Enterprise Architecture, Security

Quarter of All Fin Services Under Attack

Data Breaches at U.S. Financial Service Businesses on the Rise

We live in a world where the bad guys never have to stop to catch their breath. They don't take breaks for a cup of tea every afternoon, don't need naps and rarely take a day off to unwind. No other industry is as aware of these sad but true facts as financial services.

hacker-2883632_1920.jpgRarely a day goes by where headlines don't send shivers down the collective spine of the industry. Of course, it's only natural for financial services to constantly be in the crosshairs of those bad guys. As the financial backbone of the entire global economy -- money obviously being the primary motivator for hackers, terrorists and anarchists alike -- there will never be a day when the financial services industry can take a deep breath and stop worrying about network and data security.

As foreboding as that sounds, however, all is not lost. With deliberate, organized and forward-thinking strategies, firms don't have to constantly feel like an insecure, proverbial sitting duck. As much as the intruders rely on technology to power their ill-intentions, the financial services industry can employ equally innovative and boundary-pushing solutions to best prepare and defend against an intrusive world.

At Xinn, our sole purpose is to help our partners in the financial services industry implement solutions that ready them for the constant gaze and attack of those that mean them harm. While data security has become an absolute necessity for firms, that certainly doesn't mean that they should have difficulty finding efficient and effective solutions.

Xinn makes it our business to provide such solutions for partners as we fortify and strengthen the entire industry, one partner at a time. A handful of statistics should be more than enough to convince you of the severe threats we collectively face.

An Escalating Threat

While technology advances and platforms evolve, a meticulous attention to detail is needed to make sure a firm's data and networks aren't exposed to potentially dangerous loopholes along the way. As convenient as cloud-based solutions and consolidating innovations are, they need to be embraced and implemented with absolute consideration or they risk making a firm's systems vulnerable to attack.

A recent study found that 24 percent of all organizations within the financial service industry experienced some sort of breach in the past year, up from 19 percent in 2016. An astounding 86 percent of participants within the study believe their companies are currently vulnerable to attacks on their data and network infrastructure. Although few might see the statistics as a surprise, the trend is undoubtedly alarming as nearly a quarter of all firms experienced some sort of attack within the last 12 months alone. Obviously, this trend will only continue to grow in magnitude and severity.

Technology Should Be Embraced Deliberately

As already alluded to, evolving technology can expose vulnerabilities that can be used for network intrusion. While the solutions afforded to firms by advancing technologies certainly offer significant benefits to nearly every facet of operations, they must be employed in a careful and deliberate manner or the entire firm and client base is exposed to risk.

network-2402637_1280.jpgBetween cloud, big data and its accompanying AI-based systems, IoT, and several other technologies now finding significant traction within the marketplace, data, communication, and network security are advancing at a significant pace. Referencing that same study, 47 percent of the respondents are integrating such technologies before even having the appropriate data security measures in place.

While forward-looking solutions are almost always sound investments into the future viability and longevity of any given firm, the manner in which they are deployed is just as important as adopting them in the first place. Integrating technologies in a haphazard fashion is effectively gambling on today to strive for a better tomorrow. Using innovative solutions before adequate security is in place puts everyone in danger - shareholders, clients, and employees alike - before they even see the benefits of those technologies.

A Few Best Practices Will Go a Long Way

Firms within the financial services industry should never let the foreboding and unsettling thought of data breaches prevent them from adopting technologies that will lead them into the future. However, the manner in which they're adopted is absolutely crucial in ensuring data network security into the future. After all, even the most beautiful of homes is structurally unsound if built atop a weak foundation. Data security is that foundation for the entire industry and must be given proper attention.

First and foremost, firms should choose platforms that emphasize cohesion and comprehensiveness as some of their primary features. In doing so, a firm is avoiding having a splintered approach to its technology platforms and are able to benefit from the simplicity and increased security that seamless communication between multiple systems can provide.

As the regulatory environment continues to grow in scope and complexity, automated platforms will also greatly enhance productivity while minimizing a firm's exposure to the consequences of human error and laborious, resource-consuming operations. Similarly, as a backstop to constantly monitor all systems for potential loopholes and threats, a security analytics system should be employed to ensure security as platforms are added to operations.

Xinn prides itself in our ability to provide our partners secure, effective solutions that embody the intelligent, well-organized technological evolution that will drive the industry into a successful future. Our insight and boundary-pushing, disruptive outlook on innovation within the industry makes Xinn a valuable partner as firms redefine their operations for a dynamic and demanding marketplace.

About the Author

I'm Paul, founder and CEO of Xinn. Reach out to me learn about Xinn's brand-new mobile-cloud platform which automates presentations and collateral while also providing a breakthrough digital engagement experience for customers and prospects that lead to actionable insights.

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