The financial services industry remains a primary target for attackers, second only to healthcare in reported incidents. In 2023, financial institutions reported 606 more security incidents than in 2020. This surge highlights a critical need for identity security solutions which are tailored to defend financial resources and users Banks, insurance firms, and investment companies alike need to take a proactive approach with identity security to secure their environments from compromise.
The common challenges that financial organizations encounter include:
- Complex User Management: Financial services manage diverse user types, from privileged and standard accounts to automated service accounts. The lack of the proper resources allocated often hampers the ability to have end-to-end visibility into these users’ activities, leaving potential blind spots for attackers.
- Regulatory Compliance: Financial entities are subject to rigorous and evolving regulations, which require continuous compliance checks to avoid legal repercussions.
- Legacy Infrastructure: Many financial firms rely on legacy systems, which don’t support modern security controls and flexibility to integrate modern identity solutions, posing efficiency challenges in cybersecurity efforts.
Identity Security: The Core Defense Strategy
In recent years, identity security has emerged as a critical component of a comprehensive security strategy. By implementing strong identity security controls, financial institutions will be able to complement any legacy security measures, while addressing today’s cyber threats head on. To ensure the security of financial resources effectively, this guide discusses key strategies, the importance of compliance, and critical access management practices.
The Identity Security Landscape
Identity security challenges in financial services underscore the industry’s urgency to adopt comprehensive measures:
- Data Breaches: 78% of financial organizations have faced identity-related breaches, and only 2.4% report full visibility into service accounts.
- Legacy Limitations: Approximately 68% still operate legacy systems that don’t support the integration of modern identity security tools.
- Insufficient Access Control: Only 32% of firms possess unified privileged access management (PAM) across their on-prem and cloud assets, creating vulnerabilities in hybrid environments.
These statistics highlight the pressing need for investing in an identity-focused security solution to protect financial institutions from unauthorized access, mitigate risks, and maintain compliance.
Key Elements of Identity Security
- Real-Time Visibility: Achieving end-to-end visibility into identity activities across resources is foundational. Tools like Silverfort provide centralized monitoring, covering every user interaction and authentication attempt across hybrid cloud and on-premises systems.
- Proactive Threat Detection: Organizations need to have the ability to analyze each authentication event, identifying malicious intent in real time. Silverfort’s ITDR extends across service accounts, legacy resources, and cloud applications, addressing blind spots in identity-based defenses.
- Advanced Access Control: Managing access with a Zero Trust approach, financial institutions can ensure only authenticated, verified users interact with critical systems. By integrating MFA protection, privileged access management, and role-based access controls (RBAC) further minimizes unauthorized entry and lateral movement risks.
Ensuring Compliance and Audit Readiness
Financial services must align with stringent regulatory standards, such as:
- DORA (Digital Operational Resilience Act): Enforcing IT resilience measures, DORA mandates operational standards across all financial institutions’ ICT systems. Full compliance with DORA will become mandatory in 2025, underscoring the importance of resilient infrastructure.
- NY DFS Cybersecurity Regulations: Section 500.12 mandates the implementation of MFA for secure access. Financial entities must apply MFA to privileged accounts, reducing the risk of unauthorized access across all endpoints.
- PCI DSS 4.0 (Payment Card Industry Data Security Standard): This updated standard emphasizes a proactive approach to securing payment environments by mandating robust access controls, including Multi-Factor Authentication (MFA) for all non-console administrative access and remote access to cardholder data environments.
The penalties for non-compliance are significant, with potential financial and legal repercussions. Proactively investing in identity security not only protects against data breaches but also fortifies audit readiness by ensuring continuous monitoring and comprehensive access logging.
Identity Threats and Access Management
Advanced threat actors exploit identity vulnerabilities by targeting weak or outdated access points. Effective access management should include:
- MFA and Privileged Access Security: Financial institutions are recommended to deploy MFA and privileged access security to protect all privileged accounts. Solution like Silverfort who offer the ability to extend MFA across legacy applications and command-line access can help solve the blind spots in organizations environments.
- Identity Segmentation: Silverfort’s segmentation capabilities limit internal movement, isolating compromised accounts to contain threats and minimize potential lateral movement. This segmentation aligns with Zero Trust principles by enforcing identity-based access restrictions.
- Continuous Risk Monitoring: Employing automated risk indicators and behavioral analysis, Silverfort provides insights into identity health. Alerts for anomalies, shadow admins, and excessive privileges enable timely remediation and protection against evolving identity threats.
Securing Financial Futures with Identity Security
Identity security is not a static requirement; it’s a dynamic, strategic investment to mitigate emerging threats in the identity attack landscape. The financial services industry must continually evaluate its security architecture, identify areas for improvement, and implement adaptive solutions capable of responding to the latest threats. Comprehensive identity security—like Silverfort’s-ensures financial institutions can proactively secure their critical infrastructure while navigating complex regulatory requirements and minimizing risks.
Explore how Silverfort can help protect your financial infrastructure across legacy systems, service accounts, and hybrid environments. Discover the benefits of automated visibility, real-time threat detection, and strong access policies with Silverfort. Book a demo today to secure your organization’s identity landscape with confidence.