How MDR makes fintech companies more cyber secure

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An MDR (Managed Detection and Response) service provides an essential level of cyber security for organisations where this is a priority – something that is the case in the fintech sector. In this article, we overview some of the main reasons any fintech business might want to consider an MDR service…

Fintech cyber security

Hackers are always looking for easy money and fintech companies represent an ideal target. As a sector, fintech is rapidly growing and disrupting most aspects of financial services. 

However, whilst traditional banks are often subject to stringent compliance requirements, that’s not always the case with novel, disruptive solutions being created by fintech businesses. As a result, they can offer an easier challenge to cybercriminals.

As such likely targets, and because of the extremely sensitive personal and financial information they process, it is essential fintech businesses make cyber security a top priority.  

Data vulnerability in fintech organisations

Fintech organisations often collect considerable amounts of data. This data can often be their lifeblood, but it also makes them extremely attractive to a breach.

Whether account details, contact information, transaction records, balances or other related items, the data stored makes fintech organisations a treasure trove for hackers.

Because it’s so sensitive, the consequences of any breach for their customers and their reputation can be extremely serious.

The consequences of a data breach for a fintech organisation

Should the worst happen, the costs of a data breach for a fintech organisation can be extremely high.

The direct costs of resolving the breach along with potential fines and legal action are likely to be significant.

However, worse than this, the reputational impact and the loss of trust amongst both existing and potentially new clients can be catastrophic should you be a relatively young organisation. 

Specific cyber security requirements for fintech organisations

Cyber security needs to be integral to the processes and procedures for a fintech organisation.

That will include regular testing of all software and apps, compliance with relevant standards such as the General Data Protection Regulation (GDPR), the Payment Card Industry Data Security Standard (PCI DSS), or ISO 27001 (the gold standard for information security), and basic good practices like those specified in the Cyber Essentials standard. These are firewalls; secure configuration; access controls; malware protection and patch management.

The key is that this cannot be the preserve of one aspect of the organisation, one individual or one team. Everyone needs to own and practice it. It’s a big deal and a lot of work.

Fintech and MDR – what is it?

With near-live, round-the-clock monitoring and visibility of your environment (both on-site and remotely), MDR is a managed service that enhances your security. It includes automated warnings and threat identification that are typically managed by an outside team of professional analysts.

An MDR service, which is typically built on top of a SIEM (Security Information and Event Management) solution, will give you extraordinary visibility into your network both in the present and in the past.

The benefit of MDR is that it offers a proactive approach to security. This enables you to know exactly what is happening and to get prompt assistance when problems develop. You don’t have to stop your employees from carrying out their regular duties.

How MDR helps fintech organisations improve their cyber security

The value of an MDR solution is that it is effectively an extra level of continuous protection and visibility. It not only makes you more secure, but also enhances and simplifies all the systems and processes you already need to have in place.

An MDR solution will be monitoring all the relevant activity across your company networks and devices, whether on-site or remote. It will automatically flag up anything that is out-of-the-ordinary, and hence a potential security risk. It also records all logs meaning you or your security team can work out what’s happened. You can also work out what the potential consequences are and how to fix it if anything goes wrong.

And as mentioned above, an MDR service will work alongside all your existing processes and compliance requirements. It will help deliver the information needed in a much more effective and efficient way, thus potentially saving hours (or more likely days) of work on an annual basis.

MDR – the main benefits for fintech organisations

An MDR service will deliver numerous benefits for a fintech organisation, some of the main ones being:

1) Monitoring downloads of commercially sensitive files 

It’s hard enough to know if commercially sensitive information – for example, a customer database – is being downloaded onto a USB stick by a disgruntled employee in the office. If team members also have access at home, as is much more likely these days, it becomes a different scale of problem. But an MDR service gives you full visibility and can automatically issue alerts if sensitive files are accessed or downloaded. 

2) Providing a history of activity for forensic purposes 

Many organisations experience cyberattacks, and the breach may have already occurred. Intelligent criminals don’t just “smash and grab”; instead, they remain undetected in the system for weeks, months, or even years. With the help of an MDR service, you can not only find this, but you and your team can also figure out what went wrong and how to fix it thanks to the thorough historical logging. Any forensic inquiry can benefit greatly from this information.

3) Managing permissions and credentials 

The MDR service with its SIEM package makes this simple to monitor and control. You can make sure sensitive data is only available to those who should be. You need to know who has access to what and make sure it is only ever the individuals who actually need it.

4) Ensuring devices are running the latest software 

Failure to update software and security updates is one of the biggest threats to security and a catalyst for cyberattacks. This can be quite challenging to manage with remote equipment, but with an MDR service, it becomes very simple.

5) Detecting phishing attacks 

With only one click standing between, for example, business as usual and a potential ransomware crisis, phishing poses the greatest risk to most organisations. An MDR service will assist in automatically identifying malicious emails and removing threats. Furthermore, it is considerably simpler to recover from an attack if it is successful.  

6) Facilitating compliance and supplier due diligence 

Your main goal will almost certainly always be to increase your cyber security. However, it’s becoming more and more crucial to be able to show outside parties that you are doing so appropriately. Customers, procurement groups, or compliance bodies can be affected by this. You will receive all the reporting you require from an MDR service with a SIEM solution, making this procedure quick and simple.

Want to learn more about fintech and MDR?

If you’re part of a fintech organisation and you’d like to learn more about how an MDR solution could help, please call us on 01392 247 110, email info@securious.co.uk or fill in the contact form below .