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10 Cybersecurity Tips to Keep Your Bank Ahead of Hackers

Published by Fintech Americas on Oct 10, 2023

Stay ahead of hackers and strengthen your bank’s cybersecurity strategy with these essential tips.

Globally, a cyberattack occurs every 39 seconds, and an estimated 30,000 websites are hacked every day. In this fast-moving environment, banks are engaged in a constant battle against a silent and ever-present enemy: hackers. In an era where information is more valuable than ever and cyber threats evolve at an astonishing pace, financial institutions must stay one step ahead of those seeking to exploit vulnerabilities and compromise the security of their customers and operations.

The importance of cybersecurity in the banking industry cannot be overstated. A single security failure can have catastrophic consequences — not only for the financial institution itself, but also for customer trust in the brand and, ultimately, confidence in the financial system as a whole.

To help you and your team stay current and strengthen your security strategies and initiatives, today we are sharing 10 cybersecurity hacks specifically designed for banks determined to lead the fight against hackers. These recommendations go beyond traditional security measures and provide a competitive advantage in the ongoing battle to protect your assets and customer information in an era where technologies such as Artificial Intelligence have changed everything overnight.

Prepare to enter the exciting world of banking cybersecurity, where each “hack” will bring you one step closer to complete protection against cyber threats. As you will see, these initiatives had a decisive impact on improving the cybersecurity posture of Banco Galicia (Argentina) and Banco Davivienda (Colombia), potentially saving millions of dollars and blocking more than 400,000 identity theft attempts.

The battle is underway, and it is time for banks to position themselves at the forefront. Let’s begin!

Better Protect Your Bank with These 10 Cybersecurity Hacks Every Leader Should Know

  1. Update and Improve Software

Responsible: Chief Information Technology Officer (IT)

It is essential to apply all software updates as soon as they become available. Ideally, this process should be automated to improve speed and efficiency. Hackers can create exploits almost immediately after a patch is released. Many vendors and technology partners offer update services that support automation; the key is ensuring updates are delivered through secure channels and thoroughly tested before deployment in production environments.

  1. Limit and Control Account Access

Responsible: Human Resources (policy creation), IT Director (implementation)

Cybercriminals collect account credentials, so organizations should begin developing a framework focused on Zero Trust security. Under this model, account privileges are assigned restrictively and only when users truly need them. It is recommended to maintain documented procedures for securely resetting credentials or to use privileged access management tools to automate credential management. Additionally, onboarding and offboarding procedures should be updated to align with the Zero Trust approach.

  1. Formalize a Disaster Recovery Plan

Responsible: Business Operations, CFO/Treasury, and IT Management

Developing a disaster recovery (DR) plan is critical for effectively mitigating cyberattacks. The process should begin with business continuity as its foundation and address data protection, data restoration, backups, system recovery, configurations, and logging. Remember that a DR plan is not a static document; it must be continuously reviewed and updated.

  1. Actively Manage Systems and Configurations

Responsible: IT Administration

Another cybersecurity best practice for banks is maintaining an inventory of network devices and software. Organizations should remove unnecessary or unexpected hardware and software from the network. This cyber hygiene helps mitigate cyber risks by reducing the attack surface and establishing stronger control over the operating environment.

  1. Hunt for Network Intrusions

Responsible: Security Operations and/or Third-Party Penetration Testers

To strengthen your bank’s cybersecurity strategy, organizations should operate under the assumption that a breach has already occurred and proactively take measures to detect, contain, and eliminate malicious activity. Automated tools such as endpoint detection and response (EDR) solutions should be combined with threat-hunting operations and penetration testing. These steps help evolve cybersecurity strategies beyond basic detection methods toward real-time threat detection and remediation.

  1. Leverage Hardware Security Features

Responsible: Systems Administration

The security features built into modern hardware can significantly increase system integrity and positively impact entire networks. Therefore, another cybersecurity recommendation is to schedule the replacement of older hardware or, at minimum, use updated operating systems on legacy equipment. This can help better protect systems, critical data, and user credentials from cyberattacks.

  1. Segment Networks Using Application-Level Defenses

Responsible: Network Administration

Cybercriminals can hide malicious activity and compromise data through common protocols that transfer information between networks. Internal application defenses, such as firewalls, can restrict compromised applications. A strong security practice is to begin segmenting critical networks and services, then implement network defenses capable of blocking inappropriate traffic and restricting access to sensitive content in real time when necessary.

  1. Use Multi-Factor Authentication

Responsible: IT Manager/Administration

Multi-factor authentication has become almost mandatory for mitigating cyberattacks. It is recommended for accounts with elevated privileges, remote access, and/or high-value assets. In addition, physical token-based authentication systems should complement knowledge-based factors such as passwords and PINs.

This security measure is critical for blocking fraudulent access and should be implemented as an integral part of a broader cybersecurity strategy. Through this approach, Banco Davivienda (Colombia) successfully blocked more than 2.5 million fraudulent access attempts per semester and prevented more than 400,000 identity theft attempts.

  1. Implement Agile Methodologies

Responsible: Cybersecurity Manager

In banking cybersecurity, threats and attacks constantly evolve. In this environment, agile methodologies are an excellent approach because they allow teams to adapt quickly to new threats and shift focus when necessary to address emerging challenges and effectively mitigate risks. Additionally, as demonstrated by Banco Galicia (Argentina) in an award-winning project, agile methodologies enabled the organization to close thousands of vulnerabilities and save millions of dollars.

  1. Monitor the Security Posture of Third Parties

Responsible: Security Operations

Vendors and customers that do business with banks introduce unique security risks. External partners often have access to sensitive organizational data or support essential business processes. For this reason, it is critical to continuously monitor third-party risks and carefully evaluate technology partners selected to strengthen your cybersecurity strategy, ensuring they are trustworthy and world-class providers, such as those continuously introduced to financial institutions by Fintech Americas.

New Cyber Threats Facing Banking in Latin America — and How to Mitigate Them

A recent survey conducted by Censuswide revealed that 65% of board members at world-class companies fear their organization could be the next victim of a cyberattack. New hacker weapons such as Artificial Intelligence and deepfakes are accelerating this sense of constant danger and placing even more pressure on security teams.

What is the best strategy for protecting your bank in Latin America in this new environment, and why is agility critically important in cybersecurity? Discover the answer in the next episode of FATV Inside Access: “The Future of Cybersecurity: Artificial Intelligence, IoT, and Deepfakes.”

On Tuesday, October 17 at 12:00 PM EST, join leading executives from Banco Solidario (Ecuador), Banistmo (Panama), and Grupo Pichincha (LatAm, Spain, and the US) to explore:

  • New threats facing the financial industry: deepfakes, social engineering attacks, AI, and the Internet of Things (IoT)
  • The real importance of agile security strategies for banks in Latin America
  • How to proactively manage risks by implementing eGRC (Governance, Risk & Compliance) practices

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