ThoughtWorks

Making the BFSI Sector Secure

Adopting security solutions that leverage latest technologies can help the BFSI sector ensure security and privacy of data

The global security market is poised for an exponential growth primarily driven by rising demand for cloud-based security solutions, evolving cyber threats, and changing regulatory landscape requiring security compliance. The Markets & Markets Global Forecast to 2021, estimates that the security market will likely grow at a CAGR of 10.1% to reach $48.95 billion by 2021.

BFSI a Hot Target

The money-rich BFSI sector is a favourite target for cyber attacks. In the recent years, the cyber attacks against BFSI companies have not only increased but also become more sophisticated. The sector has also seen a rise in the number of incidents of fraud that have caused major financial losses to businesses. Experts believe the sector will see no respite from these attacks in the near future as well with attacks increasingly aimed at stealing money and identity.

Identity fraud is one of the biggest threats facing the BFSI sector with cyber criminals taking over accounts of unsuspecting customers and stealing their money. For instance, more than 9,000 customers of a large bank in the UK lost more than two million pounds from their accounts to hackers. Another complex fraud that the BFSI sector is struggling with is synthetic fraud. Cyber criminals use stolen customer data together with fake credentials to create full profiles of non-existent individuals and commit financial crimes.

Technology to the Rescue

BFSI companies are taking measures to foil fraud attempts while ensuring that customers do not face any glitches while transacting online. BFSI companies are fortifying their defense systems by deploying security mechanisms that leverage the power of the latest technologies namely: artificial intelligence, machine learning, blockchain, and big data analytics.

In addition, regulations such as the EU General Data Protection Regulation mandate businesses – dealing in customer data – to ensure security of the data they possess. BFSI companies probably have the biggest chunk of personally identifiable customer data, which must be protected from potential exposure to cyber criminals. As such, BFSI companies must identify critical data and other digital assets and accordingly prioritize their security. Failure to secure data will not only lead to non-compliance with regulations and attract hefty fines, but also provide cyber criminals with opportunities to launch numerous financial crimes.

The article has been written by Neetu Katyal, Content and Marketing Consultant

She can be reached here.

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