Zero Trust Architecture in financial services: An imperative need
How does ZTA help financial institutions build a robust cyber defence strategy against security risks?
Zero Trust Architecture in financial services: An imperative need
How does ZTA help financial institutions build a robust cyber defence strategy against security risks?
The financial sector is one of the most crucial sectors that require cyber defence mechanisms.
Cybercriminals leverage the weaknesses in the security infrastructure of financial institutions to access highly targeted and lucrative data, prompting organisations in the financial sector to see the growing need to implement strict security controls against cyber risks.
For financial institutions, this means implementing several cyber defence practices, such as least privilege access, micro-segmentation, and detection of unusual behaviour.
The financial sector is one of the most crucial sectors that require cyber defence mechanisms.
Cybercriminals leverage the weaknesses in the security infrastructure of financial institutions to access highly targeted and lucrative data, prompting organisations in the financial sector to see the growing need to implement strict security controls against cyber risks.
For financial institutions, this means implementing several cyber defence practices, such as least privilege access, micro-segmentation, and detection of unusual behaviour.
Cyber threats in the finance sector are on the rise
The increase of malware threats and hybrid working environments, encouraged by COVID-19, has made a model like Zero Trust for the financial sector imperative.
- The first half of 2020 alone saw a 238% increase in cyberattacks targeting the financial sector.
- In 2021, the average cost of a data breach reached $5.72 million.
According to cyber defence experts, ransomware, SQL Injections, Local File Inclusion, Cross-Site Scripting, OGNL Java Injections, DDoS attacks, bank drops, and supply chain attacks are some of the most common cybersecurity threats that financial institutions need to prepare for.
That said, as cybersecurity regulations, such as the new General Data Protection Regulation (GDPR) and New York State’s DFS Cybersecurity Regulation, are enforced, the global financial industry requires vigilant cyber defence mechanisms to move beyond the legacy systems.
Cyber threats in the finance sector are on the rise
The increase of malware threats and hybrid working environments, encouraged by COVID-19, has made a model like Zero Trust for the financial sector imperative.
- The first half of 2020 alone saw a 238% increase in cyberattacks targeting the financial sector.
- In 2021, the average cost of a data breach reached $5.72 million.
According to cyber defence experts, ransomware, SQL Injections, Local File Inclusion, Cross-Site Scripting, OGNL Java Injections, DDoS attacks, bank drops, and supply chain attacks are some of the most common cybersecurity threats that financial institutions need to prepare for.
That said, as cybersecurity regulations, such as the new General Data Protection Regulation (GDPR) and New York State’s DFS Cybersecurity Regulation, are enforced, the global financial industry requires vigilant cyber defence mechanisms to move beyond the legacy systems.
What can financial services expect from a Zero Trust approach?
A Zero Trust approach assumes anyone or anything is untrustworthy. Zero Trust Architecture in financial services enables organisations to follow these security protocols:
Multi-factor authentication (MFA)
The user is granted access to a system or network only after successfully presenting two or more authentication factors to an authentication mechanism. This mechanism is often used in financial institutions to prevent incidents of identity theft.
Least privilege access
This is a security concept where a user is given only the minimum access or permissions to a network needed to perform their job functions. This technique effectively limits the impact of an attack in case of a breach.
Device access controls
A ZTA model monitors the number of devices accessing a network and ensures that every device is authorised and meets the required device health. Access permission doesn’t linger, which means attackers have a very limited chance of accessing or spreading in the network.
Security policy creation
Zero Trust Architecture in financial services allows organisations to create a universal cyber defence policy that is to be implemented end-to-end throughout the organisation. It also enables a more streamlined deployment and management of security policy and reduces the potential for security holes or gaps in some parts of the infrastructure.
Micro-segmentation
This enables organisations to break or segment their security perimeters and then define security controls for each segment. The purpose of micro-segmentation is to ensure that a person or program with access to one of those segments will not access any of the other segments without separate authorisation.
What can financial services expect from a Zero Trust approach?
A Zero Trust approach assumes anyone or anything is untrustworthy. Zero Trust Architecture in financial services enables organisations to follow these security protocols:
Multi-factor authentication (MFA)
The user is granted access to a system or network only after successfully presenting two or more authentication factors to an authentication mechanism. This mechanism is often used in financial institutions to prevent incidents of identity theft.
Least privilege access
This is a security concept where a user is given only the minimum access or permissions to a network needed to perform their job functions. This technique effectively limits the impact of an attack in case of a breach.
Device access controls
A ZTA model monitors the number of devices accessing a network and ensures that every device is authorised and meets the required device health. Access permission doesn’t linger, which means attackers have a very limited chance of accessing or spreading in the network.
Security policy creation
Zero Trust Architecture in financial services allows organisations to create a universal cyber defence policy that is to be implemented end-to-end throughout the organisation. It also enables a more streamlined deployment and management of security policy and reduces the potential for security holes or gaps in some parts of the infrastructure.
Micro-segmentation
This enables organisations to break or segment their security perimeters and then define security controls for each segment. The purpose of micro-segmentation is to ensure that a person or program with access to one of those segments will not access any of the other segments without separate authorisation.
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FAQs
As the financial sector continues to be one of the most targeted sectors in cybersecurity, the need for a strategy that can quickly adapt to the rising threat landscape is necessary.
With its “never trust, always verify” approach, the ZTA model can enhance the cyber defence of an organisation, ensuring no unauthorised parties have access to sensitive information—financial data, transactional data, or customer information, for example—and prevent data exfiltration and breaches.
- Improved monitoring and alerting
- Greater visibility into network activities
- Reduced risk of data breaches
- Protection from and detection and containment of attacks
- Secure cloud adoption
- Enhanced hybrid workplace security
VOROR helps organisations design cyber defence solutions and become vigilant against threats that leverage cyberspace to attack financial institutions. We can provide bespoke security models that can seamlessly integrate into your existing architecture without compromising the efficiency of your existing operations.
To understand more about how your organisation can benefit from VOROR, get in touch today!
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© All rights reserved | © Voror 2023
© All rights reserved | © Voror 2023