protecting the financial services organization · 2018-09-11 · services organization: how to...

INSIDE

Your Cybersecurity Checklists

Cyber Crime Is on the Rise

The Race Is On

Traditional Defenses Don't Work

Stop Cyber Crime with Juniper Networks

SECURITY

Protecting the Financial Services Organization: How to Defend Against Cyber Criminals in an Increasingly Digital WorldTraditional security methods are proving futile against today’s highly organized gangs of cyber criminals. This is especially the case for financial services firms, where too much is at stake to take chances. Needed: a security solution with centralized controls that responds swiftly to real-time threat data—so that your data is protected wherever your people are.

Executive Overview

Financial services have become a digital business. To some extent this is true of all industries, but the speed and extent of the transformation of the financial sector has been breathtaking. Technologies like blockchain are opening up the space to new competitors. Automation and artificial intelligence (AI) are disrupting a previously stable workforce. Customers are more demanding, and their loyalty is tenuous. And serious cyber threats are coming from all directions.

Once the domain of individual freelance

criminals, organized crime gangs now control

the financial services cyber crime market. A

decade ago, approximately 80% of black-market

cyber criminals were independent loners, with

the remaining 20% consisting of organized

crime factions.1 That statistic has been turned

upside down. These highly organized gangs of

experienced fraudsters operate in the same

manner as traditional organized crime families and

are proving to be even more elusive to prosecution.

Their attacks are highly sophisticated, constantly

evolving, increasingly evasive, and carefully

orchestrated by experienced fraudsters who have

access to infinite resources.

Cyber crime over the last decade:1

Characteristics of organized crime attacks:

80%

20%

20%

80%

independent cyber criminals

organized crime factions

highly sophisticated

constantly evolving

experienced fraudsters

increasingly evasive

carefully orchestrated

access to infinite resources

©2017, Juniper Networks, Inc. 2

Protecting the Financial Services Organization: How to Defend Against Cyber Criminals in an Increasingly Digital World

Simultaneously, rapid technology innovations

and digitization have completely transformed

financial services. Although boosting business

efficiency and effectiveness, these technical

advancements also open many vulnerable back

doors to cyber exploits. Blockchain, with its ability

to store information on distributed ledgers without

a central clearinghouse, is upending markets.

Artificial intelligence now drives the way leading

firms provide everything from customer service to

investment advice. Robotic process automation

(RPA) is creating armies of digital workers, or

“bots,” that are emptying out the busy trading

rooms of the largest brokerages.

In short, the cyber crime market and the financial

services business environment have both changed

radically in recent years. Traditional security methods

are proving futile. It is imperative that the strategies

and technology used to safeguard company

networks, data, and overall brand and reputation

keep pace with would-be attackers to ensure the

timely detection and remediation of attacks.

Although no bank, insurance firm, or brokerage

house company can protect itself 100% from

cyber exploits, we provide checklists of key

security best practices that significantly reduce

your risk of becoming the next victim.



Your Cybersecurity Checklists

The No. 1 attack vector for financial services firms in 2017 is still phishing, with 43% of such businesses reporting this kind of attack. According to PwC's Global State of Information Security Survey 2017, other serious considerations for financial services include the complexity of emerging technology (37%), threats from foreign attackers (35%), and lack of clear guidance from regulators (33%).2

Recognizing who your true adversaries are will help

you formulate a new strategy for securing your

networks and data—in short, your business. You

need to change both your perspective and your

security strategy going forward.

For starters, begin thinking like a cyber criminal. Get

into the mindset of an organized fraudster intent on

breaking into a financial services firm like yours. And

come up with a holistic cyber defense that is fast,

intelligent, automated, and adaptive to meet the

specific cyber threats facing your particular industry.

On the following pages, we present trends in

financial services cyber security to be aware of, as

well as four checklists to follow to make sure your

security defenses meet all these criteria.

Intelligent: Do we have the

intelligence we need built into our

network security measures?

Adaptive: Can we be as agile

as the malicious attacks launched by

organized crime?

Fast: Do we have the speed

we need to stay ahead of organized

crime gangs?

Automated: Have we completed

necessary essential automation?

report attacks43%

complexity of

emerging

technology

threats from

foreign

attackers

lack of clear

guidance

from regulators

37% 35% 33%



Phishing is the No. 1 attack vector for financial services firms in 2017:

Other serious security considerations for financial services:

Cyber Crime Is on the Rise

Organized criminals have elevated cyber crime into a flourishing underground economy where the barrier for entry is low and the payouts are large.

A full 75% of the top 20 U.S. commercial banks

(by revenue) are already infected with malware,

while 95% of the top 20 U.S. commercial banks

(by revenue) were given a network security grade

of “C” or lower by PwC in its 2016 study of security

in the financial services industry.3 Then there’s the

fact that one in every five financial institutions

uses an email service provider with severe security

vulnerabilities.

The top 20 U.S. commercial banks (by revenue):

75% are infected with malware.

95% were given a network security grade

of “C” or lower by PwC in its 2016 study of

security in the financial services industry.




Highly orchestrated gangs of experienced

fraudsters operate in the same manner as

traditional organized crime networks—and are

proving to be even more elusive to prosecution

by law enforcement. Everything from money

laundering to untraceable payment methods to

spoofed domains are weapons in their formidable

arsenals. They use “straw” businesses to launder

their profits, which are often paid in untraceable

bitcoins to secret overseas accounts.

Financial services firms are rushing to place more

and more critical workloads in the cloud—47%

of all their IT services are now delivered via the

cloud.4 They’re also venturing into open source and

the Internet of Things (IoT). All this brings exciting

innovations to both the front and back office, but

also opens up tremendous vulnerabilities.

Security experts warn financial services firms that

we now live in a continuous state of compromise.

It isn’t a question of if you will be hit by cyber

crime, but when.

Cyber crime is expected to become a $2.1 trillion problem by 2019. This represents more than the gross domestic product (GDP) of Canada.5

In 2016 alone, more than 4 billion records were stolen by cyber criminals.6

Cyber crime:

Canada GDP:

$1.53 trillion USD

(2016)(2019)

2016:

4 billion+ records stolen

Vulnerability of financial services firms:

of IT services are delivered via the cloud.

47%

$2.1 trillion

US$1.53 trillion



Intelligent

When asking yourself if your network is prepared

for the onslaught of cyber criminals, the first

criteria is intelligence—not just human but digital.

Financial services security professionals must

place themselves in the mindset of organized

criminals and invest in intelligent security tools that

proactively resist criminal countermeasures.

A Juniper-sponsored study by the Rand Corp. found that cyber criminals succeed at countermanding traditional security tactics such as sandboxing and anti-phishing frameworks. Financial services firms must look to more advanced security solutions to protect their networks.7

Do we have the intelligence we need built into

our network security measures?

Our firewall policy enforcement

is automated.

We have deployed multifactor

authentication.

We use automated patch management

and monitoring.

We have isolated our sub-networks.

We have adequate network

access control.

Our integrated security solution can

detect threats inside the network as well

as at end points.

We feed real-time threat data into our

network policy engines.

Sandboxing and anti-phishing security measures diminish

in effectiveness

over a 10-year period

65%



Adaptive

In 2017 we expect to see not only a record number

of attacks but also record-breaking losses—

including DDoS attacks that result in a 1-terabit

data breach.8 Insurance giant AIG puts financial

services firms at No. 1 risk of getting hit by a

systemic cyber attack over all other industries in

the coming 12 months. AIG experts also say to

expect a “mass” DDoS attack that will bring down

multiple financial institutions in 2017.9 Experts

suggest that a key factor driving this explosion in

number and size of attacks is the growing base

of IoT devices used in financial services firms:

intelligent devices like ATMs, card readers, and

other devices that are connected and often

vulnerable. Organized crime is capitalizing on these

new ports of entry by investing in evolving attack

scenarios, advanced persistent threat tactics, and

dynamic malware exploits. Security technology

must prove as agile and adaptive as the malicious

attacks launched by organized crime.

Can we adapt?

Our security solution is as agile and

adaptive as the malicious attacks being

launched by organized crime.

Our security solution has policy engines

that are fueled by real-time threat data.

Our security solution has flexible and

customizable controls that allow us to

respond swiftly to new threat variants.



The Race Is On

Financial services firms find themselves in a virtual “arms race” with cyber criminals. Reaching into their deep pockets, which contain virtually unlimited resources, organized crime gangs can invest in the latest innovations and hire some of the world’s brightest computer minds to develop cyber threats of ever-increasing sophistication and scale.

Unsurprisingly, 86% of financial services firms

plan to spend more on cybersecurity in 2017,

according to a Duff & Phelps survey. Compared to

2016, when less than 60% of firms said they were

spending more, this shows a sharpened awareness

of the risks.10

But, just like legitimate internet businesses,

organized cyber criminal gangs are creating new

revenue streams by offering cyber crime services

for hire. Ransomware-as-a-service, fraud-as-

a-service, and extortion-as-a-service are now

commonplace offerings on the “dark web.”

By commercializing malware kits and offering

as-a-service packages, criminals have also

lowered the barrier to entry into this lucrative

market for others.

Legitimate financial services businesses simply

can’t keep up.

Cyber crime is big business throughout the world.11

Legitimate organizations can’t keep up with organized cyber criminals.12

Cyber crime was the second-highest reported economic crime

of businesses have already been

infiltrated by cyber criminals

are unsure of whether they have

been compromised

of compromised businesses lost

more than $5 million

One-third of those lost more

than $10 million

32%

18%

50%

Double the ransomware attacks

2016

2019

2017:

10 million DDoS attacks anticipated



phishing/social

engineering attacks

on customers

attacks on local/

branch offices

53%

33% attacks on core

transactional/

back-office systems

attacks on digital/

online banking services

attacks on

point-of-sale systems

23%

31%

20%

Top concerns of financial institutions

Fast

One study of worldwide financial institutions

found that a single security incident could be so

swiftly executed that it could cost as much as $1.2

million. Top concerns of financial institutions are

phishing/social engineering attacks on customers

(53%), local/branch offices (33%), digital/online

banking services (31%), core transactional/back-

office systems (23%), and point-of-sale systems

(20%).13

Most telling of all, two-thirds of the banks

surveyed said they had fallen victim to some type

of financial fraud in the last few years.

With their unlimited financial and human

resources, organized crime gangs move at the

speed of light. Their attack mechanisms and

countertactics elude detection by the traditional

security measures used by financial services firms.

These attacks are being launched both outside

and inside the network.

Do we have the speed we need to stay

ahead of them?

We have a rapid-response solution

in place to immediately act on any

perceived threat—whether from within or

outside the network.

Our centralized control system is capable

of speeding deployment of patch

management and streamlining policy

enforcement across the network.

We have protections woven into the

fabric of the network—and not only at

the end points—enabling the fastest

response rate to a detected attack,

regardless of its location on the network.



Traditional Cybersecurity Doesn’t Work Anymore

Financial services security professionals are struggling to keep up with cyber criminals. The state-of-the-art environments they are deploying—and charged with protecting—are designed to streamline business processes and accelerate revenues. But they also leave their organizations exposed to dangerous cyber adversaries.

The impact has been devastating. Although

financial insurance companies continue to invest in

cybersecurity, they don’t have the same resources

as their foes. According to Gartner, spending on

cybersecurity increased by 7.9% in 2016, topping

$81 billion as organizations scrambled to stay

ahead of cyber criminals.14

Approximately one in 10 financial services firms

says investing in artificial intelligence is a top

priority, according to one study. They are deploying

AI-enhanced robotic process automation (RPA),

natural language processing, and blockchain

across their business-critical operations. AI is also

being used to address rising security concerns.

Yet 2016 turned out to be a record year for cyber

crime. We saw the largest data breaches to

date, an explosion of DDoS attacks, and an

off-the-charts number of ransomware variants.

Legitimate financial services simply can’t keep

up with the criminals.

Traditional security methods no longer apply.

Companies need a unified network security

platform to gain the upper hand.

Organizations leave themselves

vulnerable to cyber criminals

as they adopt emerging technologies such as the cloud, artificial intelligence,

and the Internet of Things without taking appropriate safeguards.



Automated

Financial institutions are at the forefront of

automation, replacing many traditional jobs

with “bots” that possess artificial intelligence

capabilities. But they also need to automate their

network to stay on top of the security threats.

Although organized criminals have the leisure that

comes with deep financial backing, many financial

services businesses possess only limited budgets

and are forced to do more with less. This makes

automation essential.

Just as when using automation in the front office

increases efficiency and reduces errors, automated

security updates to the network have proven less

prone to countermeasures by organized criminals.

Such updates also increase operational efficiency.

Have we completed necessary

essential automation?

We have invested in automated solutions.

We have improved operational efficiency.

We can do more with less personnel.

We orchestrate streamlined delivery

of enterprise applications with

customized security.

Our automated responses to attacks

speed up our ability to detect and

respond to cyber exploits.



Stop Cyber Crime with Juniper Networks

As the cyber crime market and business environment have dramatically changed in recent years, and so must the strategies and technology used to safeguard the company networks, data, and brand reputation of financial services firms.

Juniper’s innovative security approach detects

and remediates threats faster, safeguarding

your financial services business from today’s

cyber crime. Protect your virtual and physical

environment with end-to-end, automated, and

intelligent defense using Juniper’s Software-

Defined Secure Network (SDSN).

To achieve cybersecurity that truly defeats

cyber crime, go to Juniper Networks' security

solutions page.



13

http://www.juniper.net/us/en/solutions/software-defined-secure-networks/

http://www.juniper.net/us/en/solutions/software-defined-secure-networks/

Quick Reference: Your Cybersecurity Checklists

Intelligent

Do we have the

intelligence we need

built into our network

security measures?

Our firewall policy

enforcement

is automated.

We have deployed

multifactor

authentication.

We use automated

patch management

and monitoring.

We have isolated

our sub-networks.

We have

adequate network

access control.

Our integrated

security solution

can detect

threats inside the

network as well as

at end points.

We feed real-time

threat data into

our network

policy engines.

Adaptive

Can we be as agile

as the malicious

attacks launched by

organized crime?

Our security

solution is as agile

and adaptive as the

malicious attacks

being launched by

organized crime.

Our security

solution has policy

engines that are

fueled by real-time

threat data.

Our security

solution has flexible

and customizable

controls that allow

us to respond

swiftly to new

threat variants.

Fast

Do we have the speed

we need to stay

ahead of organized

crime gangs?

We have a

rapid-response

solution in place

to immediately act

on any perceived

threat—whether

from within

or outside

the network.

Our centralized

control system

is capable of

speeding deploy-

ment of patch

management

and streamlining

policy enforcement

across the network.

We have

protections woven

into the fabric of

the network—

and not only at

the end points—

enabling the

fastest response

rate to a detected

attack, regardless

of its location

on the network.

Automated

Have we completed

necessary essential

automation?

We have invested

in automated

solutions.

We have improved

operational

efficiency.

We can do more

with less personnel.

We orchestrate

streamlined

delivery of

enterprise

applications

with customized

security.

Our automated

responses to

attacks speed up

our ability to detect

and respond to

cyber exploits.



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Juniper Networks, Inc.

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Sunnyvale, CA 94089 USA

Phone: 888.JUNIPER (888.586.4737)

or +1.408.745.2000

Fax: +1.408.745.2100

www.juniper.net

Copyright 2017 Juniper Networks, Inc. All rights reserved. Juniper Networks, the Juniper Networks logo, and Junos are registered trademarks of Juniper Networks, Inc. in the United States and other countries. All other trademarks, service marks, registered marks, or registered service marks are the property of their respective owners. Juniper Networks assumes no responsibility for any inaccuracies in this document. Juniper Networks reserves the right to change, modify, transfer, or otherwise revise this publication without notice.

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Phone: +31.0.207.125.700

Fax: +31.0.207.125.701

7400061-002-EN June 2017

You aspire to cloud-like functionality. Juniper helps you get there by simplifying your journey, providing a secure environment where you can build without limits. It’s cloud excellence for all organizations within the financial services industry.

Juniper Networks challenges the status quo with

products, solutions, and services that transform

the economics of networking. Our team co-

innovates with customers and partners to deliver

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provide agility, performance, and value. Additional

information can be found at Juniper Networks, or

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For more information, go to www.juniper.net/

security.

Citations:

1 Markets for Cybercrime Tools and Stolen Information: Hackers’ Bazaar. Rand Corporation. 2014. Sponsored by Juniper Networks. http://www.rand.org/content/dam/rand/pubs/research_reports/RR600/RR610/RAND_RR610.sum.pdf.

2 PwC. Global State of Information Security® Survey 2017. https://www.pwc.com/gx/en/issues/cyber-security/information-security-survey.html.

3 PwC. Security Scorecard Financial Services Report. 2016. https://cdn2.hubspot.net/hubfs/533449/SecurityScorecard_2016_Financial_Report.pdf.

4 Leopold, George. “More Production Workloads to the Cloud, Survey Says.” EnterpriseTech. June 20, 2016. https://www.enterprisetech.com/2016/06/20/production-workloads-cloud-survey-says.

5 International Monetary Fund, World Economic Outlook 2016. https://www.imf.org/external/pubs/ft/weo/2016/02/pdf/text.pdf.

6 IBM XForce 2017 Index. https://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=WGL03140USEN&.

7 PwC Economic Crime Survey 2016. https://www.pwc.com/gx/en/economic-crime-survey/pdf/GlobalEconomicCrimeSurvey2016.pdf.

8 Deloitte Global Predictions 2017. https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Technology-Media-Telecommunications/gx-deloitte-2017-tmt-predictions.pdf.

9 AIG. “Is Cyber Risk Systemic?” December 20, 2016. http://www.aig.com/content/dam/aig/america-canada/us/documents/business/cyber/aig-cyber-risk-systemic-final.pdf.

10 Global Enforcement Review 2017. Duff & Phelps. http://www.duffandphelps.com/insights/publications/compliance-and-regulatory/global-enforcement-review-2017/index.

11 Gartner Says Worldwide Information Security Spending Will Grow 7.9 Percent to Reach $81.6 Billion in 2016. August 2016. http://www.gartner.com/newsroom/id/3404817.

12 Markets for Cybercrime Tools and Stolen Information: Hackers’ Bazaar. Rand Corporation. 2014. Sponsored by Juniper Networks. http://www.rand.org/content/dam/rand/pubs/research_reports/RR600/RR610/RAND_RR610.sum.pdf.

13 Kaspersky Labs. “Cybersecurity in financial institutions 2016 — and what 2017 holds.” 2016. https://usa.kaspersky.com/blog/cybersecurity-in-financial-institutions-2017/10926.

14 Deloitte Global Predictions 2017. https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Technology-Media-Telecommunications/gx-deloitte-2017-tmt-predictions.pdf.

15

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http://www.juniper.net/security

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http://www.rand.org/content/dam/rand/pubs/research_reports/RR600/RR610/RAND_RR610.sum.pdf



https://www.pwc.com/gx/en/issues/cyber-security/information-security-survey.html

https://www.pwc.com/gx/en/issues/cyber-security/information-security-survey.html

https://cdn2.hubspot.net/hubfs/533449/SecurityScorecard_2016_Financial_Report.pdf

https://cdn2.hubspot.net/hubfs/533449/SecurityScorecard_2016_Financial_Report.pdf

https://www.enterprisetech.com/2016/06/20/production-workloads-cloud-survey-says/

https://www.enterprisetech.com/2016/06/20/production-workloads-cloud-survey-says/

https://www.imf.org/external/pubs/ft/weo/2016/02/pdf/text.pdf

https://www.imf.org/external/pubs/ft/weo/2016/02/pdf/text.pdf

https://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=WGL03140USEN&

https://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=WGL03140USEN&

https://www.pwc.com/gx/en/economic-crime-survey/pdf/GlobalEconomicCrimeSurvey2016.pdf

https://www.pwc.com/gx/en/economic-crime-survey/pdf/GlobalEconomicCrimeSurvey2016.pdf

https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Technology-Media-Telecommunications/gx-deloitte-2017-tmt-predictions.pdf



http://www.aig.com/content/dam/aig/america-canada/us/documents/business/cyber/aig-cyber-risk-systemic-final.pdf



http://www.duffandphelps.com/insights/publications/compliance-and-regulatory/global-enforcement-review-2017/index



http://www.gartner.com/newsroom/id/3404817

http://www.gartner.com/newsroom/id/3404817




https://usa.kaspersky.com/blog/cybersecurity-in-financial-institutions-2017/10926/

https://usa.kaspersky.com/blog/cybersecurity-in-financial-institutions-2017/10926/


