BFSI (Banking, Financial Services and Insurance) services are an integral component of any economy. Individuals and businesses alike depend on them for essential services; however, with digitization has come new cybersecurity threats which challenge BFSI providers in providing reliable protections. We will explore some of these challenges they must navigate while discussing measures they can take to defend themselves.

Introduction

The BFSI sector has long been a target for cybercriminals. Now, due to a shift towards online services and greater reliance on technology, its risks have become even greater. Data breaches to phishing attacks – any cyber attack can have severe repercussions for both an organization and its customers alike. In this article we’ll look at the state of cybersecurity in BFSI sector, its challenges, and ways in which risks may be reduced or avoided altogether.

The State of Cybersecurity in the BFSI Sector

The banking and financial services (BFSI) industry is highly regulated. Yet despite these regulations, cybercriminals still frequently target this industry; 17% of attacks in 2020 targeted it alone!

BFSI industries are frequently targeted by attacks such as phishing attacks, malware and ransomware. Phishing is particularly dangerous with cybercriminals employing social engineering techniques to gain sensitive information by tricking individuals into disclosing personal details.

BFSI Sector Challenges in Maintaining Cybersecurity

The financial services industry faces many difficulties in upholding cybersecurity. One of the primary obstacles lies with processing large volumes of customer data generated and processed by these institutions; financial institutions store vast amounts of customer information which cybercriminals may target and sell on dark web markets for considerable sums of money.

Another challenge arises from rapid technological development. When organizations adopt new technologies, they open themselves up to vulnerabilities which cybercriminals quickly exploit; therefore, companies must respond immediately by patching any open holes.

Measures to Mitigate Risks

BFSI service providers must take proactive steps in order to address cyber attacks and protect themselves. Here are some effective strategies:

1. Employee Education and Awareness

Employees can often be the weak link in an organization’s cybersecurity chain, so it is vital that employees understand the risks of cyber-attacks as well as how to recognize and respond effectively to them. Regular training sessions or awareness campaigns can greatly lower the chances of a successful cyber attack happening within your business.

2. Multi-Factor Authentication

Multi-factor authentication (MFA) adds another level of protection for user login processes by requiring them to provide multiple forms of identification at sign in time. By doing this, MFA makes it harder for cybercriminals to gain unauthorized access to sensitive data.

3. Regular Vulnerability Scans 

Conducting vulnerability scans regularly is an invaluable way for organizations to identify and patch vulnerabilities before cybercriminals take advantage of them, helping reduce the risk of successful attacks and stay one step ahead of criminals.

4. Incident Response Plan

An incident response plan (IRP) is a set of procedures an organization adheres to in case of cybersecurity incident, providing fast and effective responses that reduce damage caused by attacks while decreasing future attacks. By having one in place, organizations can respond quickly and efficiently in case an attack takes place – thus mitigating damages while decreasing risks in future attacks.

Conclusion

BFSI sectors are an integral component of economies worldwide and cybersecurity is a must. By taking measures discussed herein, BFSI service providers can protect themselves against rising cyber attacks while remaining financially sustainable in the process. But cybersecurity must remain an ongoing process if success is to be ensured.