Identity security is crucial to the financial services balancing act, writes David Higgins, senior director, Field Technology Office at CyberArk.
The financial services sector operates and deals with a significant amount of confidential client and customer data for daily business transactions. The value of this data – and the detrimental consequences of it getting in the wrong the wrong hands – is arguably greater than any other industry.
The protection of this sensitive financial information hinges on the strength of its access controls and the robustness of identity management for those who interact with it. In the precarious balancing act of the financial services industry, identity security acts as a crucial safeguard, carefully designed to catch potential errors before they lead to catastrophic outcomes.
Much like an acrobat depends on a safety net for assurance when performing at great heights, financial institutions – ranging from multinational corporations and insurance providers to local banks and credit unions – traverse a landscape fraught with various risks. They rely on identity security to maintain stability and assurance amidst the complexities of online banking operations and financial data transfers.
As the digital financial landscape expands, bearing an unprecedented volume of data and transactions, the demand for an ironclad identity security system becomes critical. This is underscored by the alarming statistic that 93 per cent of organisations worldwide experienced at least two identity security-related incidents in the past year. This protective framework needs to do more than just prevent failures; it must foster the confidence necessary for advancement, innovation, and secure, efficient customer engagement.
Security safety net
To ensure the financial sector’s safety net is both resilient and responsive, there are six foundational elements that you need to consider to enhance identity security and future-proof against growing cyber risks. The first of these is the principle of least privilege. This process requires careful calibration of your security measures, ensuring that access is granted exclusively to authorised parties at appropriate times. It necessitates striking a delicate balance between user-friendly experiences and robust security protocols to thwart unauthorised entry.
Intelligent privilege controls are also important here. IT teams need to strengthen the fibres of their net with smart controls for protecting IT administrators, for example, by also introducing a zero standing privileges approach to access management. By implementing strict access management, you reduce the likelihood of security incidents while simultaneously ensuring your staff retains the necessary flexibility to carry out their duties efficiently.
Unified identity orchestration is the third foundational element. Strengthen your security framework by centralising and unifying all identity-related processes. This consolidated approach enables early detection of inconsistencies and potential security risks, allowing for pre-emptive action before any damage can occur. Proactive threat detection, comprehensive identity mapping and adaptive authentication are the steps that need to follow. Enhance your identity security infrastructure with highly sensitive detection systems capable of identifying even the subtlest signs of potential threats, enabling prompt responses. Then implement ongoing surveillance and instantaneous data analysis to quickly recognise and address security risks. Ensure comprehensive visibility and accountability within your security framework by thoroughly documenting all human and machine identities present on your network. This complete awareness is vital for maintaining robust security measures. Finally, adjust your security protocols in response to changing circumstances by employing contextual, flexible multi-factor authentication (MFA) that adapts dynamically to fluctuating risk levels. This approach bolsters identity security while preserving a smooth user experience.
Increasing safety standards beyond just compliance
Regulatory standards such as SWIFT CSCF, Sarbanes-Oxley (SOX), 23 NYCRR 500, and DORA provide a foundational structure for security measures. However, true leadership in global financial security goes beyond mere compliance. It involves collaborative efforts to create a proactive security system that anticipates potential risks and reinforces vulnerable areas before they are exploited.
For those working in financial cybersecurity, this presents a prime opportunity to not only ensure compliance but also to pioneer innovative security models. By incorporating these six strategic elements into your identity security framework, you’re not just safeguarding assets; you’re fostering an organisation-wide culture that prioritises identity security at every level.
Approaching identity security with confidence
Adopt this comprehensive strategy for identity security to ensure your financial operations can function with assurance in today’s complex financial environment. By reinforcing your own security measures, you’re protecting more than just data and transactions – you’re safeguarding your customers’ trust and confidence. Implement these approaches to maintain agility and security in a field where both risks and potential gains are substantial. As financial security continues to evolve, robust identity protection measures are not just essential – they’re a competitive advantage. By embracing these strategies, your organisation can effectively address current challenges while laying the groundwork for a secure and successful future in the digital era.
