Common Cybersecurity Terms Decoded
Navigating the intricate landscape of cybersecurity can seem daunting, especially when confronted with an array of unfamiliar terms. Decoding cybersecurity jargon can offer clarity and context particularly tailored for the financial sector.
Threat, Vulnerability, and Risk
- Threat. A threat is an entity or event that has the potential to harm a system.
- Vulnerability. A vulnerability is a weakness or gap in a system’s security measures.
- Risk. A risk is the potential for loss or damage when a threat exploits a vulnerability.
To illustrate this concept more concretely, consider a real-world analogy: Think of a bank’s physical security system as outdated technology (representing a vulnerability). As this vulnerability persists, the likelihood of a potential bank robbery (threat) increases, posing a significant risk to the bank, both in terms of financial loss and reputational damage. In a similar vein, if a bank’s network infrastructure is outdated, the likelihood of a security breach (threat) rises, which, in turn, elevates the risk of financial loss and damage to the bank’s reputation. Moreover, this elevated risk can also result in the loss of valuable customers who prioritize the security of their financial assets.
Malware, Ransomware, and Phishing
- Malware is malicious software designed to disrupt, damage, or gain unauthorized access to computer systems. In a financial context, malware is software that can secretly monitor transaction details or steal customer data.
- Ransomware is a subset of malware that encrypts a victim’s files. Once installed, threat actors then demand a ransom from the victim to restore access. Financial services organizations are juicy targets because of the sensitive data they hold and their capacity to pay hefty sums to retrieve it.
- Phishing is when a threat actor posing as a trustworthy entity tries to lure individuals into providing sensitive data via email, phone, or text message. Bank customers might receive an email urging them to click on a link and verify account details—only to discover they are the victim of a scam.
Security Culture
- Security culture refers to the collective values, beliefs, attitudes, and behaviors within an organization or community regarding security and the protection of assets, information, and resources. It encompasses the organization’s approach to security, its commitment to maintaining a secure environment, and the way individuals and groups within the organization perceive and prioritize security-related matters.
Consistent training cultivates a culture where security becomes a shared responsibility, extending beyond IT or IS professionals. Informed and vigilant employees are less likely to fall prey to malicious links or suspicious attachments. Furthermore, it’s essential to recognize that employees often represent the weakest link in security. Instances of negligence, inattention, unintentional information sharing on social media, and even deliberate misconduct can all pose significant risks. Thus, nurturing a robust security culture is imperative in order to minimize vulnerabilities and reduce the likelihood of phishing, malware, and ransomware attacks.
Multifactor Authentication
- Multifactor authentication (MFA) is an added layer of security to confirm identity and appropriate account access. First, users enter their usernames and passwords. Then, instead of immediately gaining access, they are required to provide another piece of information, which could be a code sent to their phone or a fingerprint. Even if threat actors steal one key (a password), they can’t access the contents without the second key (the unique code or fingerprint).
Because financial services professionals handle vast amounts of confidential data and large transactions, safeguarding this information is paramount. It’s imperative that only authorized personnel access these details. Unauthorized access to such data can have severe consequences, making the implementation of MFA an essential tool to deter unauthorized access, and enhance security in the financial sector.
Firewall and Antivirus Software
- Firewall. A firewall is a network security device or software designed to prevent unauthorized access to or from a private network. It monitors activity coming in and going out of the network.
- Antivirus. Antivirus software is designed to detect, stop, and remove malicious software such as viruses. Antivirus software monitors for suspicious activities on the network.
Every online financial transaction passes through several layers of security. Making sure that security checkpoints such as firewalls and antivirus software are up-to-date can mean the difference between a successful transaction and a compromised one.
Encryption and Virtual Private Networks
- Encryption converts information or data into a code to prevent unauthorized access. When financial data is encrypted, even if intercepted it appears as gibberish to unauthorized individuals. Encryption is akin to communicating in a secret language only the bank and its customers understand.
- Virtual private networks (VPNs) allow users to create a secure connection to another network over the internet. For financial services professionals working remotely, a VPN acts like a secure tunnel that helps keep data shared between remote individuals and their organizations confidential.
With increasing online transactions and remote work arrangements, encryption and VPNs are critical tools in safeguarding sensitive financial data against prying eyes.
Incident response and disaster recovery
- Incident response is an established protocol that details the processes to follow when a breach or other security event occurs, including how to alert the authorities, preserve evidence, and communicate with stakeholders.
- Disaster recovery. As a subset of incident response, disaster recovery focuses on restoring and maintaining the business operations after a security event. In the same way an organization might respond to a physical event such as a flood or fire, disaster recovery in cybersecurity is a blueprint restoring network operations, from assessing damage to retrieving backed-up data and making sure customers can access their funds.
Financial services professionals often serve as the first line of defense in recognizing irregularities that might signify a breach. Being well-versed in incident response can help them act swiftly and potentially contain the breach. Furthermore, understanding disaster recovery helps organizations restore normalcy and minimize disruptions to operations and customers.
