Financial institutions are gold mines of data. So, they have always been the main targets of different types of cyberattacks. The pressure to keep everything secure is higher in the financial industry, and the complexity of financial and banking cybersecurity regulations adds more challenges to strengthening security.
In this blog, we will go through the regulatory landscape of financial institutions and the robust solution that can help these organizations keep their activities secure, protecting both data and their reputations.
Navigating Cybersecurity Regulations in Financial Services
Financial data is highly sensitive and needs strong protection. With increasing cyber threats, having a solid cybersecurity plan and adhering to regulations is vital to safeguard data, earn trust, and prevent penalties.
The challenge, however, goes beyond security. Regulations are constantly changing, with different rules, and these organizations must keep up with them. Therefore, understanding the regulations precisely is also essential.
Key Cybersecurity Regulations for Financial Institutions
Check the table of important cybersecurity regulations that financial institutions must follow:
| Regulation | What It Covers | Main Requirements |
|---|---|---|
| Gramm-Leach-Bliley Act (GLBA) | Protects consumer financial information. | Requires security programs, risk assessments, and safeguards. Includes rules for information security and data sharing control. |
| Sarbanes-Oxley Act (SOX) | Focuses on corporate governance and financial reporting integrity. | Requires internal controls for financial reporting and cybersecurity. |
| Payment Card Industry Data Security Standard (PCI DSS) | Secures credit/debit card data. | Requires encryption, firewalls, access control, vulnerability scans, network segmentation, and regular security testing. |
| NYDFS Cybersecurity Regulation (23 NYCRR 500) | Establishes cybersecurity rules for New York financial institutions. | Requires multifactor authentication, encryption, risk assessments, third-party risk management, and cybersecurity personnel. |
| SEC Cybersecurity Disclosure Requirements | Requires public companies to disclose cybersecurity risks. | Mandates disclosure of risks, board oversight, incidents within four days, and reporting integration. |
| FFIEC (Federal Financial Institutions Examination Council) | Provides guidelines for federally regulated financial institutions. | Requires risk assessments, security evaluations, and incident response plans. |
| NIST Cybersecurity Framework | Offers a flexible approach to managing cyber risks. | Provides guidance on identifying, protecting, detecting, responding, and recovering from cyber threats. |
There are many more financial compliance regulations for these institutions, including the Digital Operational Resilience Act and the General Data Protection Regulation. Non-compliance with these regulations can lead to penalties for companies.
Common Challenges of Managing Cybersecurity Regulations for Financial Institutions
Financial services companies face many challenges in ensuring both cybersecurity and compliance with financial data security regulations. Check the main challenges they face:
| Challenge | Description | Problem |
|---|---|---|
| Overlapping and Conflicting Regulations | Each regulation has its own set of rules. | It’s hard to follow both at the same time without duplicating tasks or making mistakes. |
| Complex Reporting and Data Rules | Different regulations require different ways of testing, reporting, and storing data. | Having so many different requirements can cause confusion and add to the workload of staff. |
| Disruptions from Security Measures | Implementing security tools (like encryption and firewalls) can interrupt regular business operations. | This can cause downtime and put extra pressure on staff, affecting productivity. |
| Managing Access Control in Multiple Environments | Institutions use a mix of cloud and hybrid systems to store data. | It’s hard to keep data safe across all systems without slowing down operations. |
| Tracking and Auditing User Activity | Many rules require real-time tracking of user actions. | This adds extra work for IT teams because auditing is important but can take up a lot of time. |
| Enforcing Strong Security Models | Institutions need to apply strong security measures like least-privilege and zero-trust across all systems. | Applying these models to both old and new systems is tricky and needs constant checking to avoid gaps. |
Creating a proactive cybersecurity strategy and investing in the right tool will help to overcome these challenges of meeting all financial cybersecurity regulations.
Key Features to Look for in a Cybersecurity Tool for Financial Institutions
When choosing a solution to enhance data security and compliance, select tools that address the unique challenges of the financial services industry. The right tool simplifies compliance and strengthens your organization’s cybersecurity.
When you choose a tool, ensure it provides these specifications:
Centralized Access Management
Ensure the solution makes it:
- Easy to manage secure access across different systems.
- Simplifies access control for databases, servers, and cloud platforms.
Real-Time Auditing and Monitoring
Choose a solution that:
- Tracks user activities in real-time for compliance.
- Provides detailed tracking to meet logging requirements.
Granular Access Control
Choose a solution that:
- Enforces strict access limits.
- Uses least-privilege and zero-trust models to limit access.
- Ensures only authorized people can access sensitive data.
Automation of Compliance Tasks
Ensure the solution:
- Automates actions like reporting, vulnerability scanning, and compliance checks.
- Reduces manual work and errors.
- Ensures a consistent and reliable compliance process.
Scalability and Flexibility
Choose a solution that can:
- Scale with your business needs and adapt to changes.
- Seamlessly works with changing regulations.
How Fidelis Elevate® Can Help You Stay Compliant and Secure
Financial institutions need the right security tool to maintain cybersecurity and stay compliant with regulations. Fidelis Elevate®, a top XDR platform, is the perfect solution! How?
This all-in-one security platform offers complete cybersecurity protection for the financial sector, eliminating any vulnerabilities to attackers.
It integrates three powerful tools into a single platform:
- Fidelis Network®: Provides deep visibility into network traffic, identifying threats wherever they may hide.
- Fidelis Endpoint®: Secures endpoints, ensuring that data remains protected across all user devices.
- Fidelis Deception®: Employs deception tactics to confuse attackers, adding extra layers of protection.
It protects across:
- Networks
- Endpoints
- DLP
- Active Directory
In addition, it provides advanced deception technology, ensuring digital operational resilience and compliance with regulations.
This lets you monitor and secure data across different platforms to ensure your systems stay resilient against evolving threats.
Explore how Fidelis Elevate® helps organizations:
- Gain real-time visibility into your entire environment
- Prioritize critical assets with dynamic cyber terrain mapping
- Detect threats faster with risk analysis and decoy creation
Key Capabilities of Fidelis Elevate® to Meet Compliance Needs
- Comprehensive Threat Detection
Uses AI to spot risks early, before they become major issues. It also uses the MITRE ATT&CK framework to track known attack methods, helping teams respond to threats faster.
- Visibility into Data in Motion
Helps monitor sensitive customer data as it moves through your network. The platform offers Deep Session Inspection™ for better visibility of data helping detect data loss or unauthorized access before it leads to serious issues.
- Active Defense with Integrated Deception
Its deception features mislead attackers with decoys and breadcrumbs, keeping them away from real assets and helping companies stay ahead of threats. And it’s particularly useful for countering sophisticated threats.
- Real-Time Auditing and Forensics
It offers real-time monitoring of user activity as well as detailed forensics to track all actions. This helps financial institutions meet reporting requirements under specific regulations. The platform ensures that logs and audits are ready for compliance checks.
Addressing Key Challenges for Financial Institutions
Here is how Fidelis Elevate® helps financial institutions tackle common cybersecurity challenges while maintaining compliance:
- 1. Real-Time Auditing and Forensics
- Simplifies secure access to both on-premises and network systems.
- Gives you centralized control over all security aspects.
- Ensures compliance with data protection regulations by keeping security consistent across all systems.
- 2. Scalability
- Scales with your financial organization, adapting to meet new needs.
- Offers greater flexibility, ensuring your security solution stays effective as compliance needs change.
- 3. Efficient Incident Response
- Detects attacks 9x faster than traditional methods, by enabling a quick and efficient response to incidents, reducing the time your systems are vulnerable.
Fidelis protects your financial institution’s data and stops attackers even before they can cause harm, keeping your data and reputation safe.
In conclusion
Financial institutions need a robust and proactive approach to protect sensitive data and stay compliant with evolving cybersecurity regulations since they deal with highly confidential data and deal with money. Fidelis Elevate® is indeed a lifesaver for these institutions that combines endpoint, network, Active Directory and overall data security with a single platform. So, ensure holistic IT security for banks and other financial institutions by efficiently following all regulations, while maintaining your customers’ trust!
Frequently Ask Questions
Why is cybersecurity so important for financial institutions?
Financial institutions hold sensitive and private data, making them top targets for cyberattacks. Hence, protecting data is essential to avoid breaches that can damage reputation, lead to legal consequences, or cause financial losses. A strong cybersecurity plan, combined with regulatory compliance, ensures data is secure and builds trust with customers.
What are some common challenges financial institutions face with cybersecurity regulations?
The main challenges financial institutions face with regulations are:
- Regulations can overlap or conflict, making compliance harder.
- Complex reporting requirements increase the workload.
- Security measures like encryption and firewalls may disrupt normal operations.
- Managing access across network and on-premises systems can be tricky.
- Tracking user activity for compliance takes a lot of time and resources.
How can Fidelis Elevate® help financial institutions stay compliant with cybersecurity regulations?
Fidelis Elevate® is an all-in-one security platform that addresses multiple cybersecurity challenges. It covers protection across, endpoints, networks, DLP, and AD. Additionally, the platform uses deception technology to lure and trap attackers and protect sensitive data.
It offers:
- Real-time auditing
- Centralized access management, and
- Advanced threat detection to ensure compliance for financial institutions.
What are the key features to look for in a compliance tool for financial institutions?
A tool that,
- Simplifies security across different systems.
- Tracks user activity to ensure compliance.
- Enforces strict access limits with least-privilege and zero-trust models.
- Reduces manual work and errors in tasks like reporting and vulnerability scanning.
- Adapts to business needs and changes in cybersecurity regulations.
