# Why cybersecurity needs to be top of the agenda for FS organisations Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-08-09 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: Financial Services Cybersecurity Risks and Solutions Meta Description: FS firms are 300 times more likely to be targeted by cyberattacks. Learn how to secure sensitive data and prevent financial loss. URL: https://financedigest.com/why-cybersecurity-needs-to-be-top-of-the-agenda-for-fs-organisationshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/attackf1g8u8pu-sbi-300189840-1736838034536-compressed.jpg) _By_ **_Max Locatelli,_** _Regional Director Western Europe at_ [_Infoblox_](https://www.infoblox.com/) Cybercrime has the potential to impact us all; no individual or organisation is immune. However, whilst every single business operating in the world today could face an attack at any given moment, some are at more risk than others. Thanks to the trove of sensitive data and the huge [financial sums they regularly handle, Financial Services](https://www.financedigest.com/top-6-trends-emerging-in-financial-services-in-2016.html "TOP 6 TRENDS EMERGING IN FINANCIAL SERVICES IN 2016") (FS) organisations have become an obvious target for those looking to make a profit. In fact, according to Boston Consulting Group’s ‘Global Wealth 2019: Reigniting Radical Growth’ report, FS firms are up to 300 times more likely than other companies to be targeted by a cyberattack. These statistics are not set to [change any time soon thanks to the recent boom](https://www.financedigest.com/from-boom-to-bottom-and-now-big-change-renault-and-nissan-reshape-alliance.html "From boom to bottom and now big change: Renault and Nissan reshape alliance") in digital transformation and cloud adoption initiatives. Whilst adopting these technologies and practices was necessary for survival during the pandemic, many FS organisations have inadvertently made themselves more vulnerable by expanding the attack surface. With hackers getting more sophisticated and a new wave of cyberattacks just [around the corner](https://www.financedigest.com/hotel-hotspots-for-2017-whats-around-the-corner-for-the-uks-hotel-sector.html "Hotel hotspots for 2017 – what’s around the corner for the UK’s hotel sector?"), FS organisations need to act now. Failure to adapt to the landscape and adopt a [proactive approach](https://www.financedigest.com/the-importance-of-a-proactive-and-collaborative-approach-to-reducing-contactless-fraud.html "THE IMPORTANCE OF A PROACTIVE AND COLLABORATIVE APPROACH TO REDUCING CONTACTLESS FRAUD") to cybersecurity could spell disaster long-term. **A year of change** Traditionally, FS firms face a range of [challenges when it comes to protecting their customer and employee](https://www.financedigest.com/how-to-deal-with-challenging-employees.html "How to Deal With Challenging Employees?") data from cybercriminals. Regional compliance regulations and laws as well as cybersecurity concerns relating specifically to the sector all make [network security](https://www.financedigest.com/new-demands-on-network-security.html "NEW DEMANDS ON NETWORK SECURITY") extremely complex. However, when the COVID-19 [crisis took hold](https://www.financedigest.com/5-top-tips-when-holding-a-crisis-press-conference.html "5 Top Tips When Holding a Crisis Press Conference") last year, these challenges increased ten-fold. As office closures took hold, FS employees [moved from corporate offices](https://www.financedigest.com/tips-for-moving-office-how-to-use-packing-boxes-efficiently.html "Tips for Moving Office: How to Use Packing Boxes Efficiently") to homes on the edge of the network, bringing greater risk. Not only were IT [teams responsible for making sure staff were set up with the right equipment](https://www.financedigest.com/how-finance-leaders-can-equip-their-team-to-tackle-change.html "How Finance Leaders Can Equip Their Team to Tackle Change") and systems, and that those systems were optimised for the cloud, but teams found themselves scrambling to secure corporate devices wherever they were located. As many FS organisations struggled to get to grips with this new landscape, cybercriminals were using it to their advantage, using the chaos as a way to launch multiple attacks. In fact, according to [recent research](https://www.baesystems.com/en-financialservices/insights/blog/the-covid-crime-index-2021), three quarters (74%) of FS organisations have seen an increase in malicious activity since the beginning of the crisis. This activity and the damages come in all shapes and sizes – as a recent [cybersecurity report](https://info.infoblox.com/resources-whitepapers-cyberrisk-alliance-insight-report-on-the-global-financial-services-sector) uncovered. It found that more than half of all firms (54%) reported that they were hit by data breaches during a 12-month period, while [nearly half](https://www.financedigest.com/another-lockdown-is-the-top-concern-of-nearly-half-of-uks-small-businesses.html "Another Lockdown is the Top Concern of nearly Half of UK’s Small Businesses") (49%) encountered cloud-based malware attacks. For FS organisations, a single [data breach](https://www.financedigest.com/keeping-data-in-the-vault-insider-breach-risk-in-financial-services.html "Keeping data in the vault: insider breach risk in financial services") can have far reaching consequences. According to the report, financial losses – with an average [cost of $4.2 million per data](https://www.financedigest.com/durham-county-council-reduces-data-log-analysis-costs-by-50-with-real-time-analysis-and-security-tool.html "Durham County Council reduces data log analysis costs by 50% with real-time analysis and security tool") breach – are the primary concern for 60% of those questioned. However, it’s not just the [initial cost](https://www.financedigest.com/green-initiatives-cut-self-storage-business-space-stations-energy-costs-by-75.html "Green initiatives cut self-storage business Space Station’s energy costs by 75%") that victims need to worry about. Almost half (45%) of respondents also highlighted the reputational damage caused by a breach. This can have a long-term impact, both on [retaining current customers](https://www.financedigest.com/retaining-insurance-customers-in-a-post-pandemic-environment.html "Retaining insurance customers in a post-pandemic environment") and the ability to win new ones. In today’s ultra-connected, competitive landscape, it ultimately could be the difference between being able to [bounce back](https://www.financedigest.com/biotech-stocks-pin-bounce-back-hopes-on-ma-boost.html "Biotech stocks pin bounce back hopes on M&A boost") from an attack, or failing. **Future proofing** [financial services](https://www.financedigest.com/matching-digital-adoption-with-cybersecurity-in-the-financial-services-industry.html "Matching digital adoption with cybersecurity in the financial services industry") With [recent research](https://www.finextra.com/newsarticle/38394/majority-of-finance-staff-in-favour-of-hybrid-work-policy-post-pandemic) discovering that one in four UK FS workers would like to work fully remote post-pandemic and the vast majority (69%) are in favour of a hybrid model – the digital landscape is only going to become more complex. Network architecture will no longer be centralised on a physical campus, with a core data center into which users connect, so [security practices need](https://www.financedigest.com/why-preparation-for-new-swift-cyber-security-standards-needs-to-start-now.html "‘Why preparation for new SWIFT cyber security standards needs to start now’") to change to reflect this. One tool that could help FS organisations to defend against the latest and most sophisticated threats is [DDI](https://www.infoblox.com/products/bloxone-ddi/). This bundle of Domain Name System (DNS), Dynamic Host Configuration Protocol (DHCP) and IP address management (IPAM) is [designed with the modern](https://www.financedigest.com/graphic-design-artwork-a-modern-approach.html "Graphic Design Artwork – A Modern Approach") borderless enterprise in mind. DDI simplifies the [management complexity and bottlenecks of backhauling traffic to the central office and provides much needed](https://www.financedigest.com/anyone-can-write-assignment-need-people-able-apply-new-skills-workplace-says-top-investment-management-company.html "“Anyone can write an assignment, but we need people to be able to apply their new skills to the workplace,” says top investment management company") visibility into network activities to detect anomalies before they move upstream. DDI augments visibility into network activities and increases control. It grants visibility into networking activities, no matter where devices might be connected from – including remote locations. And since 90% of malware touches DNS – the first D in DDI – when entering or leaving the network, DNS can be a critical detection tool that, when connected to the security stack, can [enable stronger threat](https://www.financedigest.com/forescout-and-fireeye-expand-partnership-enabling-faster-response-to-cybersecurity-threats.html "FORESCOUT AND FIREEYE EXPAND PARTNERSHIP, ENABLING FASTER RESPONSE TO CYBERSECURITY THREATS") remediation. Additionally, DDI includes a software-defined perimeter that supports network identity and context for policy rules and their enforcement in security orchestration, automation and response (SOAR); security information and event management (SIEM); [cloud access security](https://www.financedigest.com/cloud-security-and-the-department-of-go.html "Cloud security and the ‘department of go’") brokers (CASBs); zero trust; next-generation firewalls and more. Ultimately, DDI enables the [network team to quickly](https://www.financedigest.com/how-can-network-operators-monetise-television-quickly-and-effectively.html "How can network operators monetise television quickly and effectively?") detect and fix any vulnerabilities, no matter where they originate. FS firms must take this time to embrace a more strategic approach to security, rather than hanging onto a [model that isn’t compatible with the cloud-first networks that hybrid work](https://www.financedigest.com/how-collaboration-technologies-are-helping-organisations-to-embrace-a-hybrid-working-model.html "How collaboration technologies are helping organisations to embrace a hybrid working model") requires. It’s no longer enough to solely promote centralised, on-premises practices. Instead, cybersecurity needs to stretch across the entire infrastructure using [modern technologies](https://www.financedigest.com/how-is-modern-technology-shaping-our-in-store-experience.html "How Is Modern Technology Shaping Our In Store Experience?") – like cloud-first DDI – to protect users no matter where they are located. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---