Why Cybersecurity is Essential For Financial Sector?

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For more than a century, the banking industry has been the most frequently assaulted sector in terms of robbery crimes. Years before, money was looted by thieves, and in this modern world, it is being robbed by hackers. The lack of financial enterprise data security solutions is the most liable and responsible for such cybercrimes in this contemporary era.

However, with impeccable and flawless cybersecurity Bank’s data security solution turns the tides. Cybersecurity has now become a bedrock of any banking organization. The banking enterprise is defending its network, data, system, and users impactfully with the help of cybersecurity solutions.

Nevertheless, the jolts of cyberattacks have not yet tarnished. The numbers below are an eye opener for the financial sector and will promptly represent why cybersecurity is a sheer requirement for financial sectors.

  • According to embroker, by 2025, the anticipated global cost of cybercrime to businesses will increase from $3 trillion to $10.5 trillion yearly, a 15% increase from year to year.
  • According to research by RiskIQ, cybercrime costs enterprises $2.9 million every minute, and significant corporations lose $25 every minute due to data breaches.
  • According to IBM data, the average hack costs $3.86 million, and it takes 280 days to identify and manage it.

Importance and essentials of Cybersecurity in Financial Sectors

Why Cybersecurity is Essential For Financial Sector

The numbers and stats mentioned above prove that the banking sector is in real need of aid to defend the cyberattacks.

However, you will be stunned to know that 43% of cyber-attacks are done on small-sized businesses, and only 14% of them have the capabilities to defend them.

Hence the importance of cyber security is the only antidote to erupting the seething volcano of cybercrime.

  • In this age of AI and digital transformation, cybersecurity is the unleased remedy to protect customers’ assets when people are turning more towards cashless or digital payments.
  • The importance of cybersecurity solutions demonstrates its worth when your account suddenly gets blank. Hackers with different techniques hack bank accounts and cause the bank to suffer financial losses and loss of customer trust.
  • Cybersecurity shields the banking sector with huge FDIC penalties. If the case bank does not follow the compliances and, unfortunately, any data breaches, the bank has to face heavy penalties. Thus, weaker cybersecurity can impact bank’s reputation and increase cyber-attack risk.

Cyberattacks’ Effects and Severity

Key Market Trends To Watch Out For In the Global Cybersecurity Industry

Cyberattack effects are not limited to one or two losses; banks have to face a variety of aftereffects in that case. Whatever the kind of cyber-attack, every result comes at a cost, monetary or otherwise.

Below are five sectors where cyberattack may affect your business:

  • Financial loss
  • Legal liability
  • Loss of productivity
  • Damage your Reputation
  • Effect Business Continuation

The most threatening and problematic attacks are made using ransomware, which concerns the banking and financial sectors. Also, here you can check Why Hire A Cyber Security Services Company & How To Do It

Research by Cybersecurity Ventures predicts that every 40 seconds at the end of 2016, a company was the target of a ransomware attack, and by 2022, this will increase to every 11 seconds.

Necessity of Cybersecurity For Financial Sector

In the new world of work, it is essential to protect digital money more than physical money. Hackers constantly break all the barriers to enforce their impact as technology advances.

The necessity of cybersecurity is now primacy for financial sectors. The reasons to aid the finance sector with cybersecurity are not only monetary, but it also influences many other industries, which may have high consequences.

  • Such attacks adversely affect the economy of the country.
  • It also influences others to conceive such a crime.
  • It may hinder the trust of customers in the bank.
  • It may sink the small-scale banking sectors; under the waves, it craters the whole banking sector.

According to the report, cyberattacks impact 1% of the global economy annually, close to around $445 billion. The report also reveals these figures will surge high in upcoming years.

How Financial sector can Benefited with Cyber Security Solutions?

 

Cybersecurity Trends

Cyber security solutions for the banking sector are a leading star in reputed banking companies. But obviously, such stars undoubtedly possess some skills from which the financial industry may benefit.

To extract exclusive benefits, Data security provider for financial companies are the best option to get in touch with; it assists the financial sector in many different industries and provides delivery services that can guide and implement the securities in various departments of individual banks.

  • Secure Customer’s Information: Personal information is one of the most precious commodities in the digital age. Cyber Security Solutions secure customers’ data and protect against viruses and attacks.
  • Secure Productivity: Cyber-attacks slow down the system and eventually affect work productivity. Such impact may also cause adverse effects on customer experience, which may cost banks to lose customers; however, with big data analytic services, banks can secure their systems without disrupting productivity.
  • Secure your website: The anti-virus is a boon for the banking sector as it protects against cyberattacks. Attacks on bank websites are common nowadays. To get protection against such attacks, profound Banks data security solutions can safeguard your website and preserve from not going down.

To protect, secure, and safeguard their reputation, customer data and system financial sector is reaping sublime benefits of cybersecurity and devoting excess amounts to Data security providers for financial companies. 

The cybersecurity market is expected to expand by 12–15% annually starting in 2021. And it is expected to surpass $1trillion of total spending globally on cyber security good and services.

Conclusion

Banking is a well-known consumer-facing company in the world; from a small banking sector to medium or large size businesses, the banking sector wear lot of hats; visionary, economically, managing, and everything in between.

However, the financial sector knows its core business is its customers and competitors. They also learn to stay at the top of the industry; they must perform well today for a better tomorrow.

Human error is to blame for 95% of cybersecurity breaches while splitting it Hacking and malware account for 75% of breaches, unintentional exposure accounts for 18%, insider risks for 6%, and physical breaches for 2%.

Hence, find a solution that integrates seamlessly into your cybersecurity workflow and supports business objectives to safeguard your bank’s reputation and banking internal data security threats. Take the assistance of the best data security services Provider and embark high to gain productivity and growth.

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Author Bio: Michael Donald is a senior IT Consultant at leading Banking Software Solution Provider Company, Bitscape. I have unified experience in adding values to the existing technological architecture of various businesses. During my professional journey, I have tackled a wide range of challenges and have built the ability to work through challenging issues for any industry.

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