Cybersecurity Risks for Investment Banks
Digitalization has made investment banking fast and convenient, but it has also encouraged a new category of crime to flourish. Cyberattacks are now the most significant threat that investment banks face. Device interconnectivity sets the stage for sophisticated large-scale thefts, and investment banks without adequate cybersecurity are especially vulnerable.
Why Is Cybersecurity Important for Investment Banks?
In the digital age, cybersecurity threats to investment banks are more relevant than ever. Because investment banking is such a high-profile service, it attracts sophisticated attacks during negotiations and mergers and acquisitions (M&A) transactions.
Reliable cybersecurity is essential for financial institutions. In addition to generating a profit for your clients, you must have an impressive and dynamic system to protect your customers and maintain a trustworthy reputation.
Top Cyber Threats for Investment Banks
Cyberattacks on investment banks go beyond stealing money. Many attacks revolve around collecting information on your payment management systems or VIP and high net worth clients. These attacks tend to revolve around theft, but they can also have alternative motives, such as:
- Negative publicity
- Network sabotage
- Data manipulation
Cybercriminals use many different attacks to extract information from financial institutions and the individuals who engage with them. Some types of cyberattacks on investment banks include:
- Third-party data breaches: Third-party systems pose security threats if they lack the same amount of cybersecurity as the bank’s primary networks.
- Mobile apps: While your institute’s mobile apps may be secure, a client’s device might not be. Without security on personal devices, your entire institute can be vulnerable to a cyber attack.
- Cryptocurrency hacks: Cybersecurity in cryptocurrency is sparse, and the crypto market has suffered some significant attacks since its inception 11 years ago.
- Phishing: Cybercriminals pretend to be financial institutions to extract personal information from customers and investors.
How to Improve Investment Bank Cybersecurity
There are many ways you can increase security and protect your business against cyberattacks. Cybersecurity strategies for investment banks include:
- Education: Ensure your employees and clients are well-informed about the potential threats of cyberattacks. Provide information to clients and ongoing training to employees on ways they can protect their data.
- Continuous monitoring: Constantly monitor your networks for bugs or outdated security systems.
- Cybersecurity specialists: Work with knowledgeable cybersecurity specialists like the ones at Agio. We monitor and respond to cybersecurity threats in the banking sector while using secure information systems to ensure disaster prevention.
Better Cybersecurity With Agio
At Agio, we’re committed to making cybersecurity fast, easy, and reliable. Our team consists of knowledgeable specialists with industry-specific expertise. Contact us online to learn more about our services or design a solution for your firm.
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