Combatting Zero-Day Exploits In Financial Services

Uploaded on 2024-06-19 in TECHNOLOGY--Resilience, FREE TO VIEW, BUSINESS-Services-Financial

A zero-day attack is a sophisticated cyberattack that exploits vulnerabilities in a computer's software or hardware that are unknown to the vendor or developer. These vulnerabilities are yet to be patched or mitigated, hence the term zero-day, indicating that there are zero days left to rectify the flaw.

Over time, zero-day attacks have become more elaborate, leveraging advanced techniques and targeting high-value assets. Among industries, the financial sector has been a prime target for malicious hackers. Financial institutions handle vast amounts of sensitive data, making them lucrative targets for cybercriminals.

According to Statista, the finance sector remained one of the top target industries for cyberattacks in 2023. As cyber threats continue to grow in complexity and frequency, the financial sector must remain vigilant and proactive to safeguard critical assets and customer information.

The Impact Of Zero-Day Attacks On Financial Organisations

Financial companies and their customers can face severe consequences as a result of a zero-day attack. Since these exploits leverage previously unknown vulnerabilities, hackers are easily able to evade detection by traditional security measures such as antivirus software, intrusion detection systems (IDS), and other security systems. Cybercriminals can gain unauthorised access to sensitive customer data for a longer period, including personal identification details, account numbers and transaction histories leaving customers exposed and vulnerable.

Zero-day attacks can also disrupt critical systems, leading to downtime, loss of service and operational challenges

The aftermath of a zero-day attack can be equally devastating with the damage extending beyond immediate financial losses. They can negatively impact the reputation of financial organisations in the long term, resulting in high attrition and difficulty in customer acquisition. Financial institutions are also subject to stringent regulations regarding data protection and cybersecurity. A zero-day attack can lead to hefty regulatory fines. The impending costs for IT and data recovery as well as conducting system repairs can also compound leading to significant financial downturns for businesses.

Key Measures To Protect Against Zero-Day Attacks

As zero-day attack threats continue to grow, financial institutions must adopt a multi-faceted approach to safeguard their assets. Companies can upskill employees through regular cybersecurity training and workshops. By educating staff and spreading awareness of cybersecurity best practices, businesses can effectively mitigate risks and potential threats. Financial organisations can also bolster their IT systems by harnessing advanced security technologies, like intrusion detection systems, firewalls, and endpoint encryption. As a result, organisations can spot suspicious activities ahead of time.

Organisations must take a proactive approach to protect themselves against zero-day attacks by continuously analysing their security systems and networks. They must update and patch their software on an ongoing basis. Additionally, regular security audits can also help financial institutions identify gaps, allowing them to strengthen their security posture.

While organisations proactively strengthen their security posture, they must not overlook the importance of effective reactive approaches to deal with a zero-day attack in case it occurs. Once a cyberattack is identified, organisations must swiftly identify and isolate compromised systems to prevent potential spread. While permanent vulnerability fixes may require time, businesses must ensure that they implement temporary workarounds to minimise consequences.

The Role Of Technology

Organisations must deploy innovative solutions that are based on zero trust architecture (ZTA) frameworks. Operating on the principle of least privilege, ZTA-based solutions can ensure each user, internal or external, is required to pass through the same level of security authentication at all times. Additionally, these solutions can enable organisations to provide access at a granular level. As a result, users are only granted access to data and applications that are necessary for them to perform their jobs. This means a maintenance technician may not get access to financial data while a finance manager may not get control of backend and security solutions. This can significantly reduce the threat surface for companies, allowing them to minimise lateral movement.

ZTA solutions can also enable financial organisations to segment their networks into distinct zones, essentially putting up roadblocks that hinder any new malware from attacking internal systems. Additionally, organisations can constantly monitor network traffic, device and user activity. As a result, they can react quickly in case a suspicious activity is identified.

Virtual desktop solutions can also serve as an effective solution against zero-day exploits. Enabling centralised management and regular deployment of patches and updates VDI ensures agility, scalability and security for both virtual devices and cloud-based resources. By harnessing VDI financial institutions can rapidly adapt to meet evolving security requirements, backup data to prevent loss, and deploy updates across the organisation when needed.

Looking Ahead

With the cyber threat landscape constantly evolving, financial institutions must adopt a robust cybersecurity defence to protect themselves.

By utilising a holistic cybersecurity strategy which encompasses extensive training, and advanced security technologies based on ZTA, financial companies can protect their assets, ensure compliance, and maintain customer trust in the long term.

Dominik Birgelen is CEO of oneclick AG

Image: Ideogram

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