Welcome!

Agile Computing Authors: Liz McMillan, Elizabeth White, Pat Romanski, Roger Strukhoff, Darren Anstee

News Feed Item

Booz Allen Announces Top 10 Financial Services Cyber Risk Trends for 2013

Ask any customer what they expect from their bank or financial services firm today, and two words come through loudly and clearly: security and privacy. Commercial and institutional customers have come to expect seamless service, properly cleared transactions and fast, accurate information. But news about major cybersecurity breaches has alarmed consumers, causing banks to redouble their efforts to protect their technology infrastructure. This means the stakes have never been higher for banks and financial services firms, and there are clear trends for cyber risk and security protection in the financial services industry in 2013, according to the experts at Booz Allen Hamilton.

“When we think about the lethal daily threats to the globally integrated financial services industry from nation-states and individuals, it is imperative that Chief Information Security Officers begin looking around corners, talk with each other and better prioritize the real threats to their firms,” said Mike McConnell, Booz Allen vice chairman and former Director of National Intelligence. “Self-evaluation and industry-wide conversations are the new ‘rules of the road’ to creating successful, integrated cyber defenses. The CISO can really drive organization-wide change while still championing efficiency and customer service.”

McConnell is speaking today at Bloomberg’s Enterprise Risk Conference (more information) where he will discuss the financial services industry’s responses to state-based and state-sponsored cyber attacks. He added, “There are many cyber trends – including the sophistication and lethality of the attacks – that the financial industry should be aware of. Even though it is difficult to look into a crystal ball and predict the future, these events are happening now and could cause significant reputational, financial and infrastructure damage to any ill-prepared firm. Individual companies should not wait for legislation or an Executive Order to come together with their government counterparts to find dynamic solutions to these big issues.”

Booz Allen works with financial services firms to identify and benchmark best practices and challenges for long-term cybersecurity prevention and protection. This process is part of Booz Allen’s Cyber M3 (Measure, Manage, Mature) capability, which evaluates the maturity of a firm’s cybersecurity programs. Both Cyber M3 and the benchmarking program incorporate technology, business process engineering, human capital development and risk management in developing a comprehensive picture of a firm’s and industry’s cyber readiness.

The Top 10 Financial Services Cybersecurity Trends for 2013:

  1. Business/Information Risk protection is not Just a Technology IssueSpending on new technology alone is not enough to protect a firm’s information and business. Firms must also invest in people and in fine-tuning processes to ensure, not only the proper use of technology, but that the processes that require interfaces between organizations are well managed and executed flawlessly. No matter how good a technology is, if not used correctly by skilled employees who follow well-defined processes, vulnerabilities will surface that can be leveraged by both internal and external threat actors.
  2. Data disruption attacks may become data destruction attacks The potential of threat actors actually destroying data is a major concern among risk and security professionals. Over time, the financial services industry will face threats from extremist groups who, when denied access to weapons of mass destruction, will use cyber as a “weapon of mass disruption.” Additionally, threat actors who mean to disrupt a firm’s business operations to make a statement or prove what they consider a moral point will also utilize destruction of data to ensure they make an impact.
  3. Nation-states and threat actors are becoming more sophisticated We now have to face more sophisticated threat actors such as smaller nation-states and terrorist elements obtaining similar capabilities. The financial services industry must fully understand the entire threat landscape and what this means in terms of employing the right people, technology and processes to ensure business continuity and proper risk management.
  4. Legislation could push industry standards around cyber risks and improve threat intelligence information sharing Banks already share information, but they will need to do more in light of possible legislation to set standards for cyber protection. If Congress allows the sharing of important national security information, industry standards could become a benchmark requirement that firms must meet before they are given access to government information. Additionally, such legislation could help in reducing the valid fears of firms in sharing cyber incident information due to the threat of penalties and further regulation. The industry and government must acknowledge and treat firms as part of the nation’s critical infrastructure because a breach at anyone bank or firm can have severe, cascading effects on the nation’s stability.
  5. Predictive threat intelligence analytics will create a more effective risk management capabilityFinancial services firms must begin to employ a more predictive threat intelligence capability to determine who might be trying to attack them and how. Focusing on understanding their own individual business risks (as well as industry risks) and combating real potential threats that could focus on such risks is much more effective than trying to create a defense that could cover any possible threat.
  6. Vendor Risk Management is becoming an increasingly important concern among firms Most firms buy much of their information technology and services from suppliers. Therefore, these suppliers’ vulnerabilities become the vulnerabilities of the firms they provide products and services. Firms are becoming more focused on the security requirements for these suppliers and engaging independent third parties to evaluate the risks around such products and services.
  7. Cyber risk continues to be a board-level issue Information, legal documents, and communications with clients and employees are all becoming more and more electronic every day to include an even greater usage of mobile technologies and social media. The boards of financial institutions must create and embrace a culture that acknowledges the evolving risks and more openly shares incident information across the industry, with technology providers and with both law enforcement and the federal government.
  8. Firms must continue to embrace and adapt to the new “boundless network,” and must also invest in training its workforce to properly access and protect corporate data Cloud, social and mobile technologies, including “Bring Your Own Device” (BYOD), are simply too cost efficient and effective for institutions to ignore them. Security and risk professionals need to better integrate these technology trends, which will require they embrace the fact that the corporate network now has extended beyond their control. Risk management and mitigation is evolving to better control how corporate data travels these boundless networks and ensuring the education of their employees on the responsibilities they have in securing such data.
  9. Identity and Access Management is becoming a key security control area in which firms will continue to invest heavily The days of focusing solely on perimeter defense have long since passed. Phishing and other social engineering strategies employed by threat actors have been very effective in allowing them to penetrate almost any network. Banking institutions must assume these actors can get in. Ensuring proper identity of an authorized individual is a key area that is being addressed by all firms in all industries to address this new paradigm. Most threat actors employ a strategy to gain access to networks and information by gaining access to valid authorized credentials of a firm’s employee so that they can go undetected in their actions. Firms will continue to invest heavily in ensuring that an authorized user is actually an authorized user. Additionally, firms will invest more heavily in tracking unusual activity of a user to detect stolen credentials or an insider threat.
  10. The Financial Services industry will rely more heavily on cyber benchmarking The FS industry is investing more and more in protecting its information assets and wisely spending these scarce dollars is becoming increasingly important, not only from an effectiveness standpoint, but to also be able to articulate to business leaders, the value of such an investment. The FS industry, therefore, will continue to use industry benchmarks to understand how their competitors and suppliers are investing in people processes and technology for cyber risk management.

For 2012 Booz Allen issued its first annual list of cybersecurity trends for the financial services industry (read the 2012 list). Since then, the industry has experienced a number of high-profile attacks, such as the DDoS attacks on U.S. commercial banks and the New York Stock Exchange.

“In the span of one year, we have seen a significant shift in the frequency and sophistication of cyber attacks on financial services firms. This is perhaps the biggest trend of them all,” McConnell said.

ABOUT BOOZ ALLEN HAMILTON

Booz Allen Hamilton is a leading provider of management and technology consulting services to the U.S. government in defense, intelligence, and civil markets, and to major corporations, institutions, and not-for-profit organizations. Booz Allen combines deep technical knowledge with expertise in each client’s core mission to deliver proven results. Booz Allen is headquartered in McLean, Virginia, employs approximately 24,000 people, and had revenue of $5.86 billion for the 12 months ended March 31, 2012 (NYSE: BAH).

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, will compare the Jevons Paradox to modern-day enterprise IT, e...
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Is your aging software platform suffering from technical debt while the market changes and demands new solutions at a faster clip? It’s a bold move, but you might consider walking away from your core platform and starting fresh. ReadyTalk did exactly that. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue and over a decade of audio conferencing product development to start an innovati...
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
If you had a chance to enter on the ground level of the largest e-commerce market in the world – would you? China is the world’s most populated country with the second largest economy and the world’s fastest growing market. It is estimated that by 2018 the Chinese market will be reaching over $30 billion in gaming revenue alone. Admittedly for a foreign company, doing business in China can be challenging. Often changing laws, administrative regulations and the often inscrutable Chinese Interne...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...