Comprehensive Cybersecurity in Finance Strategies for Singapore

What is cybersecurity in finance?

Cybersecurity in Finance, also known as financial cybersecurity, involves protecting financial institutions and their clients from cyber threats. This includes implementing measures to ensure the integrity, confidentiality, and availability of sensitive financial data and systems. 

Financial institutions like banks, credit unions, insurance companies, and investment firms handle vast amounts of sensitive information and large transactions, making them prime targets for cybercriminals.

Key aspects of financial cybersecurity include preventing banking cyber-attacks, securing online and mobile banking platforms, and protecting internal networks and databases from unauthorized access. The goal is to prevent data breaches, financial fraud, and other cyber threats that could undermine the safety and trustworthiness of financial institutions.

Importance of cybersecurity in financial services

Under-resourcing IT and security operations in banking and finance complicates security and compliance efforts. A Fortinet SecOps survey revealed that only 44% of businesses have dedicated IT security resources, with 92% finding it challenging to keep skills updated amid evolving threats.

• Protecting Sensitive Data: Financial institutions manage sensitive data like customer information and transaction details, which are prime targets for cybercriminals. Effective cybersecurity ensures this data is encrypted, securely stored, and accessible only to authorized personnel, preventing breaches and unauthorized access.
• Preventing Financial Loss: Cybercriminals can directly steal funds, manipulate records, or use stolen credit card info for fraud. Data breaches also lead to regulatory fines, legal costs, and reputational damage. Robust cybersecurity prevents such attacks and mitigates their impact, preserving financial stability.
• Maintaining Consumer Trust: Trust is crucial in financial services. Customers need assurance that their data and transactions are secure. Investing in strong cybersecurity in finance measures helps maintain and enhance consumer trust, preventing loss of customers and damage to reputation.
• Enhancing Operational Efficiency: Strong cybersecurity not only defends against attacks but also improves operational efficiency by ensuring uninterrupted services and minimizing downtime. This is essential for customer satisfaction and confidence.
• Future-Proofing Against Emerging Threats: As technology evolves, so do cybercriminal methods. Financial institutions must continuously update their cybersecurity strategies to stay ahead of new threats, ensuring a resilient and secure financial ecosystem.

Watch more: Cyber Security in Australian Banking: Importance, Threats & Challenges

Challenges of securing financial services

Securing financial services is a major challenge due to the sector’s high appeal to cybercriminals, including well-funded criminal organizations and hacktivists aiming to disrupt markets. Here are the main challenges in the Singapore market

• Diverse and Sophisticated Threats: Financial services face a wide range of sophisticated threats. Security teams must defend against various attack vectors such as convincing phishing emails, cloud-based assaults, and ransomware, which has become more severe with strains like Maze and Ryuk. Attackers are increasingly using ‘double extortion’ tactics to maximize their leverage, leading to significant breaches where millions of customer records are exposed in single attacks.
• Rapid Digital Transformation and Supply Chain Risks: Technological advancements, such as cross-border electronic payments, offer great convenience but also widen the digital attack surface. Financial organizations dealing with international transactions are increasingly exposed to sophisticated cyber threats as their digital footprint expands. Ensuring robust cybersecurity in finance is crucial to managing these risks.
• Cloud Technology Adoption and Risks: The shift to cloud services for daily operations introduces significant security implications. The cloud expands the attack surface, allowing threat actors to navigate and exploit different areas of the digital infrastructure, often evading detection.

Cybersecurity solutions for financial services

To combat the ever-growing cybersecurity risks for financial services in Singapore, adopting a multi-layered approach is crucial.  Here are essential cybersecurity in finance solutions for financial institutions in Singapore:

Multi-Factor Authentication (MFA) and Endpoint Security

Implementing MFA adds an extra layer of security by requiring users to provide multiple forms of authentication—such as entering a code sent to their phone—before granting access. Endpoint security ensures that all devices connected to the network, including laptops, servers, and mobile devices, are protected against unauthorized access.

This includes using antivirus and antimalware solutions, firewalls, intrusion detection and prevention (IDP) systems, and data loss prevention (DLP) tools. For financial institutions in Singapore, incorporating cybersecurity in finance measures into endpoint security is vital to maintaining robust defenses against attacks and adhering to local regulatory standards.

Encryption

Encryption is a critical component of cybersecurity in finance for financial services in Singapore. It adds an extra layer of defense by converting data from a readable format to an unreadable format, which requires a unique digital key to decrypt. This is essential for protecting data transmitted over networks or stored on devices. 

By encrypting sensitive information, financial institutions can ensure that even if data is compromised, it remains unreadable and unusable to unauthorized individuals. Encryption also supports data integrity by ensuring that information has not been tampered with during transmission, aligning with Singapore’s regulatory requirements for data protection.

Security Information and Event Management (SIEM)

SIEM is a combination of services and software used for security event management (SEM) and security information management (SIM). SIEM solutions collect and analyze security event logs from various systems and applications in real time, enabling financial institutions in Singapore to detect and respond to potential security incidents promptly before they disrupt business operations. 

Additionally, gaining visibility into network activity helps meet compliance requirements, which is crucial for adhering to local regulations in Singapore.

For example, a financial institution in Singapore might use an SIEM solution like Splunk or IBM QRadar. These tools aggregate log data from different sources, such as transaction systems, email servers, and endpoint devices. By analyzing this data, they can identify suspicious activities or anomalies—such as unauthorized access attempts or unusual transaction patterns—that could indicate a security threat. 

This proactive approach allows the institution to address potential issues quickly, ensuring robust cybersecurity in finance and compliance with Singapore’s stringent regulatory standards.

Zero Trust Architecture

Zero Trust is not just a security model but a shift in cybersecurity philosophy. It operates on the principle that breaches are inevitable. With this ‘assumed breach mindset,’ trust is never implicit, regardless of whether an access request originates from within or outside the network.

Singapore’s digital-first governance and agile regulatory framework offer a unique advantage in adopting Zero Trust. Regulators have recently adopted the Government Zero Trust Architecture (GovZTA) to enhance the government’s cybersecurity posture, balancing risks and usability. 

By integrating such principles across both public and private sectors, including financial institutions, Singapore can strengthen resilience against ever-increasing attacks. This involves a comprehensive overhaul of cybersecurity policies, from user access controls to data encryption and incident response protocols.

For financial institutions in Singapore, cybersecurity in finance benefits greatly from Zero Trust architecture. This model limits privileges to the minimum necessary and continuously monitors network activity. For instance, if user credentials are stolen, Zero Trust prevents lateral movement within the network, protecting critical financial data and backups from malicious actors and ensuring they remain secure and reliable.

How SmartOSC protects financial institutions

Cyber Security Services We Offer

With 18 years of expertise in crafting and securing digital experiences for retail enterprises worldwide, SmartOSC is well-versed in the complexities of your organization and its partner network. We employ a thorough, all-encompassing approach to strengthen your cybersecurity, delivering effective protection now and safeguarding your future.

• Incident Response: Prepare for cyber threats with SmartOSC’s expert incident response team. We swiftly handle full-scale cyber events, minimizing response times, managing impact, and accelerating recovery for effective crisis management in cybersecurity in finance.
• Managed Service: Benefit from 24/7 global managed detection and response, hands-on remediation, and a thorough understanding of your environment through continuous management and optimization.
• Security Operations Center Management: Enhance your defense with world-class threat intelligence, adversary simulations, and incident response services. Our proactive monitoring and response protect against both known and unknown cyber threats.

Case Study: OCB OMNI 4.0

In collaboration with Backbase’s local partner SmartOSC, OCB implemented its OMNI 4.0 digital banking platform within six months, establishing itself as a leader in digital transformation. The platform, designed for speed, convenience, and security, migrated over 7,000 internal users with positive feedback on its performance and security.

OCB OMNI 4.0 features advanced FIDO security technology with robust encryption and multi-layered protection for transactions, emphasizing cybersecurity in finance. Starting July 1, 2024, it will also include biometric authentication to further enhance security and user protection in compliance with State Bank Decision 2345.

The platform personalizes the customer experience through modern technologies, including an intuitive suggestion app with just two clicks, the ability to split large transactions for quick transfers, and transaction categorization for expense management.

Watch more: SmartOSC Facilitates OCB’s Launch of OMNI 4.0 App, Offering Instant Modern Financial Services in Just 6 Months with Backbase Engagement Banking Platform

Conclusion

As Singapore’s financial sector faces growing challenges in cybersecurity in finance, implementing a comprehensive strategy is vital for protecting sensitive data and maintaining trust. 

To stay ahead of threats and ensure robust defenses, partner with SmartOSC. Our expert solutions and services are designed to fortify your cybersecurity posture and support your institution’s resilience. Contact us today to secure your financial operations and enhance your cyber defense capabilities.