Key cyber security issues in digital finance
Financial institutions have to reconcile two opposing concepts: openness (for greater agility and to win new clients) and security, one of the most important value propositions (after all, we are talking about money here...).
The two key issues in cyber security in the area of digital finance are:
- The common cyber security issues, such as denial of service, data theft, IAM, and cloud & DevOps-related cyber security.
- Finance-specific cyber security issues have a lot to do with the particularities of financial institutions, such as their complexity or the critical nature of client interaction systems and financial processes, e.g. anti-money laundering.
Financial institutions are subject to tight regulations; being at the core of very sensitive processes, such as payment transactions, the financial services industry is the most frequently attacked sector and one that has a strong impact on the rest of the economy. Lately, stricter regulations across the globe have strongly affected the financial institutions, due to the obligation to change as well as the costs associated with this.
Additionally, due to the fact that financial institutions are strongly involved in digital transformation processes, they get in contact with new developments in cyber security quickly, especially the blockchain technology with its game-changing potential for IT and business.
PAC goes deeper into the subject in its latest report.