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IoT Security Concerns for the Financial Industry

 Published: October 20, 2020  Created: October 14, 2020

by Roland Atoui

Any fast-growing industry can face cybersecurity threats. This comes as no surprise, considering how much we rely on technology nowadays. While certain tech breakthroughs help with efficiency and give great results, they also open the door to malicious attacks.

New threats are being registered almost daily, and our security has to be able to keep up. Let’s have a look at the Finance industry to see what kind of security concerns it might face.

The State of the Finance Industry

Finance is one of the first industries to have adopted the digital revolution. In a sense, it also drives digital innovation. One of the big staples for the Finance industry is the use of real-time data. In order to meet those needs, the industry takes advantage of IoT with real-time analytics. Nowadays you can’t even imagine life without analytics that connects and studies the purchasing behavior of clients by utilizing customer data.

However, that’s part of the reason why financial institutions are so attractive to hackers — if they manage to breach the security, they have instant access to customer financial data. This leads to significant financial loss for the institutions who suffer a breach, but perhaps more devastating is the loss of trust from their customers and investors.

Cyber-Attacks on Financial Institutions

The impact of a well-executed cyberattack on a financial institution can be immense. What may be even more worrying is that there are plenty of different kinds of threats that can all have catastrophic consequences. In 2017 we saw attacks on SWIFT systems, ATM infections, remote banking systems, so it’s reasonable to expect that this trend will continue. Unless financial institutions implement stronger security measures, they will continue being at high risk from cybercriminals.

Financial Use Cases

– Comprehensive Customer Analysis

  • ATMs, kiosks in bank branches, and credit/debit cards that monitor and take action on the consumers’ behalf for improved customer experience
  • Build enhanced view of customer households & networks by leveraging data from connected devices to mobile, social media, and partner data
  • Enhanced opportunities to launch new targeted services

-Enhanced Partner Connectivity

  • Enhanced partner relationships by connecting customers with other service providers
  • Higher revenue and new service opportunities
  • Secure future revenues while providing transforming services to meet customer needs

-Effective Operations

  • Effective and targeted promotions and marketing efforts
  • Enhanced up-sell/cross-sell opportunities
  • Optimal Utilization of facilities, and preventive maintenance of equipment and devices (ATMs, Kiosks, etc)

Financial Industry Security Concerns

With financial data being such a sensitive category of data, it comes as no surprise that the industry faces a multitude of security concerns by adopting IoT technologies. Let’s have a look at some of the common security concerns for the Finance industry:

  • Sensitive data risks — financial institutions have instant access to their customer data through financial IoT systems that aren’t always secure;

Financial phishing emails — legitimate-looking emails from fake banking pages that allow cybercriminals to collect customer’s data; Mobile banking malware — mobile devices that can be vulnerable to attacks, especially Androids; DDOS and ransomware attacks — cyberattacks that allow hackers to destroy data or hold it hostage until ransom is paid. How to Solve Security Concerns Finance companies must understand that applying traditional IT security policies and processes will not be enough and that without clarity on data flows within an IoT infrastructure, many cybersecurity threats will not be mitigated. Finally, it is strongly recommended that finance companies reconsider new adapted cybersecurity solutions when adopting IoT technologies to reduce the risks and ensure their customers.

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