The risk of cyberattacks against banks in the United States and abroad is growing by the minute, practically. Cyberattacks cost financial services more than any other industry with an $18 million price tag per firm. Financial services firms are also targeted more than any other industry and the sophistication of these attacks is making it harder to stay protected moving forward.
In fact, cybercrime groups are coming out in full force, aiming their efforts of distributed-denial-of-service (DDoS) attacks against major banks, including Bank of America and JPMorgan Chase & Co. These sophisticated and highly orchestrated attacks are putting banks back on their heels in not only cleaning up the mess following an attack but in understanding how to protect themselves more diligently moving forward.
DDoS Attacks: A New Level of Cyber Crime
A DDoS attack is a malicious attempt to disrupt the normal traffic flow of a server or network by overwhelming the target with a flood of web traffic. DDoS attacks utilize multiple compromised computer systems as sources of attack traffic and exploited machines can include computers and other IoT devices, such as phones and tablets.
DDoS attacks are becoming increasingly dangerous for banks and financial service providers because of the heavy dependence that consumers have on the availability of IT. Consumers want to know that their bank is reaching for complete 100 percent cyber safety with 24/7 services running. What’s more, having available interaction and real-time information are heavily sought after.
DDoS attacks are becoming more persistent. These malicious attacks can make banking websites unavailable, which can result in lost revenues, reputation damage, and a loss in overall consumer confidence. If fraud is the major intention, a financial agency may also experience capital risks.
Protecting Against Attacks
Protection against DDoS attacks has been available for some time now, but many traditional coverage options aren’t able to hold up to the newer attacks. Even if a service is down for 10 to 15 minutes, an attack can impact the company’s services before things get mitigated.
An effective type of mitigation against DDoS attacks is known as a clean pipe service, which reroutes traffic via external, cloud-based protection service. This service uses AI to filter out malicious traffic such as large-scale DDoS attacks.
Another way DDoS, or cyber-attacks in general, are covered against is through cyber liability insurance, which provides comprehensive coverage for banks and financial institutions that want to their integrity upheld following an attack. This kind of cyber liability insurance can help to not only pick up the financial pieces following an attack but help to find solutions moving forward so these types of attacks don’t happen again or don’t make as much of an impact.
It’s becoming more and more clear that banks need to take more precautions to keep their information and their customers’ information safe. Through education, awareness, and the right kind of cyber liability insurance, having a multi-pronged approach will help stay ahead of possible issues with cybercriminals heading into a new decade.
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.