The financial industry frequently finds itself in the crosshairs of cybercriminals, with expensive results. Research by IBM Security and the Ponemon institute found that the financial industry has the second-highest data breach costs, at more than $5 million per data breach.
But in addition to the hefty price tag a cyberattack carries, there are other reasons why cybersecurity for finance is a top priority. Do you need to make the business case for hiring a cybersecurity expert? Here are the top reasons why cybersecurity is critical in finance.
1. Safeguarding Sensitive Financial Data
Financial institutions often have to handle sensitive financial data that, if revealed, could put many customers at risk of fraud. But even if you’ve encrypted and protected financial information, attackers may still target your company to try to steal that sensitive data.
Whether your data is exposed or fully protected, a robust cybersecurity solution can keep you safer from hackers looking to take advantage of vulnerabilities.
2. Complying with Regulatory Requirements
Thanks to the storehouses of data financial organizations often keep, regulators have established strict data protection rules. These pertain not only to the kind of data you’re allowed to keep, but also:
- how you protect the data
- how long you keep it
- who’s allowed to see the data
If you’re found to be negligent in protecting any data that falls within regulatory requirements, you could get hit with substantial fines.
3. Reputation Management
Establishing and maintaining a reputation as a reliable, responsible institution is vital in an industry that relies so heavily on customer trust. A good reputation often pays, especially when you show you’re conscientious about protecting customer information and assets.
Customers often refer their friends and family members when they’re loyal to an institution. They also write positive reviews when their trust has been rewarded with thoughtful care. In marketing, this is known as the marketing flywheel effect, and you can leverage it to boost your net promoters and reduce detractors.
4. Protecting Your Organization from Insider Threats
Insider attacks are often relatively easy to initiate, especially when multiple people have access to sensitive areas of your network. But with a strong cybersecurity system in place, you can protect your assets with measures like zero-trust security systems and limited access policies that only allow project managers and others who absolutely need sensitive data to access it. You can also safeguard your company from insider attacks by canceling access privileges as soon as someone’s employment terminates.
A failure to take the appropriate measures can result in some of the most damaging press of all: the revelation that your own employees are untrustworthy. By taking steps right away, you can minimize the chances of an internal incident.
5. Maintaining Continuous Operations
While it’s difficult to calculate the exact cost of downtime, your business still incurs financial loss when you’re unable to continue operating as normal. And while downtime can stem from multiple factors, the most common cause is cyberattacks.
After an attack starts, the clock is ticking. Regardless of what your infrastructure looks like, there’s a dollar amount associated with every second. To reduce expenses associated with cybercrime, you want to establish a proactive stance on cybersecurity. But on top of that, by maintaining continuous operations, you also reinforce customer trust and employee morale.
6. Safeguarding Intellectual Property
It’s not just customer data that’s on cybercriminals’ wish lists. Your intellectual property entices them as well. Why? It may be worth money. Cyber espionage, which involves stealing and then selling corporate secrets, can provide a healthy source of income for opportunistic hackers.
For instance, you may have laid out your marketing strategy for the next year, and your competition may be willing to pay several thousand dollars for a peek. Or you plan on releasing a new product designed to empower customers with financial knowledge. Your competition may be more than open to giving an attacker a handsome paycheck so they can start developing a similar solution before you release yours. But by protecting your intellectual property with firewalls, encryption, and least-privileged access protocols, you can thwart cyber spies.
Cybersecurity in Finance
The advantages of establishing strong cybersecurity for accountants and finance go on and on. For many organizations, however, it can be hard to figure out where to find the cybersecurity talent to address vulnerabilities, educate employees, and prevent breaches.
But you can grow your cybersecurity forces with Insight Global. We know exactly what cybersecurity professionals need to know and the skillsets required to protect your organization from greedy criminals. See how we can partner by reaching out today.