Canadian banks

Collaboration: The key for Canadian Banks to Combat Cybersecurity

By Don Duncan, Director of Business Development for NuData Security

When banks were islands

The cyber threat environment for Canadian banks is rapidly changing. Cybercriminals are increasingly using sophisticated automation and other techniques to impersonate legitimate usage; circumventing what was thought to be high secure authentication.

By analyzing these threats, companies can prevent a potential future attack. However, this information often stays within the four walls of the institution which found it. This lack of cross-company data sharing is forcing some financial institutions (FIs) to reinvent the wheel to prevent already-known attacks.

Research from NuData Security shows that account takeover attacks increased tenfold in 2017. Out of those attacks, 99% were automated, proving that scripted attacks are rapidly growing in type and sophistication.

In a landscape where account takeover and sophisticated automated attacks are growing exponentially, learning from other companies’ attacks becomes an invaluable weapon.

Time to talk to the neighbors

Online bank robbery has taken on a whole new meaning with cybercrime, and it is this online epidemic that is forcing banks to take action.

We all know that change in the financial industry is constant, but it is happening faster with the adoption of financial technologies, and this can also open the door to potential risks. PwC has published a report where they have analyzed how financial institutions are innovating to provide more services while reducing risk.

Based on the report, collaboration among financial institutions it starting to happen, and this allows Canadian banks to align themselves with the changes the industry is facing locally and globally. With an eye to Europe and the adoption of GDPR by the European Union, Canadian banks are also anticipating and preparing for the changes that are coming.

According to the PwC report, 93% of banking and capital markets’ CEOs say that they are investing in cybersecurity. The report also reveals that 52% of executives in the Canadian financial services sector believe that cybercrime is likely to be the most disruptive economic crime of the next 24 months.

The quest to end account takeover, the most devastating form of fraud today, is driving the industry to new technologies that can intelligently secure platforms without adding friction.

Evolving Solutions

New technologies like behavioral biometrics passively monitor the actions of users before and throughout a session to determine if the interaction is with the legitimate user or an unauthorized machine. These technologies are now becoming mainstream to help financial institutions reduce risk while identifying good customers versus imposters.

A layered defense that includes passive biometrics and behavioral analytics can review multiple parameters of the user’s behavioral interaction such as how the user holds a device, how hard a user hits the keys, and hundreds of other identifiers. These multiple layers validate the user based on inherent behavior that bad actors can’t replicate, securing the good user’s transaction throughout the process. It also allows FIs to provide a premium experience to good customers.

 

Collaboration is Key

Collaboration both within a financial organization and with other outside entities will enable Canadian institutions to rapidly identify emerging threats, find security solutions, and apply best practices to build out cyber risk agility and resilience.

This cornerstone of collaboration is going to open the doors to innovation, new services, and increased customer satisfaction. Those banks that will be able to positively identify good customers online will be able to pass through special benefits while securing their brand.

Related to this post: Cash It or Trash It: The Millennial Banking Mantra

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