20 Oct 2021
Protecting Financial and Banking Institutions: 5 Emerging Security Trends
As prime targets for criminals, banks and financial institutions have consistently faced significant security challenges. The market is constantly evolving to meet the growing demands of customers for convenience and enhanced service while balancing the considerations necessary to protect these same people from outside risks — both physical and cyber.
As banks need to increase revenues, improve operational efficiency and mitigate risk, defending against security threats is paramount to the market’s success. The rise of fraud in many financial institutions requires security leaders to incorporate robust strategies for mitigating its emergence. Fraud against bank deposit accounts costs the industry millions of dollars each year, and those numbers are only growing in light of COVID-19.
5 Emerging Trends in Financial and Banking Security
With the rise in cyber attacks at the forefront of the news, it’s becoming increasingly clear that risk management and security must be elevated throughout the financial services and banking markets. Physical and IT security leaders are shifting toward a more proactive approach to security than in years past to address and mitigate the latest emerging trends.
Data protection in the modern era is also a challenge for today’s financial institutions, as guidelines like the General Data Protection Regulation (GDPR) signify a shift toward increased privacy. Collaboration between security and IT departments, and the incorporation of cybersecurity into the development of access control, intrusion, and video management solutions brings both physical and cybersecurity to the forefront of risk management strategies. Building a solid foundation using these as a guide can modernize and streamline the protection of this market.
Data breaches not only cost organizations millions but also causes a significant lack of trust from consumers looking to protect their critical information. In 2017, a ring of hackers called the Carbanak gang (discovered by the Kaspersky Lab) stole more than $1 billion from financial institutions around the globe.
As a result, more financial organizations are focusing their efforts on physical and cyber security. As hackers become advanced, so too should the security measures in place to thwart risks. This approach should include increased spending on products that engage in constant vulnerability testing, bringing all stakeholders to the table to collaborate on solutions, and introducing innovative technology that helps mitigate fraud.
Regulations significantly impact how businesses manage data and security, r, and data can be both an asset and a potential liability. For example, GDPR provides a new set of data privacy rules that are far more extensive than ever seen before. It’s a complicated implementation that security leaders must look at carefully to ensure business continuity and compliance.
Whether located in the European Union (EU) or simply processing the data of subjects residing in the EU, financial institutions find themselves at the center of ensuring compliance. Banks must work diligently to comply to avoid penalties that can reach up to 4 percent of the company’s entire global revenue. Additionally, users and installers should work with experienced vendors that understand the implications of GDPR and its potential impact on security systems that store and access sensitive data.
Forward-thinking financial organizations are undergoing a seismic shift away from legacy systems toward new and emerging technologies, such as cloud-based solutions. The cloud can deliver more agility and scalability for growing organizations, which can be ideal in the banking industry as satellite ATMs and new branches are added to a security plan. And more businesses realize that leveraging the cloud is the most efficient way to solve emerging challenges.
Today’s cloud-based technology can empower financial organizations to take a more proactive approach to security management by giving them access to security and business data 24/7 from anywhere. The cloud also supports the growing remote workforce and a new set of customer engagement tools (we’re looking at you, online banking.) Cloud-based solutions can deliver a range of advantages, including greater security, more resilience, ease of mobile user support, flexibility, reduced costs, and a more significant user experience.
Remote Monitoring Capabilities
Modern technology has resulted in a society that is always connected. It is now possible to remotely monitor many locations from hundreds of miles away. Cloud-based solutions provide a way to streamline security system management and maintenance from anywhere, managing multiple locations seamlessly from a unified interface.
Remote monitoring allows for unparalleled flexibility, giving stakeholders the information they need to act quickly and efficiently in the event of a breach or emergency. Operators can eliminate once laborious tasks, such as reporting, that are now streamlined through the quick click of a button on mobile or desktop devices. Essentially, remote monitoring provides ease of use and convenience, critical for today’s financial institutions and the security leaders that help protect them.
As criminals become more sophisticated, financial institutions have to identify the best way to use time and money to mitigate the risk of fraudulent activity in their facilities. The first step is to integrate video surveillance and data management solutions fully with access control and intrusion, creating a comprehensive approach to addressing emerging threats.
A robust security strategy is the highest priority to best combat the current threats facing the financial and banking industry and is fully embedded within a bank’s risk management strategy. This method enables banks to manage operational risk and compliance demands and provides a modern, multilayer approach to security. It incorporates IT, video, intrusion, identity, and access management systems in a comprehensive solution that protects people, assets, and the brand.