In recent years, we have watched cyber threats grow more sophisticated. Cybercriminals are not only continuing their activities, they are intensifying them, hitting governments and businesses alike and profiting from these attacks. Cybersecurity in Financial Services is critical in this context. According to the study “The perception of cyber risk in Latin America in the time of COVID-19”, conducted by Marsh at Microsoft's request, only 16% of the companies surveyed increased their information security and cybersecurity budget during the pandemic.
Of all industries, financial services (FSI) faces the greatest security challenges, because financial crime is becoming more frequent, more sophisticated and more lucrative. FSI remains one of the top three targets for ransomware attacks, according to the Microsoft Digital Defense Report.
To meet these challenges, FSI organizations need to take several steps to protect themselves from attack. Turning on multifactor authentication, applying least-privilege access, keeping systems updated and using antimalware are cornerstones of cybersecurity. These precautions are basic and may seem obvious, but the rise in successful cyberattacks suggests they are often overlooked. Fewer than 20% of our customers have enabled multifactor authentication, which is free and can be turned on by default.
Taking care of your data
We know that data is the new gold, and as it spreads across more tools, platforms, devices and clouds, security and compliance risks grow as well. With the arrival of new payment methods such as Pix in Brazil, Transferencias 3.0 in Argentina and CoDi in Mexico, FSI organizations have an enormous volume of data they can put to work. But it is essential to understand that data and protect it throughout its entire lifecycle.
Artificial intelligence (AI) and machine learning are becoming more advanced and can deliver remarkable insights from an organization's data. Banks and financial institutions have access to vast amounts of customer data, and with technologies such as the Microsoft Cloud for Financial Services, these institutions can put that data to work quickly and ethically.
Data governance is extremely important in FSI because data security and privacy have to be protected. A Morgan Stanley report found that 17% of chief security officers considered data governance one of their top three security priorities for 2021, a five-point increase over the previous year. So sophisticated attacks and the expansion of remote work will remain a priority in 2024.
Zero Trust as a strategy
Protecting digital identity is extremely important, and a Zero Trust strategy is key to protecting devices, users and data wherever they are. Zero Trust means adopting a proactive mindset that assumes any activity, even from known users, could be a hacking attempt. Given today's risks, both inside and outside organizations, Zero Trust is not just an option, it is a business necessity.
Factors such as when and for how long an organization stores its data have implications that go beyond regulatory compliance and security. According to the Duff & Phelps Global Regulatory Outlook, nearly a third (32%) of decision-makers at financial institutions interviewed in 2021 predicted that the total cost of compliance would account for more than 5% of their revenue. To mitigate that risk, a Zero Trust philosophy has to sit at the heart of every FSI operation.
The Zero Trust principles — verify explicitly, grant least-privilege access and assume breach — are the foundation of data security and privacy. They also help organizations develop something critical to success: resilience.
AI and automation: your security allies
A comprehensive strategy, combined with artificial intelligence (AI) and automation capabilities, allows financial organizations to address security from every angle. Risk can take many forms, and a siloed strategy is a vulnerability that cybercriminals know how to exploit. What is more, a strategy that reaches across a broad ecosystem of clouds, platforms and devices gives customers the flexibility they expect.
The best financial systems today protect data from the device to the cloud, and they also address security, compliance, identity management and privacy. That is exactly what Microsoft does with DiBanka in Colombia. This innovative ecosystem uses facial recognition and the Azure cloud to verify proof of life for its members, enabling secure remote procedures.
AI capabilities and automation can detect and track both external and internal threats. Gatekeeper, from Nuance, addresses privacy and security. This cloud solution uses advanced AI for seamless authentication decisions. It analyzes how a person sounds, speaks, types and behaves, reviewing device, network, location and other factors in search of fraud.
Security, compliance, innovation, privacy, choice and trust are key to improving collaboration, productivity and experience.
A commitment to cybersecurity
To grow and succeed, financial institutions must accelerate their digital transformation and understand the critical role cybersecurity plays in that process. Cybersecurity in Financial Services is essential for adopting new technologies that manage security and compliance, leaving organizations better prepared to face risk. Latin America is at a pivotal moment in its development, and the efficient adoption of technology tools will accelerate growth, benefiting every industry and community with cybersecurity as the foundation.
Cybersecurity in financial services is essential to protecting sensitive customer information and maintaining trust in the financial system. Implementing robust cybersecurity measures not only prevents fraud and attacks, it also ensures the integrity and availability of financial services in an increasingly complex digital environment.
