Why do Banking and Financial Services Need Security and Penetration Testing Today?
Because of the importance of the sensitive data they handle, the banking and financial industry is one of the most actively targeted industries for cyber-attacks. Cybercriminals are always seeking system flaws to exploit and steal sensitive information such as personal and financial information. According to cyber security financial services statistics, the average cost of a data breach in the financial industry globally in 2023 was 5.9 million US dollars, down from 5.97 million US dollars in 2022. Furthermore, the global average cost of a data breach across all industries evaluated was USD 4.45 million. To prevent such assaults, organizations must undertake frequent penetration testing for financial industry on their IT infrastructure and data. In this blog, we’ll explore the benefits of pen testing in financial organizations. We’ll also shed light on the challenges faced in testing and the threats discovered in the financial industry. Keep reading to learn more. Talk to our Cybersecurity Expert to discuss your specific needs and how we can help your business. Schedule a Call What are the Threats in Financial Services? The financial services industry (mostly banks) is facing a slew of security concerns. If hackers gain access to client data and key financial information, all hell will break free! For instance, if the institution does not have in-house security testing skills, partnering with an established security testing provider is helpful. The following are the main security concerns confronting the financial services sector: DDoS attacks (Distributed Denial-of-Service) DDoS assaults degrade website performance, rendering it largely (or totally) inaccessible to end users. DDoS protection technologies might be useful in such situations since they safeguard the site from such harmful attacks. Malware and Ransomware Many of these malware and ransomware flaws involve internal personnel who connected to compromised workstations or mistakenly submitted user credentials in phishing campaigns. According to Forbes, ransomware costs over $75 billion in harm to various enterprises each year. Phishing Phishing assaults are growing more complex and difficult to detect. In addition, to make their messages look more authentic, attackers frequently utilize bogus email accounts, mimic real website domains, and employ social engineering methods. Web Application Exploits HTTP-based web apps all utilize port 80, whereas HTTPS-based applications use port 443. Banking customers should first verify that the website uses the HTTPS protocol; otherwise, their data is not safe. Cloud Service While BFSI firms increasingly choose cloud-based services over on-premises storage, their service providers are becoming frequent targets for data breaches. The issue is that cloud solutions with insufficient authentication or encryption security expose BFSI data to hostile attackers. Benefits of Penetration Testing for Financial and Banking Services The following are some of the primary advantages that penetration testing provides to the banking and financial services sectors: Showcase Genuine Risks This provides firms with a view into the types of actions that real-world attackers may take. Due to the difficulties in exploiting a potentially high-risk vulnerability, testers may advise firms that it does not constitute a large real danger. Such detailed research necessitates the knowledge of a professional, prompting many firms to outsource their penetration testing operations. Examine Cyber-Defense Capabilities and Responsiveness In the event of a cyber-attack, your defense measures should be able to identify and respond to such situations quickly. When an intrusion is detected, a quick investigation should be launched to identify and block the invaders, whether they are genuine hackers or experts evaluating the efficiency of your security plan. Comply with Requirements and Certifications Penetration testing levels prescribe your industry and regulatory compliance needs. Consider the ISO 27001, PCI DSS rules standard, which mandates all managers and system owners to undertake regular pen testing and security inspections with qualified testers. This is due to the fact that pen testing focuses on real-world implications. Customer Data Protection Banking and financial services firms are responsible for safeguarding their clients’ financial information. Penetration testing identifies weaknesses that might lead to data breaches and protects the security of consumer data. Keeping a Good Reputation Banking and financial services firms rely on client trust to sustain their reputation. A successful cyber assault can harm this reputation and cost the company money. Regular penetration testing aids in the identification of vulnerabilities and the prevention of successful attacks, hence protecting the organization’s reputation and consumer confidence. Untrustworthy Third-Party Services When outsourcing technology and business process services, the security procedures of third-party service businesses that rely on systems become the principal source of vulnerability. Financial institutions also utilize a large number of third-party service providers that operate on the platforms and pose a huge risk to all fintech firms. Insights into Security Penetration testing entails “ethical hackers” attempting to penetrate your network’s cybersecurity and then offering a report and suggestions. The test results advise your security team on how hackers may attempt to circumvent safeguards and where your most major weaknesses are. This allows you to better prepare for current dangers and makes it easier for a program to react to IT’s ever-changing threat landscape. Challenges in Banking App Penetration Testing It would be a huge undertaking to test an application that has been operating for more than 20 years. What are some of the difficulties that may arise when testing such applications? We have the following key issues while testing such applications: Lack of Transparency Banks are often seen as companies governed by severe and stringent regulations. They are well aware that a flaw in their system might be disastrous. Furthermore, banks are frequently unwilling to give any information on how their systems work behind the scenes, making testing banking applications difficult. Data Quantity The amount of data accessible on a daily basis is so vast that testing all of it is difficult. We must test the application for numerous situations on a certain day. A day has several data points that must be retrieved and evaluated for the application. System Migration The IT sector is always evolving with new frameworks and technologies. Migrating from one system to another is a significant difficulty for the financial sector
