From names and addresses to credit card details, account numbers, and transaction histories, financial services institutions manage highly confidential customer information, making these organizations prime targets for cyberattacks. According to Statista, data breaches involving financial entities rose by more than 330% from 2019 to 2023.
Credit unions, commercial banks, insurance firms, and savings and loan associations alike need to reinforce cybersecurity measures to safeguard their company and customer assets from emerging threats.
Importance of Cybersecurity in Financial Services
Financial services cybersecurity protects customers’ financial data from theft, falsification, and unwanted access to networks and accounts. The benefits of cybersecurity for financial institutions include:
Preventing Financial Loss
Besides accessing customer accounts, criminals can use card details for unauthorized transactions or encrypt sensitive data in exchange for a ransom. Financial institutions also face legal costs, fines, and lost revenue from reputational damage.
Safeguarding Sensitive Data
Another role of cybersecurity in financial services is to ensure that only authorized people can access company application databases. Otherwise, cybercriminals can use stolen data to extort account holders, fraudulently obtain loans, and commit crimes using the victim’s identity.
Upholding Your Reputation
Consistent cybersecurity for financial institutions helps them maintain their position as industry leaders and makes customers more willing to engage with their brand. Besides attracting new customers, data protection capabilities also help create long-lasting customer relationships.
Regulatory Compliance
Adhering to financial services cybersecurity regulations puts companies in good legal standing to protect themselves from operational disruptions and non-compliance fines and penalties. To remain compliant, institutions typically must meet multiple requirements, including mandatory and advisory laws. The regulations can be federal, international, or regional and serve different operational purposes.
Discover how FireMon can help you ensure continuous compliance.
