How the financial industry is vulnerable to cyber attacks
Posted on June 11, 2020
2 mins to read
The financial industry is a very attractive target for cyberattacks. As of today, we know a couple of extremely “successful” International attacks. For example, in 2016, a hacker attack cost Bangladesh’s Central Bank $100 million. The same year, the Russian Central Bank lost $31 million. Since then, cybersecurity concerns are just growing and hackers’ interest is increasing. With the increased threat, the need for better cybersecurity became critical.
Cyberattacks can be damaging in many ways:
1. Damage can be as much as half of the profit
According to the International Monetary Fund, banks can lose from 9% to 50% of their profit due to cyber-attacks.
2. The damage spreads beyond just one company
Since the financial industry is interconnected and involves third parties and partners, financial losses of one institution can affect all of them making damage collateral, spreading widely.
3. Threat to reputation
When security is breached in the financial sector, people are less likely to trust that institution. OnePoll reported that more than 86% of responders were “not at all likely” or “not very likely” to do business with an organization that went through a data breach involving finances.
4. Attacks are no joke and can be lethal
Company size does not matter for hackers, but if you are a small financial institution, cyberattacks could become lethal. Attackers are very likely to find you as an easy target with less advanced security (due to limited funds). Hackers can can paralyze the organization leaving it with no money to operate.
Cybersecurity threats are serious and very risky to every company around the globe. Financial institutions are at higher risk since they have a huge capital amount to maintain and manage. What can be done is understanding the risks and protecting yourself from cyber-attacks.
Klik Solutions is experienced in providing cybersecurity to many different companies in the financial sector. Get a Proposal Now or call us at +1 (888)959-1196. You can also send us a message at info@klik.solutions. We are here to help!
