Banks Use Predictive Analytics and Information Sharing to Battle CybercriminalsBanker Resource
May 2, 2014 — 1,525 views
Cyber crimes can no longer be ignored. Malware attacks, like Automatic Transfer System (ATS), are not a hypothetical situation, they are happening in the real world. Distributed denial-of-service (DDoS) attacks against banks are also increasing at an alarming rate. DDoS attacks work like a smoke screen. They take the bank’s attention away from the real attack, while the attack is carried out. The biggest worry is that not only has the number of cyber attacks against banks increased, but the frequency has increased as well.
A report issued by Deloitte Center for Financial Services referred to a data security study conducted by Verizon. The study found that in 2013, 88 percent of cyber attacks against financial institutions succeeded within 24 hours. 46 percent of those were successful in a few hours, 8 percent were successful in a few minutes and an alarming 34 percent were successful in mere seconds. The cyber security mechanisms in place at these financial institutions were able to detect the attack in just 21 percent cases, and just 40 percent of those detections led to a restoration of services within 24 hours.
It has become increasingly clear to banks and other financial institutions that detections and response systems to cyber attacks need to be faster and more flexible.
Cyber-hackers are more organised
Say a decade back most hackers worked individually. However, now the scenario has completely changed. They are more organised, with tasks divided among hackers depending on their specialties. Some specialise in coding the malware programs. There are others with marketing skills who sell the program to other cyber-hackers. Then there are specialists who can supply infrastructure required to host the malware.
Multilayered cyber defense systems
Every financial institution needs a multilayered defense system against cyber attacks. The human and electronic elements of the attack need to be taken into account while designing the defense. Also, the defense mechanisms need to be constantly reviews to ensure they are up-to-date. It needs to be flexible enough to alter its functions based on changes on the style of the cyber attack.
Financial institutions have started utilizing security systems, like predictive analytics, anomaly detection and behavioral analytics as part of their defense against cyber attacks. These systems enable automatic analysis of vast amounts of data, which leads to faster detection and response times against cyber attacks.
Cyber-hackers do not shy away from collaborating or sharing information with their competition. So, why should banks not do the same? Financial institutions have woken up to the fact the external collaboration and coordination is extremely important. They can share detailed information regarding the latest cyber attacks, which better prepares all banks for the next such instance.