By: Jack Peters, Customer Solutions Architect, M247
Cloud adoption is showing no signs of slowing down. Research found that the majority (95%) of European businesses are finding value in the cloud, and more than one in three say they intend to have more than half their workloads on cloud-powered applications and software.
However, cloud computing environments are not immune to security threats and for banks and financial institutions, their concern towards cybersecurity is growing. According to Bank Director’s 2023 Risk Survey, 83% of banking leaders said that their cybersecurity concerns have increased in the past year and apply this to a cloud environment, these concerns become even more pressing.
With financial institutions 300% more likely to encounter security incidents than other industries, cyber criminals utilise to gain access to their targets in this sector. From ransomware, which can cripple core systems for extended periods of time, to Distributed Denial of Service (DDoS) attacks which can disrupt key services and cause enormous financial losses and damaged customer trust. We saw this in 2020 when the New Zealand Stock Exchange had to shut down their operations following an extended DDoS attack on a network provider.
Additionally, Banks and other associated financial institutions must grapple with regulatory compliance when it comes to their cloud computing infrastructure. The industry is one of the most heavily regulated sectors in the world and they must comply with various privacy legislation such as GPDR or PCI DSS or face the threat of hefty fines and penalties. As a result, there are roadblocks in their ability to easily migrate their systems to the cloud as well as relying on outsourced support for cloud environments. As with any third-party service, banks that use the cloud relinquish control over their operational, security and privacy systems, and given the scrutiny of regulatory approval, this has the potential to be a major security concern.
For banks and other financial institutions that are looking to take advantage of the benefits found within cloud computing, it’s crucial that they do not take any shortcuts in their cloud adoption strategy. To ensure they are continuously protected, banks can implement robust security measures such as intrusion detection/prevention software and secure encrypted data storage frameworks. Additionally, organisations can partner with vetted and trustworthy cloud security partners, whose expertise and dedicated support can help them to develop and implement a comprehensive strategy for their cybersecurity.
