Cyber Hygiene for Financial Institutions

Data breaches continue to plague businesses across industries, and financial institutions are no exception. In the first half of 2019 alone, more than 4.1 billion records were exposed in over 3,800 publicly disclosed breaches. Most of these incidents could have been easily prevented with proper cyber hygiene practices. For financial institutions, in particular, maintaining strong cybersecurity measures is critical to protecting sensitive customer data and avoiding financial losses.

The Importance of Cyber Hygiene

Cyber hygiene refers to the everyday practices that organizations follow to maintain the health and security of their systems. Just as regular physical hygiene keeps individuals healthy, cyber hygiene keeps a business’s digital systems secure from malware, data breaches, and other cyber threats.

A lack of basic cybersecurity controls is often the root cause of most security incidents. The IT Process Institute (ITPI), an IP Services partner, conducted a study of 57 individual cybersecurity practices across organizations. The study identified 12 sets of practices that are commonly implemented together, with seven of them being statistically significant predictors of high performance. These practices include release scheduling, process culture, pre-release testing, and controlled production access.

Key Cyber Hygiene Practices for Financial Institutions

For financial institutions, the stakes are especially high. Not only do these organizations store vast amounts of sensitive customer data, but they also operate in a highly regulated environment where compliance with security standards is essential. Here are some key cyber hygiene practices every financial institution should implement:

1. Security Awareness Training: Employees are often the weakest link in an organization’s cybersecurity defenses. Phishing attacks, malware infections, and social engineering schemes typically target employees who are unaware of the risks. Financial institutions must provide regular training to ensure their employees understand the mechanisms of spam, phishing, and malware. Simulated phishing tests and interactive training modules can help employees recognize and avoid falling victim to such attacks.
2. Patch Management: One of the most effective ways to prevent cyberattacks is to keep systems up to date with the latest security patches. According to research, more than half of all cyberattack victims could have avoided their breach if they had applied the available security patch. An effective patch management strategy ensures that all software vulnerabilities are addressed in a timely manner, reducing the risk of exploitation.
3. Vulnerability Scanning and Remediation: Regular vulnerability scanning allows organizations to identify weaknesses in their systems before attackers do. Financial institutions should conduct both internal and external scans, combined with penetration testing, to actively exploit and remediate vulnerabilities. By taking a proactive approach to identifying and addressing security weaknesses, institutions can significantly reduce the risk of a successful attack.
4. Security Information Event Management (SIEM): SIEM tools collect, retain, and analyze log data to help businesses monitor security events in real-time. These tools are essential for identifying suspicious activity, correlating security events, and responding to potential threats. For financial institutions, SIEM solutions are also a requirement under certain regulatory standards.
5. Change Management: A well-defined change management process ensures that any changes made to systems, networks, or software are properly tested, reviewed, and approved. This prevents unauthorized or untested changes from introducing new security vulnerabilities. Effective change management reduces downtime and ensures system stability.

The Role of Managed Services

Implementing and maintaining these cybersecurity practices can be challenging, especially for small and mid-sized financial institutions that may lack the internal resources to manage them effectively. This is where managed services can play a critical role.

At IP Services, we offer managed services tailored to the specific needs of financial institutions. Our approach includes managing patching, monitoring for vulnerabilities, and providing real-time security event monitoring through our SIEM solutions. By partnering with IP Services, financial institutions can focus on their core business activities while ensuring that their cybersecurity posture remains strong.

Conclusion

Cyber hygiene is essential for maintaining the security and integrity of financial institutions. By implementing best practices such as security awareness training, effective patch management, and vulnerability scanning, organizations can significantly reduce their risk of a data breach. At IP Services, we provide comprehensive managed services to help financial institutions meet their cybersecurity needs and maintain compliance with regulatory requirements. With a proactive approach to cybersecurity, financial institutions can protect their data and maintain the trust of their customers.