Every FinTech hack is unique – distinct goals, varied costs, and individual points of failure. However, all major hacks have one thing in common: they can be prevented.
The threats are constant and can come from anywhere. For instance, a recent state-sponsored attack in mid-2024 targeted Brazil’s government and its aerospace, tech, and financial sectors. According to Google’s Mandiant and Threat Analysis Group:
"Similar to their targeting interests in other regions, cryptocurrency and financial technology firms have been a particular focus, and at least three North Korean groups have targeted Brazilian cryptocurrency and fintech companies.”
Effective cybersecurity is multilayered and combines secure infrastructure with employee training and a culture of vigilance. The rapid pace and brisk changes in tech create a challenge in ensuring robust data protection for financial services. Innovation means speed.
But while moving fast is tempting, rapid advancement should never occur at the expense of security.
The world of finance is highly regulated and innovators must also manage the tightrope walk of ensuring regulatory compliance. The good news is that compliance is just one of the many key strengths provided by Privileged Access Management (PAM).
It All Starts with PAM
In financial services, PAM is essential for managing access to highly sensitive data and systems. Cybercriminals are drawn to privileged access, which grants users elevated permissions to critical systems.
Nearly 40% of all breaches utilize stolen credentials, often with devastating results.
Failing to secure key accounts can result in unauthorized access to data, manipulation of financial records, and even fraud, leading to significant financial and reputational damage.
As financial institutions face these risks, they must prioritize a PAM solution. By implementing PAM best practices in finance, such as Multi-Factor Authentication (MFA) and other strict access controls, organizations reduce the likelihood of unauthorized access.
Monitoring Access Never Ends
It's not enough to simply grant access to a system; companies must continuously assess who should be accessing what, for how long, and whether certain access points are still appropriate.
Real-time monitoring of privileged activities allows financial institutions to detect potential threats before they escalate. In the event of system downtime, this grants administrators much-needed visibility into the root cause of the issue.
“Let’s face it, malicious actors are actively testing your systems all the time”, says Marcus Scharra, senhasegura Co-founder and CEO. “If you’re not more vigilant and more energetic than those hostile forces, a breach is just a matter of time.”
PAM provides comprehensive auditing and monitoring tools, helping organizations quickly identify and resolve any security breaches or operational failures. By proactively managing privileged access, FinTechs can mitigate risks, maintaining both regulatory compliance and security.
Uncovering Insider Threats
Not all threats come from the outside. Insider threats, where employees misuse their privileges for malicious purposes, are, unfortunately, a common source of compromise. PAM solutions like those provided by senhasegura enforce the principle of least privilege, which ensures that all users only have the access necessary to perform their specific job functions.
This limits the potential for misuse of sensitive data and helps prevent insider threats from becoming major incidents.
Even when someone tries to compromise a high-level user's credentials, senhasegura offers innovative tools to stop them. Features like User and Entity Behavior Analytics (UEBA) capabilities use AI and machine learning to monitor user behavior and detect unusual behavior.
By understanding and defining a baseline for typical behavior, we can then identify anomalies and respond to potential threats in real time. With these solutions, even having “the keys” to your most sensitive systems isn't enough to gain unauthorized access.
Defending Against Social Engineering
Social engineering remains one of the most prevalent attack vectors for financial institutions. This extremely common form of attack manipulates employees into providing sensitive information, usually involving the use of psychology to trick people into compromising an account.
PAM prevents social engineering with real-time monitoring for anomalous activity, in combination with regular employee assessments and training, to ensure a corporate culture that guards against social engineering attacks.
No cybersecurity tools are foolproof without proper employee training, in finance or any industry.
Building a Roadmap for Risk Management
To truly protect their operations, organizations need to understand where their vulnerabilities lie and develop a roadmap to address them. PAM solutions should be a fundamental part of this process.
Starting with basic security controls like password management and MFA, financial institutions can build a solid foundation for privileged access security.
Automation plays a key role in modern PAM solutions, with the ability to reduce human error and ensure that security policies are consistently enforced. As Scharra notes, “Automation empowers security teams to focus on strategic initiatives and proactively address emerging threats, ultimately strengthening the organization's overall security posture.”
senhasegura, for example, offers automated solutions that streamline privileged access management, making it easier for organizations to protect their critical assets while maintaining compliance.
Leading the Way with PAM
As FinTech continues to evolve, the need for innovative PAM solutions has never been greater. By embracing PAM best practices, companies can protect their most sensitive assets, maintain compliance, and continue to drive innovation in an increasingly competitive market.
senhasegura sits at the forefront of financial industry security by offering comprehensive, AI-driven PAM that integrates seamlessly with broader, smarter identity protection platforms.
By protecting privileged access, FinTech companies can stay secure and ahead of the competition.
