Financial Investment Needed To Mitigate Cyber Risks

The financial sector is particularly vulnerable to cyber-attacks, with banks, investment firms, and insurance companies being attractive targets for cybercriminals due to the large amounts of sensitive data and money they handle. As such, financial institutions must implement robust cybersecurity measures to protect themselves and their customers. The types of cyber risks requiring financial investment include phishing, malware, distributed denial-of-service (DDoS) attacks, insider threats, and man-in-the-middle (MitM) attacks. Phishing, one of the most common attack vectors, involves tricking users into divulging login credentials, often through deceptive emails. Malware encrypts data and demands ransom for its release, while DDoS attacks overwhelm systems with resources, rendering them inaccessible. Insider threats come from members of the organization with access to sensitive data, and MitM attacks involve intercepting communications between two parties. To mitigate these risks, financial institutions need to invest in cybersecurity strategies, including multi-factor authentication, regular security audits, employee training, data encryption, and zero trust security models.

Phishing attacks

The sophistication of phishing attacks has evolved, and they are no longer limited to poorly written emails. Attackers now craft communications that closely resemble legitimate business transactions, making it difficult for individuals to distinguish between a genuine email and a phishing attempt. As such, organisations must invest in robust security measures to protect themselves and their customers.

• Employee Training and Education: Organisations should invest in regular training and awareness programs to educate employees about the latest phishing tactics and how to recognise and respond to suspicious emails.
• Security Technologies: Advanced security technologies, such as multi-factor authentication, encryption, and artificial intelligence-powered threat detection, are crucial investments for financial institutions. These technologies add layers of protection and help detect and prevent phishing attempts.
• Incident Response and Recovery: Financial institutions should allocate resources to develop and test incident response and recovery procedures. This includes establishing effective response protocols and crisis management frameworks to ensure they can deliver critical business services during disruptions.
• Security Audits and Penetration Testing: Regular security audits and penetration testing are essential to identify vulnerabilities and assess the effectiveness of security measures. Organisations should invest in tools and expertise to simulate phishing attacks and measure employee responsiveness.
• Data Backup and Disaster Recovery: Investing in secure data backup solutions and disaster recovery plans is vital. This ensures that even if a phishing attack succeeds, the impact can be minimised, and operations can be restored quickly.
• Zero Trust Security Model: Implementing a Zero Trust Security Model assumes that all users and systems are untrusted. This approach requires verification for any party trying to access resources within the network, adding an extra layer of protection.
• Vendor Risk Management: Financial institutions often rely on third-party IT service providers, increasing their exposure to cyber risks. Investing in assessing and monitoring the security practices of these vendors is crucial to identify and mitigate potential risks.

By making financial investments in these areas, organisations can significantly enhance their resilience against phishing attacks and protect their customers, data, and financial assets.

Ransomware and Ransomware-as-a-Service

Ransomware is a type of malware that encrypts data on a victim's device or network and demands a ransom payment in exchange for restoring access to the data. It is a significant cyber threat, with a reported average ransom demand of $6 million in 2021.

Ransomware-as-a-Service (RaaS) is a business model where ransomware developers sell ransomware code or malware to other hackers, known as "affiliates", who then initiate their own attacks. RaaS operators often provide their affiliates with additional tools and support, such as technical support, forums for exchanging information, and payment processing portals. This model lowers the barrier to entry for cybercriminals, as they can access ransomware kits for as little as $40 per month, and even those with limited technical expertise can launch attacks.

RaaS operators typically use one of four revenue models:

• Monthly subscription for a flat fee
• Affiliate programs, which are similar to the monthly fee model but with a percentage of the profits (typically 20-30%) going to the ransomware developer
• One-time license fee with no profit sharing
• Pure profit sharing

RaaS has become a popular choice for cybercriminals, with total ransomware revenues reaching approximately $20 billion in 2020. This success is due to the mutual benefits it offers to both hackers and ransomware developers. Hackers can profit from extortion without developing their malware, while developers can increase their profits without the effort of attacking networks and can profit from victims they might not have otherwise targeted.

To protect against RaaS attacks, organizations should implement comprehensive incident response plans, use anomaly-based detection tools, reduce their network attack surface through frequent vulnerability assessments and patches, provide cybersecurity training for employees, and implement access controls such as multifactor authentication and zero-trust architecture.

SQL Injections, Local File Inclusion, Cross-Site Scripting, and OGNL Java Injections

SQL Injections

SQL injection (SQLi) is a cyberattack that involves injecting malicious SQL code into an application, allowing the attacker to view or modify a database. Attackers can retrieve and alter data, compromising sensitive company data and private customer information stored on the SQL server. To prevent SQL injection attacks, it is crucial to install the latest software and security patches, use accounts with minimum privileges, validate user-supplied input, and configure error reporting.

Local File Inclusion

Local File Inclusion (LFI) is a vulnerability that occurs when an application permits an attacker to include and execute local files on a server due to improper input validation and inadequate security mechanisms. By exploiting LFI, attackers can gain unauthorized access to sensitive files, leading to data theft, privilege escalation, and remote code execution. To prevent LFI attacks, robust input validation, file access restrictions, secure coding practices, and web application firewalls (WAFs) are essential.

Cross-Site Scripting

Cross-site scripting (XSS) vulnerabilities arise when manufacturers fail to properly validate, sanitize, or escape inputs, allowing threat actors to inject malicious scripts into web applications. This enables them to manipulate, steal, or misuse data. While input sanitization techniques are used to prevent XSS vulnerabilities, they should be reinforced with additional security measures, such as input validation, modern web frameworks, and aggressive adversarial product testing.

OGNL Java Injections

Object-Graph Navigation Language (OGNL) is an open-source Expression Language (EL) for Java objects, commonly used in the Apache Struts development framework. OGNL injection vulnerabilities enable attackers to modify system variables or execute arbitrary code by injecting expressions that can execute malicious Java code. To protect against OGNL injection, security solutions can detect vulnerable Struts2 components in software to prevent attacks.

Distributed Denial-of-Service (DDoS) Attacks

During a DDoS attack, the targeted system is flooded with massive volumes of traffic, rendering its services inaccessible to intended users. This can lead to severe consequences, including compromising the availability and integrity of online services, and causing significant disruption, with the potential for financial losses and reputational damage.

DDoS attacks can target a range of institutions, including financial institutions, news organizations, internet security resource providers, and government agencies. Any organization that relies on network resources is considered a potential target.

To mitigate the impact of DDoS attacks, organizations can employ a combination of strategies, including:

• Traffic filtering: Blocking or allowing specific types of traffic by examining incoming network traffic.
• Rate limiting: Restricting the number of incoming requests or packets within a specified time frame.
• Anomaly detection: Monitoring network traffic patterns to identify deviations from normal behavior, using statistical analysis and machine learning algorithms.
• Behavioral analysis: Monitoring the behavior of users, systems, or network entities to detect and identify suspicious or malicious activities.
• Content delivery networks (CDNs): Using distributed network infrastructure to identify and block malicious traffic, ensuring legitimate requests reach the target.
• Load balancers and application delivery controllers (ADCs): Distributing and managing traffic to defend against DDoS attacks.
• Cloud-based DDoS protection services: Redirecting traffic through advanced mitigation techniques, real-time threat intelligence, and specialized providers.

It is important to note that DDoS attacks are constantly evolving, and organizations need to stay updated on the latest trends and developments to protect themselves effectively.

Supply Chain Attacks

Supply chains are an attractive target for cybercriminals as they often involve numerous external parties, each with varying levels of cybersecurity measures. This creates a weak link in the chain that can be exploited to gain access to sensitive data or inject malware.

To mitigate the threat of supply chain attacks, organisations should:

• Conduct thorough due diligence when selecting vendors, ensuring they meet stringent cybersecurity standards.
• Implement regular security audits and contractual obligations to enforce compliance and reduce third-party vulnerabilities.
• Encourage a culture of skepticism among employees and teach them to identify suspicious communication to reduce the risk of social engineering schemes.
• Implement encryption, access controls, and regular security assessments to safeguard sensitive information.
• Develop an incident response plan to promptly detect, contain, and mitigate the impact of a data breach.
• Regularly update software and employ robust cybersecurity tools to protect against ransomware attacks.
• Conduct regular backups of essential data to minimise downtime and financial losses in the event of an attack.
• Diversify the supplier base and review the cybersecurity posture of critical suppliers.
• Establish contingency plans to mitigate the impact of potential supply chain disruptions.
• Collaborate with partners and vendors to enhance collective resilience and create a cyber risk posture.

One effective way to gain visibility into supply chain risks is to use a platform like Risk Ledger, which provides continuous insight into direct suppliers' security posture and deep visibility into the relationships and risks beyond third parties.

Frequently asked questions