Cybersecurity Maturity Guide for Banks: How to Advance Beyond Baseline Levels

Banks have become major targets for cyberattacks: financial firms account for 20% of losses caused by cybercrime. This trend has been escalating, as the financial sector is one of the most lucrative targets for hackers due to the valuable data and funds they possess. In response to this growing threat, many banks want to improve their cybersecurity maturity and stay off the “recent cyberattacks list.”

If you want to offer better security to your clients and protect your reputation, this guide will provide insights on how banks can advance their cybersecurity maturity.

Is Your Bank Really a Target?

In the end, a cybercriminal’s goal is money, so why not go straight to the source? Banks have to balance sensitive data, uneducated customers, multiple vendors, and ever-evolving vulnerabilities. Hackers also tend to go after large amounts of data, which makes banks a prime target with their extensive customer database and financial records.

But it’s not just about the money. In recent years, there has been an increase in cyberattacks aimed at disrupting operations and causing chaos for banks. These attacks not only cause financial losses but also damage the bank’s reputation and cause major disruptions for millions of customers.

What Are the Different Levels of Cybersecurity Maturity?

Before we dive into ways to improve cybersecurity in banks, it’s important to understand the different levels of cybersecurity maturity.

• Baseline Level: At this level, organizations have basic security measures in place such as firewalls and antivirus software. However, these measures may not be regularly updated or monitored effectively.
• Managed Level: Organizations at this level have a structured approach towards managing cyber risks. They have established policies and procedures for incident response, regular vulnerability assessments, and employee training.
• Advanced Level: Organizations at this level have strong security measures in place with continuous monitoring and improvement. They also have a well-defined incident response plan and conduct frequent penetration testing to identify vulnerabilities.
• Optimized Level: At the highest level of maturity, organizations are constantly evaluating and updating their cybersecurity strategies to stay ahead of emerging threats. They have advanced threat detection systems in place and regularly test their incident response plans through simulated attacks.

What Is Your Current Cybersecurity Maturity Level?

The FFIEC Cybersecurity Assessment Tool (CAT) is a comprehensive risk assessment tool provided by the Federal Financial Institutions Examination Council. It consists of approximately 400 lines designed to help banks evaluate their cybersecurity posture.

The worksheet is structured to guide financial institutions in performing a thorough self-assessment, identifying existing controls such as policies, procedures, and technical safeguards like antivirus measures or firewalls.

How to Fill Out the FFIEC Worksheet

Banks can complete the FFIEC Cybersecurity Assessment Tool by following a structured approach:

1. Initial Information Gathering: Begin by gathering data on your current cybersecurity controls, including policies, procedures, and existing measures like firewalls and antivirus software.
2. Self-Assessment: Utilize the worksheet to perform a self-assessment. This process involves answering detailed questions about your institution’s cybersecurity practices and controls.
3. Identify Gaps: By closely following the assessment tool, banks can identify areas where current practices fall short of industry standards or regulatory expectations.
4. Document Findings: Ensure that all findings and identified gaps are well-documented along with any planned corrective actions.

Do You Need to Do This If You’re a Small Bank?

The FFIEC Cybersecurity Assessment Tool is particularly crucial for smaller banks, many of which may not have conducted a comprehensive risk assessment yet. Smaller banks often operate with limited resources and may lack specialized cybersecurity expertise.

The CAT provides a standardized framework that helps these institutions identify vulnerabilities and build stronger defenses, reducing the likelihood of a successful cyberattack.

Process and Maintenance

• Initial Completion: For first-time users, completing the FFIEC Cybersecurity Assessment Tool generally takes about a day. This involves assembling a team, gathering necessary data, and filling out the worksheet.
• Annual Review and Updates: To ensure ongoing cybersecurity resilience, it is recommended that banks review and update their assessment annually. This allows institutions to incorporate any new controls, reflect changes in the threat landscape, and ensure that their cybersecurity measures remain effective.

Utilizing the FFIEC Cybersecurity Assessment Tool helps banks, especially smaller ones, develop a robust cybersecurity framework that can withstand increasing cyber threats. Regular updates to this assessment will keep banks well-prepared to face emerging risks and safeguard their institutions against cyberattacks.

How Can Banks Advance Beyond Baseline Levels of Cybersecurity Maturity?

While some recommendations suggest that banks remain at the baseline level for the sake of easier compliance with requirements, striving for higher maturity levels can offer significantly enhanced security. Here are several key strategies banks can implement to advance their cybersecurity maturity:

1. Enhanced Antivirus and Firewalls: Regular updates and robust configurations are essential. Ensure that both antivirus solutions and firewalls are actively monitored and managed to defend against known threats effectively.
2. Comprehensive Reporting Mechanisms: Establishing detailed and automated reporting systems helps in tracking security events and incidents efficiently. This data can be instrumental in shaping future cybersecurity strategies.
3. Advanced Threat Detection Systems: Leveraging cybersecurity tools like RESULTS Technology’s INVICTA can help banks monitor for threats in real-time with machine learning and AI capabilities. INVICTA’s advanced threat detection methods can significantly reduce the response time to potential security breaches.
4. Multi-Factor Authentication (MFA): Implementing MFA adds an extra layer of security by requiring multiple forms of verification. This makes it more challenging for unauthorized users to gain access to sensitive systems and data.
5. Enhanced Risk Management: Regular risk assessments and dynamic risk management practices help in identifying potential vulnerabilities and adjusting defenses accordingly. This proactive approach ensures that banks can stay ahead of new and evolving threats.
6. Data Protection Measures: Banks should invest in data encryption, secure data storage solutions, and stringent access control measures to protect sensitive customer and financial data from cyber threats.
7. Regular Audits and Assessments: Frequent internal and external audits, along with comprehensive assessments, can reveal gaps in existing cybersecurity measures. This enables banks to address weaknesses promptly and improve their overall security posture.

By incorporating these strategies, banks can significantly enhance their cybersecurity maturity and better protect against the uptick in bank-focused cyberattacks.

What Challenges Should You Keep in Mind While Improving Your Cybersecurity Maturity?

One of the primary challenges banks face when improving their cybersecurity maturity is the identification and update of existing written policies. Many institutions have legacy policies that may not align with current best practices or regulatory requirements.

The process of reviewing, updating, and implementing these policies can be resource-intensive and time-consuming.

Furthermore, ensuring that all personnel are aware of and trained on updated policies adds another layer of complexity. Effective communication and regular training are essential to ensure that updated policies are understood and adhered to by all employees.

Identifying Gaps

Detecting gaps in cybersecurity measures is another significant hurdle. Comprehensive risk assessments, such as those offered by the FFIEC Cybersecurity Assessment Tool, can help identify vulnerabilities.

However, these assessments require meticulous data gathering and analysis, which can be challenging for banks with limited resources. Moreover, gaps might not only exist in technical safeguards but also in human factors such as employee awareness and training. Continual assessment and monitoring are crucial to identify and address these gaps promptly.

Advancing Maturity Without Increasing IT Budget

Advancing cybersecurity maturity often requires substantial investment, which can be a significant challenge for banks operating with a constrained IT budget. Many of the advanced tools and technologies needed to enhance cybersecurity, such as AI-driven threat detection systems and comprehensive monitoring solutions, come with high costs.

Additionally, hiring or training personnel to manage these advanced systems can further strain financial resources. Banks need to balance their budget with the critical need for robust cybersecurity measures, often seeking cost-effective solutions or prioritizing investments that offer the most significant impact on their security posture.

Upgrade Your Bank Security with RESULTS Technology

Financial institutions need an IT provider who understands the unique challenges they face in protecting sensitive data and maintaining regulatory compliance. RESULTS Technology is a top-tier provider of IT solutions for banks, offering enhanced security measures such as advanced threat detection and comprehensive risk assessments.

Schedule an IT risk assessment today and find out how we can help improve your cybersecurity!