Let’s face it - the finance industry is like sweet, irresistible candy for cybercriminals. See the top five emerging threats to cybersecurity in the Australian finance industry and how we as IT and security professionals are mitigating these challenges.
It goes without saying that since the beginning of cybercrime, the threats to this sector are huge and ongoing. From a record spike in ransomware attacks, the ongoing threat of “inside jobs”, the harrowing dark web economy and large-scale data breaches, the consequences of these cyber incidents are devastating for organisations and clients alike.
In addition, the changing face of the digital landscape that rules the Australian finance industry has also meant that the entire sector has had to shift and adapt to rising challenges. Paired with the sophistication and advancement of cyber threats, here are the top 5 cybersecurity challenges that are currently impacting the industry.
1. The New and Improved Scope of Cyber Threats
Gone are the days where spotting a fake phishing email was easy enough to detect. Now with the help of AI, cyber threats have become increasingly more sophisticated, appearing totally legitimate even for the more trained eye. These threats not only prey on your technical vulnerabilities but they also exploit human weaknesses.
2. The Call Is Coming From Inside The House
The rise of insider threats in the finance industry poses a unique challenge entirely. This kind of threat brings with it a host of new risks that a traditional IT and cybersecurity setup might not mitigate alone. History will recount tales of million-dollar heists and hacks from employees wiring themselves money directly from client accounts or installing malicious malware on ATMs and scamming customers. It is even estimated that approximately 31% of security breaches in the finance sector are attributed to insider threats, further highlighting the need for more rigorous access controls and employee training.
3. Finding The Weakest Link
As financial institutions have become consequently more reliant on third-party vendors for numerous services, it has opened the floodgates for attack on more vulnerable systems within these vendors. By detecting and exploiting the weaknesses in the vendor’s security setup, cybercriminals can then more easily gain access to the network of the financial institution. To counteract this, it’s necessary to employ a more rigorous vetting process for vendors, along with more stringent monitoring of third-party security practices.
4. More Technology, More Problems
As the landscape of the finance industry changes to embrace new technologies, it concurrently expands the surface for which cybercriminals can attack. That’s not to say that these digital technologies are not important, as they allow finance businesses to scale and grow their scope. However, in the same breath, they can also introduce complexities that have the potential to undermine security if it’s not managed properly. Ultimately, there needs to be a firm handshake between investing in innovation as well as maintaining up-to-date, robust cybersecurity strategies.
5. Comply, or Face the Consequences
As one of the most heavily regulated industries in Australia, individuals in the finance sector are more often than not acutely aware of the weight that compliance holds in their day-to-day jobs. However, problems may arise if compliance to cybersecurity standards and regulations are not met as strictly as they are instructed to be. Even a small step away from mandated cybersecurity regulations leaves the window open for attack from cybercriminals. For example, poor management of access controls or even just using unsecured networks when viewing or entering sensitive information.
Ultimately, the solution to this relates back to the timeless advice – “prevention is the best remedy”. A proactive approach to financial cybersecurity, being aware of the risks and threats in the current landscape and working with an IT professional who knows and understands the nuances of the finance industry are all excellent ways to protect yourself, your organisation and your clients from the potential of cyberattack.
If you are looking for trusted IT solutions for financial services, get in touch with our experienced IT consultants in Australia today. We provide all sorts of business IT support to clients across Australia, trusted by businesses of all sizes since 1994. Our target sectors include finance, healthcare, and non-profit organisations.
