Financial applications allow us to access various financial services like managing our budgets, paying for things, taking online loans, investing, etc.
But with all this sensitive information in one place, one may wonder — how easy can it be for fraudsters to break app security?
Of course, the cybersecurity level is rising, but the hacking methods are also getting more advanced. That’s why it’s important for every user to familiarize themselves with the most common risks and issues and protect their personal info and funds to the maximum.
The High Stakes Of Data Breaches
As we continue to reap the benefits of the digital age, we are getting used to relying on technology to collect, analyze, and store data.
This frees up a lot of resources and allows us to operate huge amounts of information, but it comes with a price.
The number of cyber crimes, most of which include data breakage, is spiraling — the costliest of them are happening in the healthcare sector, with the financial field coming as a close second.
There were a few high-profile cases of breaches recently like the Cam4 data breach in 2020 that disclosed over 10 billion records or the Yahoo breach in 2013 when up to 3 billion accounts were exposed.
Some of the cases included theft of biometric data that can be used by scammers to receive social aid and bank services.
The two most common problems associated with data leakage are DDoS attacks and API vulnerabilities.
Distributed Denial of Service attacks generate spam traffic to Internet services to disrupt their operation, serving as a smokescreen for data theft. API vulnerabilities can grant scammers unauthorized access to data, enabling its manipulation and theft.
Passwords Are The Weakest Link
Although by this time we’ve heard a lot about cyber fraud and the importance of using the right credentials, passwords are still the weakest link in the security measures.
A lot of people use their names, birthdays, and simple combinations like “qwerty1234.” These passwords are a no-brainer to hack using methods like dictionary attacks when the specialized software tries out every word of the dictionary to guess the password; brute force attacks when every possible symbol combination is tested; and credential stuffing when a few services can be hacked simultaneously because the user utilizes the same set of credentials.
Two main regulations are in place to ensure the security of passwords — the NIST (National Institute of Standards and Technology) Cybersecurity Framework applicable for U.S. software and ISO 27001, which is used internationally.
They contain a few common rules that registration forms should follow as to not allow the user to utilize the easiest passwords:
- The password length should be from 8 to 64 characters.
- Alphabetic, numerical, and special characters should be allowed and used.
- Using repeated and sequential characters is not allowed.
- Information that can be easily guessed shouldn’t be used for the passwords.
By using strong passwords, you can protect your personal and business data from hacking and data leakage. And since there are a lot of tools nowadays that securely store your credentials, you don’t have to worry about forgetting them.
Cybersecurity Guardians of Your Corporate Vault
In the case of large businesses and international corporations, investing in cybersecurity is a must.
There are a number of risks every organization carries that can have financial, operational, and reputational outcomes. Some of them include:
- Phishing, which is one of the most commonly reported cyber crimes, can lead to revealing sensitive information or installing malware.
- Ransomware — blocking the whole data system and asking for a ransom to unblock it.
- Installing malware, often preceded by phishing emails, can lead to stealing and deleting data.
Insider threats that often come from fired or disgruntled employees or business partners, etc.
These risks can only be avoided by investing in stable, secure financial operations software and implementing cybersecurity measures.
Regular assessment of risks and strong data and password policies are essential. Additionally, you can engage a team of cyber experts to stay ahead of threats and minimize risks in the future.
Best Practices To Reinforce Your Digital Fort Knox
The majority of the mentioned threats can be avoided or mitigated by taking the needed security measures, including both software tools and organization policies.
The crucial security strategy is using two-factor authentication for all sensitive data and accounts within the business.
As for the policies — it’s important to educate the employees on the possible risks and their management, as well as use of proactive threat detection and rapid response measures. All the employees working with data should learn how to use the following tools.
Web Application Firewalls (WAFs)
Firewalls are probably the oldest method of cyber protection that has been in use for over 25 years. They basically shield the organization’s computers or network from unwanted traffic that can include malware by scanning all the incoming data and blocking the suspicious parts.
Multi-Factor Authentication (MFA)
MFA requires a few types of verification for the user to log in or get access to something. Usually, it includes some credentials like passwords, generated code on their device/text/email, and biometric data like Face ID. It provides a high level of protection, making the accounts difficult to hack.
Data Protection and Encryption
Data encryption is usually applied among the employees with the highest access level. The sensitive data is being protected by encrypting, which turns it into an unreadable set of characters. It can be only unlocked by using a special decryption key.
Input Validation and Sanitization
Input sanitization and validation are used to “clean” the input data and remove the potential harmful vulnerabilities. The special program reviews the information for such issues and checks if it meets the required criteria.
Wrapping It Up
Financial services are the second most targeted type of software after healthcare apps. They are prone to different cyberattacks like DDoS, phishing, malware, ransomware, etc.
It makes it essential for businesses of every size and industry to know how to protect their operation and employees against such threats.
A few of the things that can be done to avoid cyber risks are educating the company’s staff on the security protocols, password rules, and data policies.
For larger corporations, it might be best to bring in cybersecurity experts to protect the business operation and uninterrupted workflow.
