Security in the Banking & Financial Solutions Sector
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WHITEPAPER 2021 SECURITYSECURITY IN INTHE THE BANKING BANKING & FINANCIAL& FINANCIAL SOLUTIONSSOLUTIONS SECTOR SECTOR WHITEWHITE PAPER PAPER | 2020 | 2020 Table of Contents 1. Executive Summary 3 2. Latest Security Threats in BFSI 5 2.1 Moving to Cloud and Cloud-Based tools 6 2.2 Cryptographic leaks 7 2.3 Exploiting Application Vulnerabilities 7 2.4 Spoofing 8 2.5 ATM Hacks 8 2.6 Phishing and Social Engineering 9 2.7 Work from Home 10 2.8 The Internet of Things (IoT) 10 3. Mitigating Security Threats and Recommendations 11 3.1 Cryptography and Key Management 13 3.2 Identity and Access Management 18 3.3 ATM, IoT and Mobile Application Security 20 3.4 Vulnerability Management 23 3.5 Securing Remote Working and Cloud Platforms 25 3.6 Phishing Attacks Prevention 25 3.7 Containment and Recovery 27 4. Summary 28 4.1 Comments from the Industry 29 5. Positioning 33 Contact 35 Security in the Banking & Financial Solutions Sector 2 1. Executive Summary Real and potential Risks There are increasing risks and technological challenges to data and transaction security in the Banking Financial Services and Insurance industries (BFSI). This paper will examine the types of real and potential attacks being confronted, and the various technologies available for implementation to avoid data breaches, corruption, and theft. While the analyses include the classical and known risks to data and financial transactions, they also look at the exposures evolving in traditional data security, quantum computing, and the trend toward working from home and bringing your own device (BYOD) to enterprise architectures. Financial institutions have not failed to respond to these ominous developments in digital crimes. They have remained largely proactive by investing in technology to improve their security profiles. The complexities of risk management, however, have become almost profound, and traditional approaches to IT security can BFSI firms are three be inadequate as banking continues to emerge in international economies as a “boundary-less” ecosystem. hundred times more likely than Financial services and insurance companies make attractive targets for hackers and digital criminals of all types. According to the Boston Consulting Group, BFSI firms are other institutions three hundred times more likely than other institutions to experience a cyberattack.1 A study by Check Point Software Technologies also indicated that malware has to experience a become an enthusiastic endeavor of crypto miners, and that 28 percent of global cyberattack. enterprises were struck by botnet activity in 2019, an increase of 50 percent over the previous year. 1 https://www.bcg.com/publications/2019/global-wealth-reigniting-radical-growth Security in the Banking & Financial Solutions Sector 3 Re isk pu R ta ry ng to Cloud and ti o Movi on t ud Based Tools a la Clo W l u ork R g fr s om is e ck k R a In H Mobile Bank o h ternet m M e T A de & Data and security dangers can appear to be ing T advancing as quickly as technology. Cybercrimes h o e f c T I i n are no longer the exclusive province of a h h t ATM and QR Co i e p Branch and IVR n r a s g n handful of clever hackers seeking to make easy r k s e g a t o e t money or shut down business enterprises for L p POS and Kiosk y r various motives. A degree of professionalism C k F has begun to inform cyber-criminal groups. s BFSI i i y n R Hacking groups like Fin7 function almost as a a E l x n p Video Bank d g a n professional organization and it is estimated to l n i c o a r n i V it e 2 g a u i yment Gatewa e o n n make approximately $600 million annually. i Pa l l n g i in ing t h e A s g R r p i a a h n p E i r b l P l s i ic nter e l a i a i k ti t c p e io Ce o s n S O Call rty pa rd- S Thi ts poo ting en ng Trus onm Envir T echnology Risk The recent pandemic has added new, confounding dynamics to protecting data and transactions. As work forces take up their tasks remotely to prevent viral disease exposure, more businesses and institutions are compelled to increase investments in cloud services and tools. Consequently, a surge in digital transformation is unfolding, accelerated, in part, by the pandemic, and prompting the adoption of cutting-edge technologies like Robotic Process Automation and platforms that facilitate mobility and workplace collaborations. These transformations also require innovative tactics and strategies for security. A holistic approach that considers the entire infrastructure of an enterprise probably provides the most safety. A comprehensive plan is essential when nothing more than a small, technological loophole can allow a hostile actor to penetrate into a datacenter. In fact, the increased assault on digital domains began almost as quickly as the pandemic spread across the world. The Indian, English language publication, The Economic Times, reports that cyber security attacks in that country appear to have jumped as much as five hundred percent since the onset of the global lockdown in March. According to Ginni Rometty, IBM Chairman, President, and CEO, “Cybercrime is the greatest threat to every company in the world”.3 She might have understated the true nature of the danger. In the next five years, cybercrime has the potential to negatively impact almost every element of life in our world, whether it is business, finance, entertainment, education, travel, or government. Digital crime might even be evolving faster than tech security measures. 2 https://www.wired.com/story/fin7-carbanak-hacking-group-behind-a-string-of-big-breaches 3 https://www.ibm.com/blogs/nordic-msp/ibms-ceo-on-hackers-cyber-crime-is-the-greatest-threat-to-every-company-in-the-world Security in the Banking & Financial Solutions Sector 4 2. Latest Security Threats in BFSI The risks of online business Money, in digital or physical form, has always attracted illegal activity, and the BFSI sector has a particular allure for thieves and other cybercriminals. There is an array of valuable data that can be stolen or corrupted for financial gain because there are numerous touchpoints in banking and insurance enterprises. These include, of course, financial transactions, which often involve multiple integrated transaction channels. Sensitive customer and business data are also often irresistible to hackers and criminal operations. The consequences of a successful attack on any BSFI business vector can be devastating when firms are faced with losing not just money, but also experience non-functioning customer services, stolen private information, and, ultimately, diminished brand reputation. These risks to the BFSI verticals are not shrinking in intensity or scope. The M-Trend 2020 Report produced by FireEye indicated that the past three years have seen the BFSI sector as one of the top three targets of cybercriminals.4 The industries are, however, constantly evolving to improve and increase customer services but those advances also multiply vectors that might be endangered and can expand the breadth of attack surfaces. Assaults are becoming more complex and hostile actors increasingly use more sophisticated approaches to breach the perimeters of digital enterprises. The very nature of conducting online business creates probable risk. 4 https://www.fireeye.com/current-threats/annual-threat-report/mtrends.html Security in the Banking & Financial Solutions Sector 5 2.1 Moving to Cloud and Cloud-Based tools As technology has continued to iterate and offer storage infrastructure and computing as services, the trend has been for businesses to transition away from using their own on-premises hardware and software to conduct transactions.Cloud Service Providers There can be perils (CSPs) give executives the option of reducing capital investment in infrastructure associated by by moving their operations off premises and into the cloud. While this is almost always a sound business decision, there can be perils associated with operationalizing moving operations a business in the cloud. into the cloud. There remains, for example, too much unencrypted data in the BFSI vertical segment. Even after encryption in the cloud, insecure handling of keys can lead to invasions of stored data. Further, a misconfigured Access Control List (ACL), poor Key Management Services (KMS), and flawed Identity and Access Management (IAM) policies can generate unknown weaknesses in protective measures. Simply being locked-in to a vendor by a contract can also produce issues; especially if the agreement does not give total key management to the customer. Analysis of recent cybercrimes has shown that attackers have begun to scan storage buckets that might not be properly guarded, even though they contain confidential data. This type of vulnerability can occur when enterprises employ an unsecure, third- party Cloud Service Provider (CSP). Data captured from these unprotected “buckets” can be published in parts or samples, which elevates exposure and facilitates the theft of large amounts of information from corporations. The growing implementations of cloud services and cloud-based applications continues to intensify. CIOs and CISOs need to answer how to secure their digital transformation to hybrid multi-cloud environments, considering how they transform their infrastructure to a hybrid multi-cloud environment. Trusting Third-Party Environments Networks being operated by BFSI firms are constantly introducing new portfolio components that add to their complexity. Factors like achieving compliance with the revised Payment Services Directive (PSD2) in the European Union and open APIs tend to necessitate the incorporation of third-party environments in the BFSI space.