Week 2 Blog

Financial Institution and Cypersecurity

I would say, cybersecurity would be one of the most important aspects of any financial institutions.  It is because the companies store and perform their daily business with two critical information.  They are financial data (money) and customer data (customer personal information), which are the two very sensitive and confidential information that has a huge impact on their business.

Nowadays, we have seen that the technology has been improved so much that all financial companies are moving forward to use online banking and services.  For example, when I refinance my house couple weeks ago, I could submit the application online.   Then other forms, the bank email to me, I could just fill it out, e-sign it and then submit them thru the bank’s security website.  I did not have to be at the bank office until the closing day.  Online services are the great ways to help both companies and customers do save time when doing business but it also leaves many security holes that would leave the bank with many vulnerable ways.  Bad guys exploit on those security holes to steal the money and customers’ personal information.  “When the financial services sector is disrupted, it can quickly cause instability for banking institutions and weaken public and consumer confidence overnight.”

Financial information and customers’ information is the crucial data for financial institutions.  Therefore, the task for IS Security team is to protect them by all mean became so vital.  Maintaining and keeping the financial institutions away from security threats are not an easy task but it is required that financial companies stay on top of security technology to protect themselves and their customers in term of readiness to defend and response all threats. 

Reference:

Schober, Scott (JULY 22, 2016).  How fraud and breaches of cybersecurity impact financial institutions.  Retrieved from http://www.ibmbigdatahub.com/blog/howfraud-andbreaches-cybersecurity-impact-financial-institutions