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Cybersecurity Strategies For Finance Companies In A Post-COVID-19 World

The COVID-19 pandemic accelerated trends that were already underway in the finance sector, such as the rapid shift to the cloud and acceptance of digital payments. While this brings numerous perks for customers, banks, and firms providing financial services, it is also giving rise to cybersecurity concerns. These entities have become easy targets of criminals who perceive this new development as their very own “Gold Rush,” and they are all set to make the most out of this unique transactional environment.

Experts at the top accounting and finance conferences have underlined the gaping lack of security controls and the poor understanding of finance professionals regarding the nature of risks posed by this hybrid environment - all of which are also adding another layer of vulnerability for financial institutions. To maintain the security of its data and financial assets, it is essential for organizations to take a deep, long look at the threat points and make significant changes from within. Here, we will look at the few measures you can take:

Making Structural Changes To Boost Cybersecurity

For effective results, IT security departments of financial institutions must draft their cybersecurity plans keeping in mind the most crucial threat points, which are transmission, encryption, and network security. In addition to this, they must also take into account whether their customers and vendor partners have also taken measures to keep themselves safe from cyber attacks.

Thirdly, the rise of remote working raises the level of risk to malicious agents, which is why financial institutions must invest in training and reskilling their employees to operate in such an environment. To combat this, we recommend frequent training sessions on common cybersecurity threats and warning signs.

But that’s not all. Financial institutions must also go back to the basics to ramp up their security in this rapidly changing landscape. Just take two-factor authentications, for instance. Cybersecurity leaders have demonstrated at recent accounting and finance conferences how criminals now have the tools to break into them. Everything that has been seen as 100% secure, from RSA tokens to biometrics, will have to be revisited to facilitate a safe, frictionless customer experience. In this regard, we have a few suggestions, such as voice-based authentication strategies and credit cards that change their PINs after every digital transaction, without making it a hassle for the customer. Financial institutions must also work with vendor partners and ensure that they only associate with firms adhering to the highest security standards in the digital world.

In addition to this, financial institutions can also bank upon AI-based scam prevention technologies to tackle cyber fraud. These help detect suspicious transactions and come up with risk predictions within seconds. The potential of distributed ledger technologies when it comes to keeping a record of transactions in a secure manner also shouldn’t be ignored. Given that single failure points aren’t created when such technologies are used, security isn’t compromised.

Conclusion

Drafting an effective strategy to ensure the security of your assets should never be a one-time thing. As the financial landscape evolves, financial institutions must adapt and change whenever possible For those who wish to keep themselves updated, upcoming finance conferences, such as the Money 2.0 Conference, will offer a 360-degree view of this crucial subject.

10/01/2021 - 12:34
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vinayak
Author Name
Vinayak Joshi
Author Bio

Vinayak Joshi is an integral part of the Money 2.0 Conference team who is curious about the world of finance. With a keen interest in cybersecurity, internet financial fraud detection, scam investigation, and digital forensics, his passion lies in helping people traverse the internet securely. A self-declared anti-spam and phishing expert, when Vinayak is not working, he loves to read crime fiction, write, and play basketball.