Cybersecurity has increasingly become one of the most important parts of business operations today. For banks and financial institutions, this may even be the most important part of how they operate on a daily basis. Companies have started to boost their focus on protecting their digital assets and landscapes by investing in insurance for banks, such as cyber liability insurance, as well as training employees and executives around being safer with sensitive data.
All this comes at a time when cyberattacks against banks are becoming more sophisticated and more frequent.
To get ahead of these attacks, banks can do more than just look into insurance for banks, which is a great first step. One thing to do is to look at some of the common misconceptions around cybersecurity in the banking world and look at the importance of dealing with cyberattacks in an informed way.
Here’s a look at some major myths about cybersecurity in banking:
Misconception #1: It’s All Up to IT
Banks are right to hire a fully fleshed-out IT staff to take care of the daily goings-on of all things tech and cybersecurity. But stopping there is mistake number one. Data breaches and cyberattacks affect the entire company and its clients and customers, not just one department or area of the company. When cyberattacks happen, it shouldn’t just be up to the IT department and the heads of that section.
Misconception #2: Smaller Banks Aren’t Targets
While major cyberattacks have hit big banks like Wells Fargo and Bank of America in recent years, smaller banks aren’t immune to being hit as well. Banks with less than $1 billion in assets make up about half of all bank-related cyberattacks and institutions with less than $35 million in revenue make up about 80 percent of hacking and malware breaches.
Misconception #3: A Strong Password is All I Need
Yes, having a good solid password that only you know if helpful in a way, but it’s not an airtight plan when it comes to stopping hackers. There are multiple types of two-step verifications out there, but the most secure is when a website requires a unique code generated every time you log in to a network. Find a password manager to encrypt any and all password information for employees to keep hackers at bay.
Misconception #4: Cybersecurity Is Too Expensive
While some cybersecurity measures may take up room in your overall budget, it’s no match for the cost of having to clean up after a breach that drains your assets altogether. The same goes for insurance for banks. Cybersecurity insurance for financial institutions, such as through Financial Guaranty Insurance Brokers, should be apart of a bank’s financial outline if it isn’t already. The financial mess–not to mention the loss of trust among customers–following a data breach could be detrimental to a bank’s entire business, so investing in cybersecurity technology as well as insurance for banks should be taken care of early.
About Financial Guaranty Insurance Brokers
Since 1983, Financial Guaranty Insurance Brokers has distinguished itself as a provider of Professional Liability, Cyber Liability, and Crime insurance products for entities of all types. To receive timely, personalized service from a knowledgeable and experienced staff, call us today at (626) 793-3330 to speak with one of our professionals.