and understand what data can be shared with whom. And they should also know exactly what to do in the event of a breach, so a detailed incident response plan should be shared and regularly reviewed.
IT best practices should be applied to minimize these risks. IT used effectively can automatically protect sensitive data so that when employees inevitably make mistakes, technology is there to safeguard the organization.
Securely transferring information between suppliers
So how do organizations transfer information between suppliers securely and how do they ensure that only authorized suppliers receive sensitive data? Here data classification tools are critical to ensure that sensitive data is appropriately treated, stored, and disposed of during its lifetime in accordance with its importance to the organization. Through appropriate classification, using visual labelling and metadata application to emails and documents, this protects the organization from the risk of sensitive data being exposed to unauthorized organizations further down the line through the supply chain.
Likewise, data that isn’t properly encrypted in transit can be at risk of compromise, so using a secure and compliant mechanism for transferring data within the supply chain will significantly reduce risks. Managed File Transfer (MFT) software facilitates the automated sharing of data with suppliers. This secure channel provides a central platform for information exchanges and offers audit trails, user access controls, and other file transfer protections.
Layering security defenses
Organizations should also layer security defences to neutralize any threats coming from a supplier. Due to its ubiquity, email is a particularly vulnerable channel and one that’s often exploited by cybercriminals posing as a trusted partner. Therefore, it is essential that organizations are adequately protected from incoming malware, embedded Advanced Persistent Threats, or any other threat that could pose a risk to the business.
And finally, organizations need to ensure that documents uploaded and downloaded from the web are thoroughly analyzed, even if they are coming from a trusted source. To do this effectively, they need a solution that can remove risks from email, web and endpoints, yet still allows the transfer of information to occur.
Adaptive DLP allows the flow of information to continue while removing threats, protecting critical data, and ensuring compliance. It doesn’t become a barrier to business or impose a heavy management burden. This is important because traditional DLP ‘stop and block’ approaches have often resulted in too many delays to legitimate business communications and high management overheads associated with false positives.
Cyber criminal attacks set to rise
Many of the recent well publicized attacks have been nation state orchestrated. Going forward this is going to turn into criminal syndicate attacks. Cybercriminals already have the ransomware capabilities and now all they need to do is tie this up with targeting the supply chain. Therefore, making sure you have the right technologies, policies and training programs in place should be a top priority for organizations in 2021. If you are interested in finding out more about protecting your supply chain, why not download our eGuide: “Managing Cybersecurity Risk in the Supply Chain.”
With industrial organisations ramping connectivity to accelerate digital transformation and remote work, threat actors are weaponising the software supply chain and ransomware attacks are growing in number, sophistication and persistence.
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A new report from Nozomi Networks Labs finds cyber threats to industrial and critical infrastructure have reached new heights as threat actors double down on high value targets. With industrial organisations ramping connectivity to accelerate digital transformation and remote work, threat actors are weaponising the software supply chain and ransomware attacks are growing in number, sophistication and persistence.
“This report leaves no doubt that the time for action is now,” said Nozomi Networks Co-founder and CTO Moreno Carullo. “The recent Oldsmar, Florida, water system attack and the ongoing SolarWinds investigation are dramatic reminders that the critical infrastructure and other systems that we rely on are vulnerable and at constant risk of attack. Understanding the effectiveness of defenses against the emerging threat and vulnerability landscape is vital to success.”
Nozomi Networks’ latest “OT/IoT Security Report,” gives cybersecurity professionals an overview of the OT and IoT threats analysed by Nozomi Networks Labs security research team. The report found:
Ransomware activity continues to dominate the threat landscape, growing in sophistication and persistence. In addition to demanding financial payments, Ryuk, Netwalker, Egregor and other ransomware gangs are exfiltrating data and deeply compromising networks for future nefarious activities.
Supply chain threats and vulnerabilities show no signs of slowing. The unprecedented SolarWinds attack not only infected thousands of organisations including U.S. Government agencies and critical infrastructure, but it also demonstrates the massive potential for attack via supply chain weaknesses.
Threat actors are targeting healthcare. Nation states are using off-the-shelf red team tools to execute attacks and perform cyber espionage against facilities involved with COVID-19 research. Ransomware crews are targeting healthcare providers and hospitals, in some cases disrupting patient treatment.
Analysis of 151 ICS- CERTs published in the last six months found memory corruption errors are the dominant vulnerability type for industrial devices.
“Urgency has never been higher. As industrial organisations race toward digital transformation, threat actors are taking advantage of greater OT connectivity to create attacks that aim to disrupt operations and threaten the safety, profitability and reputation of enterprises around the globe,” said Nozomi Networks CEO Edgard Capdevielle. “While threats may be on the rise, the technologies and practices to defeat them are available today. We encourage organisation to act quickly to implement the recommendations in this report. It’s never been more important or more possible to take the necessary steps to detect and defend critical infrastructure and industrial operations.”
Nozomi Networks’ “OT/IoT Security Report” summarises the biggest threats and risks to OT and IoT environments. The report provides information on 18 specific threats that IT and OT security teams should study as they model threat vectors and evaluate risks across operational technology systems. It includes 10 key recommendations and actionable insights to improve defenses against the current threat landscape.
A global shift to remote working has accelerated digital transformation and prompted a higher degree of focus on cybersecurity, according to Kaspersky’s latest report.
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A global shift to remote working has accelerated digital transformation and prompted a higher degree of focus on cybersecurity, according to Kaspersky’s latest report.
Transitioning from a corporate office environment to working from home, coupled with financial restraints due to economic recession, has seen challenges presented to cybersecurity experts not many had seen before.
From February to March 2020, a 569% growth in malicious website registrations was detected and reported to INTERPOL, including malware and phishing. In April, there was a huge spike in ransomware attacks by multiple threat groups that had been previously dormant for months.
Cybercrime threats are expected to rise as more opportunities present themselves in the coming months. Fake vaccine registration websites will aim to steal data, whilst business email compromise schemes aim to take advantage of the economic downturn and shift in the business landscape.
Protecting the perimeter of a company is no longer enough: there is a desperate need now for home office assessment with tools to scan the level of security. Discouraging poor internet practices such as connecting to an unprotected Wi-Fi hotspot should be top of the list, with VPNs and multifactor authentification systems being offered as a solution.
With an increased reliance on cloud technology and services, dedicated management and protection measures are now a necessity for businesses. Around 90% of employees use non-corporate software and cloud services, such as messaging apps, and this is unlikely to change any time soon.
To ensure that any corporate data is kept under control, better visibility over cloud access will be necessary. IT security managers will need to align themselves with this cloud paradigm and develop skills for cloud management and protection.
This is why, according to Kaspersky, the quality of protection is “no longer up for discussion.”
“Quality protection is now a must have,” report Alexander Moiseev, Chief Business Officer at Kaspersky.
“Another major trend is that deep integration between various components of corporate security, ideally from a single vendor, now plays a bigger role. For instance, there was a long-held belief in the industry that various specialised solutions from various vendors can help create the best combination for protection.
“Now, organisations are looking for a more unified approach with maximum integration between different security technologies.”
You can read Ksapersky’s “Plugging the gaps: 2021 corporate IT security predictions” report in full HERE.
James Hall, Commercial Director, Striata UK, explores the threats customers face and how to combat them.
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With cybercrime escalating in volume and sophistication every year, consumer trust is a bigger challenge for organisations than it’s ever been. And while legislation such as the EU General Data Protection Regulations (GDPR) and California Consumer Privacy Act (CCPA) have made things simpler by setting minimum standards for organisations to adhere to, they need to do more to truly guarantee trust.
They should not, for instance, assume that their responsibility is over once a document has been delivered safely to the customer. If a customer’s personal devices are unsecured, there is still a risk that one gets hacked or stolen. This means that confidential information sent by the organisation could find its way into the public eye, or worse, get exploited for criminal purposes. Even if the organisation’s own security protocols are watertight, it could still end up shouldering the blame or have its reputation tarnished.
When considering why it’s so important for organisations to protect customer communication even once it’s on the end device, it’s worth remembering just how many threats customers face.
The millions of mobile phones stolen every year alone represent a massive danger of identity theft. That’s before even getting to the number of people every year who fall victim to phishing scams or who have their information compromised after inadvertently installing malware.
According to Kaspersky Labs, the number of unique malicious objects detected by its web antivirus solution reached 24,610,126 in 2019. Some 85% of web threats detected were malicious URLs making the risk of a customer unwittingly clicking on a URL an ever present threat to data protection.
In short, while organisations have never been more aware of the need to keep their customer data safe internally, the threat to that data once it’s on the customer’s device continues to increase.
Data protection by design
One solution to mitigate these threats is for organisations to bake data protection into the design of their customer communications. Data protection by design is about considering data protection and privacy issues upfront in everything the organisation does, especially when it comes to customer communication. This not only ensures compliance with relevant legislation, it can save the organisation reputational damage and, ultimately, revenue.
But what does data by design look like practically?
Well, encryption and password protection should be non-negotiable for starters. Encrypting and protecting important documents ensures that even when it resides on the customer’s smartphone or laptop, the information cannot be easily accessed if the device is stolen or hacked.
Encryption is a process that encodes a message or file so that it can only be read by the intended recipient. Encryption scrambles, or encrypts, data which the receiving party can only unscramble, or decrypt, using a key (a string of values or an application).
Password protection, meanwhile, means a document cannot be opened without entering a shared secret known only to the sender and recipient. Requiring a password to access a secured document not only adds another layer of protection, but has other benefits. In the unlikely event that a document is sent to the wrong person, the incorrect recipient cannot open the document (personal information remains private) thereby avoiding a data breach.
Customer education is key
While it’s obviously important that the organisation does everything in its power to protect and encrypt information, customer education remains the most powerful weapon in its arsenal. Cybercriminals can find their way around new technologies, but tech-savvy customers are much harder to crack.
If an organisation can help its customers avoid risky behaviour and protect their personal information, no matter where it sits, they’re much less likely to fall victim to cybercrime. That, in turn, means reduced reputational and financial risk.
As existing technologies reach maturity and innovations make the leap from consumer applications to business (and vice versa), it’s imperative…
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As existing technologies reach maturity and innovations make the leap from consumer applications to business (and vice versa), it’s imperative that we constantly seek to find those that have the potential to add value to our own business and those of our customers. As we look ahead to 2020, Johan Paulsson, CTO, Axis Communications has identified five trends that will have an impact on the physical security industry.
The world on the edge We are seeing a growing momentum towards computing at the ‘edge’ of the network[1]. More of the devices that are connected to the network require or would benefit from the ability to analyse received data, make a decision and take appropriate action. Autonomous vehicles are an obvious example. Whether in relation to communications with the external environment or through sensors detecting risks, decisions must be processed in a split second. It is the same with video surveillance. If we are to move towards the proactive rather than reactive, more processing of data and analysis needs to take place within the camera itself.
Processing power in dedicated devices Dedicated and optimised hardware and software, designed for the specific application, is essential with the move towards greater levels of edge computing. Connected devices will need increased computing power, and be designed for purpose from the ground up with a security first mindset. The concept of embedded AI in the form of machine and deep learning computation will also be more prevalent moving forwards.
Towards the trusted edge Issues around personal privacy will continue to be debated around the world. While technologies such as dynamic anonymization and masking[2] can be used on the edge to protect privacy, attitudes and regulation are inconsistent across regions and countries. The need to navigate the international legal framework will be ongoing for companies in the surveillance sector. Many organizations are still failing to undertake even the most basic firmware upgrades, yet with more processing and analysis of data taking place in the device itself, cybersecurity will become ever more critical.
Regulation: use cases vs technology Attitudes towards appropriate use technology cases and the regulations around them differ around the world. Facial recognition might be seen as harmless and even desirable. However, when used for monitoring citizens and social credit systems it is regarded as much more sinister and unwanted. The technology is exactly the same but the case is vastly different. Regulations are struggling to keep pace with advances in technology. It’s a dynamic landscape that the industry will need to navigate, and where business ethics[3] will continue to come under intense scrutiny.
Network diversity As a direct result of some of the regulatory complexities, privacy and cybersecurity concerns, we’re seeing a move away from the open internet of the past two decades. While public cloud services will remain part of how we transfer, analyse and store data, hybrid and private clouds are growing in use. Openness and data sharing was regarded as being essential for AI and machine learning, yet pre-trained network models can now be tailored for specific applications with a relatively small amount of data. For instance, we’ve been involved in a recent project where a traffic monitoring model trained with only 1,000 photo examples reduced false alarms in accident detection by 95%.
Critical guide published today calls for effective cyber security lifecycle management of IoT devices to improve the security of retail…
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Critical guide published today calls for effective cyber security lifecycle management of IoT devices to improve the security of retail systems and the protection of customer data in a stringent GDPR era.
Axis Communications, the market leader in network video technology, has published its latest whitepaper, Cyber security: the biggest threat to retail which highlights the increasing threat posed by cyber-attacks to today’s retail industry. The paper documents the measures that should be understood by data controllers, loss prevention & security personnel through to heads of operations to ensure the highest levels of security and provide the appropriate education and training for all key stakeholders to effectively mitigate the mounting cyber security threat.
The growth in and use of IoT devices and cloud technologies have opened up boundless possibilities for modern retail organisation across physical and digital platforms. However, customer data is at the heart of a frictionless shopping experience and presents an attractive commodity to cybercriminals, with attacks growing in number on those retailers whose systems are inadequately secured. It has been reported that in the last 12 months there have been 19 significant data breaches[1], which present a major risk for both retailers and customers.
In addition to the
immediate disruption and downtime a breach can cause, the damage to the
reputation of a business or brand can be lifelong. Furthermore, GDPR related
fines from the ICO can now be as much as €20m or 4% of global annual turnover,
whichever is higher, and demands that necessary steps be taken to guard against
attack and protect existing infrastructure. Axis’ whitepaper creates awareness
of the challenges being faced and looks at how effective cybersecurity
lifecycle management of IoT devices will help to better manage security and
ultimately maintain customer trust.
“Any organisation that
generates or manages personally identifiable information (PII), effectively any
data that could potentially identify a specific individual, must comply with
GDPR. Establishing a truly secure retail solution can only be accomplished if
security has been analysed at every stage. The key is to ensure that everyone involved
understands the security implications of a breach and how to prevent one.
Collaboration with system vendors, integrators and installers is also hugely
important, and conversations across the supply chain will ensure requirements
are met and security risks are adequately addressed,” Steven Kenny, Industry
Liaison Architecture and Engineering, Axis Communications.
Alongside greater awareness
of the need to comply with the GDPR, the Axis whitepaper stresses the
importance of looking to guard against system vulnerabilities by working with
trusted vendors who can install only those security technologies that are
deemed to be Secure
by Default. These technologies have been built from the ground up with
cybersecurity considerations at the forefront. Technologies that are cyber
secure offer peace of mind when connected to a network, and come with
assurances that stringent guidelines are followed during the design and
manufacturing process. Surveillance camera technology designed and manufactured
in this way assures retailers that these security solutions will not be used as
a backdoor into the network; such is the risk of introducing non-secured
hardware.
Key points covered
in the retail whitepaper include:
Review of cybersecurity challenges – Supply chain attacks, IoT vulnerabilities, the impact of operational downtime
GDPR, data protection and privacy – Examining the necessary actions to ensure full compliance with the GDPR and DPA 2018
Video surveillance insights – Understanding how data analysis can inform security and business decisions, and supply chain evaluation
Managing security effectively – Processes and tools to help the design, development and testing of systems in accordance with cybersecurity principles
Converged security – A collaborative approach to addressing cybersecurity risks
“The retail industry is
deemed the most at risk to cyber threats. It is crucial to find the balance
between enhancing the customer experience and maintaining GDPR compliance;
providing adequate security whilst not violating customer privacy,” says Graham
Swallow, Retail segment lead, Northern Europe, Axis Communications. “While
video surveillance systems are a necessity within the retail environment, many
organisations have re-evaluated their entire strategy in order to ensure full
GDPR compliance. Retailers must be able to rely on technologies that support
their operational requirements and address associated risks, while at the same
time, supporting IT security policies.”
This whitepaper provides
retailers with expert guidance, highlighting the appropriate policies and
procedures around the cybersecurity of IoT devices, and reinforces the
importance of selecting trusted vendors and partners. Axis is passionate about
using technology to help create a smarter and safer world. This is demonstrated
by a commitment to helping retailers understand the benefits of connected
physical security systems that deliver on the promise of better protection of
the business and customer.
Data breaches are costly. According to a recent Ponemon Institute study, the average breach costs an organisation $3.86 million. A…
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Data breaches are costly. According to a recent Ponemon Institute study, the average breach costs an organisation $3.86 million. A separate study found that, although the share price of breach-affected companies shows its sharpest drop 14 days after the breach is made public, there is still a discernible impact on the organisation’s stock valuation three years post-event.
By Josh Lefkowitz, CEO of Flashpoint
Business impacts at this
level affect the fundamental financial performance and sustainability of an
organisation, which means cybersecurity must no longer be considered an IT
issue; it’s a matter for the board in its role as custodian of shareholder
value. By managing cyber risk as part of the overall organisational risk
strategy, boards can put it into a commercial context and drive the cultural
awareness of risk that is essential to promote cyber resilience across the
business.
Making the shift from technology-centric to business-centric risk
management
Elevating cyber risk
management to the board level is not without challenges, however. We are still
very much in the midst of a shift in mindset from a technology-centric to a
business-centric view of cyber threats. This can result in a disconnect: many
boards find it difficult to interpret the information they receive from the IT
team, while many IT functions struggle to understand what data the board really
needs to carry out effective oversight. This challenge was underlined by
EY interviews that found difficulties “obtaining relevant, objective and
reliable information, presented in business-centric terms…[and this] affects
board members’ ability to understand the risk facing their organisations and
evaluate management’s response to these risks.”
This area is where the
evolving role of the CISO—sitting between the business and the board—requires a
mix of skills. CISOs need both technical expertise in analysing and
interpreting threat metrics and technology performance, and the ability to
apply these skills in a broader business context for board directors so they
can deliver strategic cyber risk oversight and governance for the business.
Reporting to the board – from numbers to narrative
While increasingly boards
are factoring cyber skillsets into their succession planning when recruiting
new board members, most current board directors don’t have deep experience in
cybersecurity. This means that any metric-based reporting should be simple to
interpret, including auditable figures that provide an overview of the
organisation’s security posture.
Reports should also be
framed in terms of the impacts specific security incidents have on the
business. For example, a DdoS attack might cause reputational risk, operational
risk and strategic risk. And, of course, the flipside of risk is compliance, so
the board also needs to know how cybersecurity incidents could impact data
privacy and governance.
It’s the role of the board
to challenge senior management robustly in order to deliver effective
oversight, so CISOs should be ready to answer questions around the
organisation’s cybersecurity maturity and the frameworks established to manage
emerging threats.
However, while numbers and
frameworks are valuable in helping boards evaluate and audit cyber risk
posture, when it comes to setting a risk-aware culture, directors really need
deeper context around the types of threats specific to their organisation. If
board directors are given a window into the environment, tactics, and
motivational psychology of actors that target their sector and business, they
can better understand the risks themselves. Once that has been achieved, board
directors can become an asset to the CISO in promoting a cyber risk-aware
culture not just as a tick-box exercise, but because they have genuine
appreciation of the factors, and indeed actors, in play.
To achieve this board-level
buy-in, CISOs need to move from numbers to narrative to drive the message home.
This is where business risk intelligence provides the context that helps bring
risk to life.
It’s undoubtedly useful for
senior leaders to understand the frequency and type of the cyber-attacks the
business experiences, but it’s also valuable for them to know the extent to
which the organisation is the topic of conversation in the illicit online
communities that initiate those attacks.
Deep and dark web forums,
chat services, and other platforms are often where cybercriminals discuss
tactics to defraud or infiltrate the organisation. These types of venues are
also where company secrets, intellectual property, and stolen data may be
offered for sale. An overview of the company’s profile across the deep and dark
web, as well as other illicit online communities, and the kinds of tactics that
are being discussed, is a powerful way CISOs can help directors gain context to
understand what the business faces.
Illustrating third-party risk
Third-party risk, including
supply chain weaknesses, is a hot topic among board rooms as businesses realise
that keeping their own house in order is not enough. Intelligence gleaned from
illicit online communities can also be used to illustrate potential weaknesses
in, or threats to, partner organisations. This intelligence can help boards
meet objectives to manage supply chain risk.
Successful cyber risk
oversight by company boards relies on them receiving a combination of auditable
metrics, risk impact assessments and contextual information enabling them to
provide informed oversight of cyber risk. Greater understanding of the threat
actor environment also assists boards in leading a risk-aware culture across
the business, moving from a tick-box approach to a genuine cultural shift.
How digitalisation is bringing the fight to industrial security threats ~ It’s no longer a question of whether your business…
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How digitalisation is bringing the fight to industrial security threats ~
It’s no longer a question of
whether your business will be attacked, but rather when it will be attacked.
Cyber attacks, particularly those on public sector and utility businesses, are
now a regular, often daily occurrence. Here, Robin Whitehead, managing director
of systems integrator
Boulting Technology, explains how this is impacting the role of the chief
information security officer (CISO) and resulting in the need for end-to-end
digitalisation.
It’s a simple fact that data makes the modern economy turn.
Being the first business to take action, based on the insights gained from some
pivotal piece of information, gives businesses a distinct competitive
advantage. However, it’s also quickly becoming a fact of life that the same
data is being targeted by skilled cybercriminals intent on stealing this new
currency and even causing maximum damage to infrastructure.
We can see the potential scale of cyber crime if we look at
the number of data breaches made each month. For example, in December 2017,
security firm IT Governance reported that 33.8m records — including a mixture
of personal and business information — had been leaked around the world. In
November 2017, the number was 59m.
Sophisticated
cyber attacks
With the world facing the likes of WannaCry, Petya and NotPetya
in 2017, sophisticated cyber threats are the biggest technological fear in
2018. Although sectors such as financial services and the public sector are
most at risk, there have also been numerous high-profile attacks on utilities,
oil and gas and food manufacturing environments in recent years.
At 9:30am on 27 June, 2017, confectionary manufacturer
Cadbury was hit by a cyber attack, which halted production at its Hobart
factory in Australia. Computers at the facility were infected with the Petya
ransomware virus and displayed a message on the screen demanding payment in
cryptocurrency.
Later that same day, NotPetya — a variant of the Petya
virus — went on to do further damage to facilities across Europe. NotPetya exploits
a backdoor in the update system of a Ukrainian tax-preparation programme
running on Windows and used by around 80 per cent of all Ukrainian businesses.
It uses a vulnerability in the Windows operating system called
EternalBlue — originally believed to have been developed by the US National
Security Agency (NSA) — to encrypt the filesystem’s master file table (MFT),
preventing the system from locating its own files.
Launched on June 27, 2017 — on the eve of Ukraine’s
Constitution Day holiday — NotPetya quickly spread to networks in Russia,
France, Germany, Italy, Poland, the UK and the US and affected many sectors.
“It’s massive,” Christiaan Beek, a lead scientist and principal
engineer at McAfee, told WIRED about the situation in Ukraine. “Complete
energy companies, the power grid, bus stations, gas stations, the airport, and
banks are being targeted.”
The new CISO
It should come as no surprise then that the advice of IT
and security experts is now being sought at the highest levels of business. The
role of the chief information security officer (CISO) is also changing in
response. Acting as the head of IT security, the CISO has traditionally been
responsible for things like operational compliance and adherence to ISO
standards as well as performing IT security risk assessments and ensuring that
the business is using the latest technologies.
However, increasingly, the CISO must now also drive IT
security and strategy, guiding everyone from the shop-floor staff to the most
senior officials in the business on how best to protect them from cyberattacks.
The modern CISO now takes a seat at the boardroom table, ensuring business
continuity, come what may.
Modern CISOs need to be visionaries and good communicators
in their own right, exerting their influence at all levels of the business to
bring about long lasting technological and security change.
End-to-end digitalisation
For industrial businesses, this change cannot come soon
enough. The desire to integrate manufacturing networks with the outside world
and the increased use of smart data is driving efficiencies and cost savings in
sectors from food and beverage, pharmaceutical and automotive to utilities such
as gas, water and energy. At the same time, it’s also leaving them vulnerable
to attacks that can lead to business disruption and extended periods of downtime.
Part of the reason for this is that many businesses have
traditionally operated in silos, with information technology (IT) and
operational technology (OT) experts not historically well aligned to the same
objectives and outcomes. However, as we increasingly use more
internet-connected devices such as PLCs, HMIs, intelligent motor control
centres (MCCs), telemetry devices and smart meters — all relaying millions of
data points to centralised and often remote SCADA and ERP systems — it will
become crucial to take a joined-up approach to industrial operations. Cue
end-to-end digitalisation.
For many businesses, replacing hardware and software to
allow functionality such as standardised Fieldbus communications, real-time
cloud data, analytics and centralised control across every aspect of their operations
is neither a cheap undertaking nor one that is quick to enact.
After all, most engineering plant managers have built up a
complex system over many years, retrofitting new components and modules to
existing equipment. This is driving the need for end-to-end digitalisation,
moving away from fragmented system control, maintenance and upgrade towards a
holistic approach that encompasses system-wide transparency, alarms and notifications,
including analytics that can deliver actionable insights to improve process
efficiency.
At Boulting Technology we’re helping our customers
introduce cybersecurity measures to retrofitted equipment in existing
industrial setups. Our range of control systems, networking products,
intelligent motor control centres and more, form an integrated system that
gives engineers easy and secure access to their operation around the clock.
Ultimately, end-to-end digitalisation will help companies respond to attacks
and breaches in minutes rather than hours or days.
So, while we come
to the realisation that cyber attacks are simply a normal part of doing
business, take heed of your CISO’s advice and rethink your end-to-end
digitalisation strategy.
By Bernard Parsons, CEO of Becrypt The world of encryption is growing exponentially. Many smaller businesses, including those in the…
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By Bernard Parsons, CEO of Becrypt
The world of encryption is growing exponentially. Many smaller businesses, including those in the public sector supply chain, are looking at implementing encryption for the first time. This adoption has been driven by recent regulations such as GDPR, and the requirement to add encryption as a privacy-enforcing mechanism.
However, despite
the numerous security benefits that encryption offers, there are a number of
aspects for these businesses to consider. Based on the experience and feedback
that Becrypt has attained working closely with our customers, I have summarised
the top-five areas that small businesses should assess if they are looking at
adopting disk encryption in 2019, or if they’re looking at undertaking wider
rollouts of disk encryption.
Ease of use
Organisations
must look for products that are easy to use, easy and quick to install. These
are obvious requirements that are partly about reducing the time and expertise
required to install products in the first place. An important subsequent point
is also total cost of ownership. If a product is not easy to install, it is
usually a good indicator of a level of complexity that will remain as a
long-term business overhead.
The more
complex a product is, the more complexity there is to manage. This leads to
higher levels of required expertise. It also increases the potential for
support issues to occur over time. This drives up the product’s total cost of
ownership for the organisation.
Accessible support
Encryption
can be a business-critical asset, as well as a business-enabling technology.
It’s therefore important that you’re working with an organisation – whether that’s
a vendor or the vendor’s partner – that can offer good, and accessible technical
support.
Even if
you’re choosing a product that’s easy to use, i.e. that’s going to reduce the
amount of required technical support, you should still think about the
potential for requiring support over the total life of the product. In a couple
of years, you may be looking at doing something slightly differently, such as looking
at encrypting new devices that may be non-standard (such as RAID Servers).
Therefore, you will want to ensure that you can pick up a phone and talk to
someone with sufficient expertise.
The option
of phone-based support is important; being able to jump onto a call in a
reasonable amount of time and actually talk to an expert. Therefore, we’d
certainly recommend testing this process with a vendor or the partner before
you go ahead and procure.
Proof of encryption
It’s a good first
step to encrypt laptops, as organisations will always lose laptops. Encryption turns
what would potentially be an information-loss, into just the loss of a physical
asset. It protects the organisation’s information and addresses the organisation’s
liabilities.
However, under regulations such as the General Data Protection Regulation (GDPR), there is often a requirement to prove that devices actually were encrypted in the event of a loss. This addresses some of the reporting requirements within these regulations. Proving that a device loss is not an information loss and avoiding the need to undertake breach notification, is something you want to be able to think about in advance. If you’re deploying a product that includes centralised management, that functionality should already be there. But many small businesses will choose to deploy in a more stand-alone configuration. Deploying with a central management platform increases cost but also increases risk.
With standalone
installs, you should still ensure that that product has a reporting capability
of some kind, such as online. This allows the encryption status of your estate of
devices to be reported.
Extendibility
In the first
instance, you may be looking at deploying encryption within an estate of
Windows devices. As technology changes and refreshes, it could be the case
within a year or two that you have other requirements. You might need to manage
encryption on Mac devices, or on smartphones and mobile devices within that
same suite of products. Therefore, it’s a good idea to look for vendors that
have multi-platform offerings, helping to future-proof your technology choice.
This will ensure that you’re not tied to a vendor, but at least ensuring that
your existing vendor is an option as your requirements grow.
Using product certification and assurance schemes
It’s a good
step to encrypt devices and be able to prove that you’ve encrypted them.
However, there is an increasing regulatory requirement to demonstrate that
you’ve gone through some process of ensuring that the technology you’re
adopting represents best practice. For example, GDPR explicitly references ‘state-of-the-art’
technology.
To fully ensure
that you’re managing liabilities, you need to evidence that you’re not just
adopting technology, but that it’s appropriately ‘state-of-the-art’. Achieving
this level of confidence can only be done by looking at technology that has third-party
validation, normally through product assurance or certification. This provides
independent validation that the product is of an appropriate quality.
There are a
variety of common certification schemes relevant for encryption products. One of
these is the US standard, Federal Information Processing Standard (FIPS), which
ensures that algorithms have been correctly implemented. However, organisations
must be wary of adopting technology just because it has a FIPS certification. The
majority of products use the same algorithms, such as Advanced Encryption
Standard (AES). FIPS ensures that a third-party has validated that the vendor
has correctly implemented the algorithm. However, vendors can, and still do,
implement products inappropriately which leave vulnerabilities.
A good
example of such vulnerabilities in encryption products is within Solid State
Drives (SSDs). Recent research from Radboud University in The Netherlands has
highlighted vulnerabilities in not just one vendor, but a whole range of
vendors’ SSDs. Vendors can take shortcuts, which means that resulting vulnerabilities
can be discovered. In this case, researchers were able to bypass the encryption
within SSDs.
Organisations
are better off looking for certification schemes that are more comprehensive.
One example is the Commercial Product Assurance (CPA) scheme, run by the UK National
Cyber Security Centre (NCSC). CPA works alongside FIPS for validating algorithms,
but it says more about the overall product quality and implementation, looking
at the security architecture to make sure that it has been designed and
implemented in a sensible way.
It also looks
at the vendor coding and build standards, thereby reducing the risk of there
being a vulnerability in the product. The risk is never fully mitigated, but it
certainly goes down to a point that allows you to say that, as an organisation,
you are adopting best practice.
The importance of due diligence when adopting encryption
Organisations,
particularly SMEs, should consider these five key steps as they adopt encryption.
Alongside security and liabilities, they also need to be concerned about the
cost of being caught out by products with publicised vulnerabilities. Subsequently,
they also need to think about the cost of then changing to a different
solution.
Ultimately,
adopting encryption is not rocket science. During their studies, the
aforementioned researchers from Radboud University highlighted that
implementing encryption well is not easy, and it is easy to make mistakes. However, most good vendors, or their partners,
should be able to advise you on the above best practice steps to take.
