Top Cybersecurity Challenges Facing Financial Institutions

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Cybersecurity Threats to Local Financial Institutions

Cybercriminals are increasingly targeting smaller banks due to their limited cybersecurity resources. As threats like ransomware, phishing, and insider risks rise, community financial institutions must strengthen defenses.

Simple steps like multi-factor authentication (MFA), employee training, and vendor risk management can provide protection. However, the best way to fully understand where your vulnerabilities lie is through an unbiased third-party network assessment. This gives you a clear picture of current threats, especially from bad actors already within your network, helping you take proactive action. 

 

Why Cybersecurity is a Growing Concern

Cyber threats are on the rise across various sectors. According to recent findings from Akamai, 50% of unique organizations impacted by phishing domains belong to the financial services sector, with 3.5 billion credential stuffing attempts recorded over 18 months. Such statistics highlight the urgent need for comprehensive cybersecurity measures, especially in industries that handle sensitive data.

In 2023, over $10 billion in losses were reported across sectors, with financial institutions bearing a significant share due to phishing campaigns, ransomware, and vulnerabilities in third-party services. The International Monetary Fund (IMF) noted that in 2022 alone, losses from cyberattacks exceeded $6 trillion, with smaller institutions particularly at risk. Disruptions to their operations can create broader systemic risks within the financial ecosystem. Community banks must understand these threats as they strategize to fortify their defenses.

Common Threats Facing Local Banks

Cyberattacks come in many forms, but here are the top threats:

  1. Ransomware: A growing threat where criminals hold your data hostage.
  2. Phishing: Emails tricking employees or customers into revealing critical info.
  3. Insider Threats: Employees unintentionally or maliciously cause breaches.
  4. Third-Party Vulnerabilities: Vendors can sometimes be the weakest link in your security.

An unbiased third-party assessment can uncover which threats are most relevant to your institution, providing a clearer roadmap for improvement. 

 

Practical Steps to Strengthen Your Bank’s Defenses

Securing your bank doesn’t require a massive overhaul; it’s about applying the right strategies and knowing where your weaknesses are.

 

  • Multi-Factor Authentication (MFA): Add an extra layer of security by requiring more than just a password.
  • Endpoint Detection and Response (EDR): Keep a real-time watch on all devices connected to your network.
  • Employee Training: Regularly educate your staff on cybersecurity best practices to minimize human error.
  • Vendor Risk Management: Ensure your partners maintain high cybersecurity standards.

 

However, these steps can only go so far if you’re unaware of deeper network vulnerabilities. An independent third-party audit can provide insights into the blind spots your internal team might overlook.

Why Unbiased Network Assessments Matter

It’s easy to overlook gaps when you’re working within your own network every day. That’s why all institutions benefit from a fresh set of eyes. A third-party network assessment provides an unbiased view of your current cybersecurity landscape, identifying potential bad actors that might have slipped under your radar. This objective assessment helps ensure that you stay compliant with regulations and protect sensitive customer data.

Taking proactive action now not only shields you from potential attacks but also helps maintain customer trust, which is invaluable in today’s competitive financial market.

 

The Bottom Line

The cybersecurity landscape for financial institutions is rapidly evolving. While internal strategies like MFA, employee training, and vendor management are essential, the first step is to understand where your network stands today. An unbiased third-party network assessment offers you that insight, helping to catch hidden vulnerabilities and ensuring your institution is protected from current and emerging threats.

Contact us to schedule an assessment and start protecting your bank’s future today.

Trinsio Threat Assessment Case Study: Jefferson County, Idaho

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Third-Party Validation Threat Assessment Leads To Enhanced Cybersecurity Protections for Idaho’s Jefferson County Government

 

Less than 100 miles west of Yellowstone National Park, Jefferson County, Idaho, offers scenic views and unparalleled wildlife sightseeing at either the Camas National Wildlife Refuge or Mud Lake Wildlife Management Area. The county seat, Rigby, is famous as the home of Philo Farnsworth, inventor of the first television system including both a TV receiver and camera. The region was originally founded in the mid 1800s by Pioneers trekking the Old West.

Jefferson County IT Director, Garn Herrick, had recently completed a new next-generation firewall deployment combined with additional security features from his firewall vendor.

However, Garn knew even the best-practices reactive measures on offer from next-generation firewalls no longer can be assumed to be considered comprehensive protection due to the size and scope of today’s cybersecurity attacks and the fact that organizations like Jefferson County now endure almost half of all attacks – far more than any other private or public sector organization.

Garn was aware of the International City/County Management Association (ICMA) published report for State and Local governments entitled “A Look at Local Government Cybersecurity in 2020”, that directed small governments to better protect sensitive personally identifiable information being stored on their networks.

He also knew about the alarming growth of cybersecurity attacks targeting small county and municipal government networks that drove the Cybersecurity Infrastructure Security Agency (CISA) to publish its Cybersecurity Performance Goals (CPGs) recommending a variety of third-party validations available to public and private sector organizations at no cost.

The next task on Garn’s cybersecurity action plan was to align with recent guidance from CISA on third-party validations as a method of identifying any potential gaps in cybersecurity protections through penetration tests, risk assessments, and vulnerability scans.

Like many IT professionals, Garn understood that directives from both CISA and ICMA are critical to follow, but also that the size and budget constraints of organizations like Jefferson County greatly impact their ability to prevent attacks.

As Garn began his search for third-party validations he encountered Trinsio, a technology solutions provider who offers low and no-cost options designed to empower IT departments with tools to protect their networks and data.

A threat assessment from Trinsio identified that a large percentage of the inbound and outbound traffic to and from Jefferson County’s firewall was actually malicious in nature. This data aligned with the majority of similar threat assessments performed by Trinsio for smaller county or municipal governments, further re-enforcing the threats reported on by CISA, ICMA, and other similar groups. It was evident by this data that the consensus across the cybersecurity community is correct, that simply deploying a next-generation firewall is no longer enough protection.

While still a critical part of network security, a firewall’s reactive approach to dealing with threats when paired with a proactive Active Defense with Real-time Threat Intelligence solution offers a new level of cybersecurity protection for any network.

“Even with the peace of mind that came from my next-gen firewall deployment, I knew that my county’s network may not be fully protected (especially from outbound traffic that typically isn’t dealt with at the firewall level). Trinsio’s free threat assessment really opened my eyes to the large number of both incoming and outgoing threats our network was getting exposed too. I told Trinsio about my budget limitations, but they were able to quickly design and deploy an affordable, proactive solution that sits in front of my firewall blocking millions of threats before they hit my network while also blocking potentially malicious outbound traffic at the same time.”

Garn Herrick

IT Director – Jefferson County

Trinsio’s Solution

Trinsio’s threat-blocking technology, powered by Threater’s Active Defense with Real-time Threat Intelligence, proactively protects against threats from every path in your network. Leveraging more than 50 world-class cyber intelligence feeds, Trinsio can inspect, block, and log every known threat trying to access your network.

Since Threater sits in front of the firewall, Jefferson County did not need to rip-and-replace any existing network gear making the process quick, easy, and cost-effective. Millions of bad actors now are being actively blocked on a daily basis before traffic ever reaches Jefferson County’s firewall providing Garn and county officials with an enhanced level of confidence in their security stack.

Results

  • Millions of identified threats detected
  • Significant reduction in time spent monitoring network traffic
  • Implementation of blocklist containing millions of known bad actors
  • Cost-effective solution that fit the county’s budget constraints and needs
  • Active defense built on real-time threat intelligence

Challenges

  • Searching for guidance on CISA-recommended third-party validation testing services
  • Recent deployment of new next-gen firewall
  • Small, rural county with limited budget.
  • Ideal target for cyber-attackers

Trinsio Threat Assessment Case Study: Sherman County, Kansas

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Defense-in-Depth Mindset Leads Sherman County to Threat Assessment

Sherman County, Kansas, faced a critical need to modernize and secure its IT infrastructure across multiple facilities, including the courthouse, sheriff’s office, health department, and 911 dispatch services. To tackle this, the county’s Director of IT, Eric Albright, led an initiative to implement a unified, defense-in-depth cybersecurity strategy that would provide comprehensive protection for their network.

Eric had been keeping a close eye on the U.S. Cybersecurity and Infrastructure Security Agency (CISA) guidelines, particularly the Cross-Sector Cybersecurity Performance Goals (CPGs), which emphasize the necessity of third-party evaluations to strengthen security posture. Despite having internal systems like IDS and IPS in place, Eric understood that even the most robust systems need external validation.

Eric’s Perspective

“One of my top concerns was that we didn’t have full visibility into our network traffic,” Eric explained. “Even though we had great systems in place, you just don’t know what you don’t know. Trinsio’s analysis gave us the information we needed to address gaps we didn’t even know we had.”

Eric sought out third-party assistance to help identify vulnerabilities that may have gone unnoticed and to ensure the county’s network was fully secure. His search led him to Trinsio, a trusted provider of no-cost threat assessments for local governments, healthcare institutions, and schools.

Enhancing Security with an External Perspective

Trinsio’s approach appealed to Eric because it didn’t require access to sensitive internal data or administrative privileges. Following a brief consultation, Eric provided Trinsio’s team with non-sensitive public firewall log files. From there, the cybersecurity team at Trinsio conducted a deep analysis of incoming AND outgoing traffic using more than 50 cyber intelligence feeds from around the globe.

The results were staggering: millions of traffic requests from known malicious IP addresses had bypassed Sherman County’s next-generation firewalls. Despite the county’s adherence to industry best practices, these threats continued to evade detection.

The Solution

Trinsio recommended cost-effective solutions that integrated seamlessly with Sherman County’s existing infrastructure, allowing Eric to deploy additional layers of security without disrupting day-to-day operations or requiring new hardware. These new measures enabled the county to block malicious traffic before it reached the firewall and prevent harmful outgoing traffic.

“It’s really comforting to have things in place now that block malicious traffic before it even reaches our firewalls,” said Eric. “We’ve enhanced our security with simple, budget-friendly measures that offer an additional layer of protection.”

Results

  • Millions of malicious traffic requests identified and blocked
  • Enhanced visibility into network traffic
  • Seamless integration with existing systems without additional hardware
  • Implementation of advanced cybersecurity measures beyond the firewall
  • Cost-effective solutions tailored to the county’s budget

Challenges

  • Legacy hardware and disparate systems across county facilities
  • Lack of visibility into network traffic
  • Ensuring compliance with CISA’s Cross-Sector Cybersecurity Performance Goals (CPGs)