Cybersecurity Best Practices for Protecting Financial Data

Recently, an increasing number of financial institutions have been gradually transitioning to the online sphere. Such changes pose risks to their security. While customer data protection remains relevant for different business sectors, financial and banking systems must be particularly vigilant about security. After all, these systems contain a vast amount of important confidential data. Therefore, in the process of developing exceptional software solutions, the team at FNT Management considers all necessary nuances and cybersecurity features to protect financial data.

The implementation of effective measures has a positive impact not only on data protection but also helps prevent financial losses and ensures customer trust. Otherwise, internet fraudsters can gain access to financial accounts, which gives them the ability to conduct various credit card operations and steal company funds.

Main Threats to the Financial Sector

Quality financial data protection is the foundation of every modern business that regularly faces various cybersecurity risks. Despite their wide variety, several predominant and more serious threats should be highlighted:

Malware

Annual attacks using malware capabilities are becoming increasingly sophisticated, causing numerous problems for companies and firms specializing in payment processing.

Such schemes work according to the following principles:

• Cybercriminals infect computer devices with dangerous software (often through phishing emails), using encryption methods to restrict access to specific information.
• After this, criminals demand a specific amount of money from banking and other financial institutions in exchange for restoring lost access to data.

Today, cybercriminals regularly target companies that provide clients with secure, effective transaction services between customers and banks.

Phishing

This is the most common method allowing the use of various malicious programs. The main task of cybercriminals is to “force” users to install such programs under various pretexts.

Many financial company clients receive phishing emails that resemble official bank mailings. This is an excellent way to gain free access to confidential information, stealing funds from accounts. Additionally, such attacks target company employees to gain access to accounts and obtain internal information (such as client data and more).

Unencrypted Data

Banking systems contain many types of data, but some remain unencrypted. As a result, they become “easy prey” for all kinds of hackers. The obtained information can be used against company owners and their clients. For this reason, it’s important to reduce or eliminate the amount of unencrypted data.

Internet of Things (IoT)

The emergence of new 5G networks leads to new dangerous cyber threats. Since this network is relatively new, its architecture is not yet well protected and has many loopholes for internet fraudsters.

Therefore, it’s significant to be extremely careful when using 5G, as careless steps can cause cyberattacks of a new level. All devices communicating with each other through 5G will be maximally vulnerable to various external threats.

Cyberattacks and Cloud Technologies

The popularity of cloud attacks is increasing because more financial services prefer to send information to the cloud to save space. As a result, cybercriminals conduct mass attacks on cloud storage to obtain necessary data packages.

To ensure data protection in financial services industry, organizations must take care of securing their entire cloud infrastructure.

AI Technologies (Artificial Intelligence)

Today, AI capabilities are actively used in the cybersecurity segment. For example, in some financial services, developers initially implement AI principles that reduce money laundering risks. Many IT specialists use AI to create modern automated security systems designed to help financial organizations improve existing security protocols.

However, some AI-based tools are also successfully used by cybercriminals who create intelligent malware and develop methods for delivering malicious code. This allows them to successfully bypass even innovative company security systems.

Spoofing

This method has much in common with phishing but is considered more complex. Cybercriminals can use a fake domain that closely resembles the official one. It relies on the inattentiveness of financial company clients who voluntarily transmit their data to criminals through this domain.

Another common variant of spoofing occurs when fraudsters send SMS or call clients on behalf of a bank or other company, using fake phone numbers.

Popular and Effective Protection Methods

Effective data protection financial services requires implementing new strategic solutions that must be regularly improved based on the emergence of new threats. Thus, the financial sector’s task is to find quality protection for each new threat.

Let’s consider the most popular cybersecurity options for protecting financial data:

Reliable and Unique Passwords

A reliable password consists of at least 16 characters. It must include numbers, letters (both uppercase and lowercase), and special symbols. It’s necessary to avoid using sequential letters and numbers, and personal information (such as birthdates).

Different passwords should be created for each financial account. Otherwise, if one account is compromised, the criminal gains access to all others.

Multi-Factor Authentication

This is one of the most popular security measures, often used as an additional form of authentication to gain free access to financial data. Thus, access is granted to users who correctly pass the second form of authentication, such as a special code.

It’s also useful to establish such authentication when logging in from a new device or making various changes to the account.

Regular Software Updates

Experienced cybercriminals know they can take advantage of obvious vulnerabilities in software and hardware. For this, they are constantly actively searching for effective ways to quickly penetrate protected systems. Therefore, software should be updated promptly to increase its security level.

Avoiding Suspicious Links

This is how phishing attacks work when criminals send users suspicious links or attachments. After clicking on the link, they can remotely install malware on any device to further steal confidential information.

Avoiding Public Wi-Fi Networks

The risk is associated with public Wi-Fi being unprotected and unencrypted, thus remaining vulnerable to internet fraudsters who can “intercept” other users’ data. In some cases, criminals use fabricated Wi-Fi networks: users connect to them and thereby reveal personal data.

If there is an urgent need to access financial information using public Wi-Fi, it’s recommended to additionally enable a VPN.

Reducing Digital Footprint

Digital footprint refers to all digital data that shows user actions on the Internet. This can include browsing history, browser cookies, online purchase history using bank cards, and more.

To prevent cyberattacks, it’s necessary to close all accounts and delete those that have long been inactive.

Activating Financial Transaction Alerts

To control all financial operations on the Internet, it’s recommended to regularly review reports and activate alerts for any operations.

Thus, you can always stay informed about the following useful information:

• Balance on all financial accounts – low/high
• Funds credited to any card
• Password changes, modifications to personal information
• Failed login attempts
• New external accounts that will be linked

As a result, data protection for financial services will help avoid various cybersecurity problems. Today, the banking sector is considered one of those most frequently subjected to various cyber threats. Therefore, it’s important to apply modern and effective protection methods, as well as ways to minimize the consequences of such attacks.

Joshua White is a passionate and experienced website article writer with a keen eye for detail and a knack for crafting engaging content. With a background in journalism and digital marketing, Joshua brings a unique perspective to his writing, ensuring that each piece resonates with readers. His dedication to delivering high-quality, informative, and captivating articles has earned him a reputation for excellence in the industry. When he’s not writing, Joshua enjoys exploring new topics and staying up-to-date with the latest trends in content creation.

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