BFSI (Banking, Financial Service and Insurance) organizations have remained a primary target of cybercriminals over the last several years. Given the amount of sensitive data that the BFSI sector has to deal with, they become an obvious goldmine for hackers and that is why they have to prioritize cybersecurity above all else.
As a matter of fact, more than 70% of fintech companies cited information security as their top concern in the Sixth Annual Bank Survey. The ongoing COVID-19 pandemic also added to the worries of the BFSI businesses as hacks like the Robinhood breach, Morgan Stanley breach and several others rocked the industry.
As a result, to combat the increasing cybersecurity issues, BFSI organisations must adopt a comprehensive security strategy. Being updated with the latest cybersecurity trends certainly helps a lot. In our latest ebook series, security experts from Appknox have highlighted some of the hottest cybersecurity trends that are going to play a crucial role for the BFSI sector in 2022.
In this blog, we will briefly cover some of the highlights from our ebook - “Top Banking, Financial Service and Insurance (BFSI) Cybersecurity Trends For 2022.”
Rising Risks in the BFSI Sector
The financial sector is one of the key industry verticals that are continuously under attack from cybercriminals. Financial organizations that store and process consumer data, particularly those that offer financial services to retail and commercial consumers are an obvious target. The stats from our latest BFSI ebook agree with the same.
The Modern Bank Heists report by VMware concludes that in the aftermath of the COVID-19 pandemic, we have witnessed a 238% increase in cyberattacks on financial sector businesses. Among these attacks is a slew of DDoS attacks among several others which are frequently accompanied by ransomware demands and extortion. As a result, it's unsurprising that 39% of financial sector executives believe that the overall network security threat for the BFSI sector businesses has become highly significant.
While the global financial services industry is well-versed in finding ways to improve efficiency and meet user demand, the rush to adopt the latest technology has also occasionally resulted in unwanted security vulnerabilities for them.
The increasing impact of complex technology being used, as well as integration with third-party systems, has resulted in a larger attack surface and increased the sophistication level of attacks. Currently, a strong cybersecurity posture involves more than just safeguarding sensitive data and systems from harmful external attacks. It also involves identity protection, greater data privacy, and effective vulnerability management.
7 BFSI Cybersecurity Trends for 2022
As the cybersecurity threat landscape widens for the BFSI businesses, staying up-to-date with the latest security trends becomes a must. Here are some of the key security trends that our experts have highlighted in our BFSI cybersecurity trends ebook. We highly believe these cybersecurity trends will dominate the road to progress and technological revolution in the financial sector in 2022:
1) Adoption of AI for Fraud Detection
As we set foot in 2022, we will witness more and more advanced AI (Artificial Intelligence) and ML (Machine Learning) technologies being developed and adopted by fintech leaders to predict and prevent financial fraud. As more and more revolutionary technologies enter and disrupt the financial domain, AI can help boost security by analyzing huge volumes of data faster and by detecting unauthorized usage.
2) Increased Reliability on Advanced Blockchain Systems
Blockchains quickly established themselves as highly decentralised and secure data flow technologies after their introduction to the finance world. In a link-node system, they offer additional security features such as storing critical data as cryptographic hashes. And because of their ability to enable safe and hassle-free transactions, we will see increased adoption of Blockchain in the BFSI domain in 2022.
3) Introduction of Secure Access Service Edge (SASE) Solutions
SASE is an acronym for Secure Access Service Edge network architecture. Similar to multi-cloud storage technology, the SASE network architecture combines several systems together and connects security solutions to obtain the best possible outcomes. Fintechs will most certainly use solutions like SASE in 2022 to protect their essential assets while maintaining their functionality.
4) New Regulatory Technologies (Regtech)
Governments all around the world are constantly looking for new ways to implement larger cybersecurity rules, and in this environment, the growing popularity of Regtech means additional fintech security sustainability. Regtech tools will be highly utilized in 2022 to manage and assess big data consumption while also ensuring that fintech adheres to regulatory regulations.
5) Digital-Only Banking
The trend of Digital only Banking has already been brewing for years and in 2022, things are expected to escalate quickly in terms of the digital transition. According to Global Market Insight in 2019, the fintech evolution of digital banking has reduced physical visits to brick and mortar bank offices by 36%, and this trend is projected to continue as the movement gains traction.
6) Increase in Zero Trust Adoption
Zero-trust is a strategy that involves trusting nothing, verifying everything related to people and devices, assuming the network is hostile and only granting entities the least privileged access — the rights they require to perform their role. In 2022, this approach is expected to become critical in preventing identity theft through a variety of channels, including compromised secrets, breached data perimeters, and lateral threats.
7) New Payment Innovations
New payment innovations like contactless banking are a part of the trend toward the new era of fintech businesses. In 2022, the financial services industry will likely continue to invest in modern data and analytics tools, artificial intelligence capabilities, and digital platforms as a direct response to consumers' rising reliance on new payment methods and banking solutions.
With the introduction of new payment trends such as mobile wallets, UPI, mobile payments, and contactless card payments, keeping transactions secure and verifying your clients' identities will become more vital than ever.
When it comes to being agile enough to adapt to the evolving threat landscape in the financial sector, you need to be ahead of the game. You must have the strategy, proper tools and an efficient workforce in place to safeguard your business as well as the information of your customers. Successful security does not involve chance; rather, it necessitates being prepared and being brave enough to make the necessary changes.
Our latest BFSI Cybersecurity Ebook paints a clear picture as to what the existing cybersecurity scenario looks like for the BFSI businesses and what we can learn from some of the most devastating breaches that shook the industry from its roots. Being aware of the latest security trends in the sector will surely give your business an edge over the threat actors and also place you ahead of your existing competition.