Importance of identity-based connectivity in the financial sector

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By Almog Apirion, CEO and co-founder of Cyolo

The financial sector is experiencing an increase in cyber threats and cyber security protocols. Banks around the world need to understand how to keep their organizations network secure. Ultimately, financial institutions will need to turn to more secure network solutions to keep cyberattacks at bay and protect sensitive data, assets and information.

As cyber threats increase and cybersecurity protocols evolve within the financial industry, it is crucial that security professionals prioritize the protection of their organization’s network and applications. According to IBM and the Ponemon Institute, the average cost of a data breach in the financial industry in 2021 was $5.72 million, and costs are expected to rise this year. As banks move away from legacy systems towards digital transformation, now is the time for them to adopt more advanced security solutions to combat the influx of cyber threats and ensure their assets are protected.

Towards identity-based access

Identifying the risks posed by working with third-party vendors is a crucial first step that businesses in the financial industry can take to protect themselves from cyberattacks. For example, if a vendor with access to a bank’s internal network is hacked by a cybercriminal, it is unclear which part of the bank’s network the attacker can access through the compromised vendor. Worse, many attackers who infiltrate a third-party vendor also leave behind backdoors that allow them to return later without being challenged by cybersecurity protections.

But despite the serious security risks, third-party vendors cannot simply be blocked from company systems. Third parties are an essential component of day-to-day operations within financial services, and banks cannot operate without them. The best step financial companies can take is to adopt a security framework based on identity-based access, a model often referred to as zero trust. This security approach allows banks to verify access and track movement within their networks and stay secure even if their third-party providers are compromised.

The zero-trust framework ensures that users are granted only the bare minimum of access to information and resources needed to fulfill their roles, helping to prevent information from falling into the wrong hands. Strong authorization methods, such as multi-factor authentication (MFA), are an essential part of identity-based access and enable banks to limit third-party accessibility without compromising providers’ ability to deliver their valuable services.

How to Strengthen Current Security Measures with Identity-Based Access

In addition to more vigorously controlling access, some zero-trust access solutions allow banks to mitigate third-party risk by actively monitoring and logging a provider’s actions on authorized applications. With all activity recorded and available for real-time audit, security professionals and business owners are able to monitor vendor access requests and maintain full visibility into what is happening at the facility. within their networks.

As cybercriminals become more advanced and employ tactics that are harder to defend against, financial institutions need to adopt modern solutions that both reduce the risk of breaches and limit the damage from incidents that do occur. . Cybersecurity has been a growing priority within the financial industry for many years, but today’s digital landscape makes it more critical than ever that security professionals take steps to protect organizations’ assets. By embedding the zero-trust framework into their very infrastructure, financial institutions can more effectively combat attacks. The Zero Trust security model will reduce the risk of infiltration from external threat actors while allowing collaboration with third parties to thrive and maintaining a positive user experience for customers.

About the Author:

Almog Apirion is CEO and co-founder of Cyolo and an entrepreneur with expertise in leading teams, building processes and developing technology from vision to execution. He is an experienced technology executive, CISO, and a former founder and commander of the Navy Cyber ​​​​Unit with a long history of leadership in the field of cybersecurity and information technologies. His extensive experience includes building and securing critical infrastructure in large organizations and leading teams to success.

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