The International Organization of Securities Commissions released a report last week that explained that as cyber crime becomes more sophisticated, it is more difficult for financial institutions to defend against it. Hackers’ main goals are usually to damage public websites and online services, but they have yet to dismantle “the backbone” at financial exchanges, which include critical systems and trading platforms.
To further prepare banks and similar organizations, the Securities Industry and Financial Markets Association staged a drill last week called “Quantum Dawn 2.” It was designed to see the crisis response plans of some of Wall Street’s largest banks. Dubbed a success, participants worked in their individual offices and communicated through email, phone and other platforms, according to AmericanBanker.
Jeff McGurk, a manager of cyber security at AccessData Professional Services, told the news source that institutions must go beyond just what was on this one test. According to McGurk, collaboration, critical thinking and reaction times are important, but just because a bank passed this one test does not mean that it is untouchable.
“By no means is it the definitive answer,” McGurk said. “After they complete this exercise and say yes, they passed, they can’t just sit back and say it’s good enough. It’s just one small piece of a much bigger picture.”
Part of that picture must include fraud prevention software. As the Quantum Dawn testing proved, it is important for financial institutions to properly train all employees to prepare for a cyber attack. However, a multifaceted security plan will have the best chance of securing customer data and the organization’s sensitive information.
Fraud strategy management is crucial for banks of all sizes to remain profitable, and it is more essential as the internet becomes a more common tool for financial institutions.