If you’re searching for ways banks can strengthen their cybersecurity defenses against ransomware attacks, you’ve come to the right place.
Ransomware is a serious and growing threat to financial institutions, so it’s crucial banks take proactive steps to protect themselves and their customers. In this comprehensive guide, I’ll outline 10 key things banks can do to better protect themselves from ransomware going forward.
Let’s start with a brief overview of the ransomware threat for context.
Ransomware is a type of malicious software, or malware, designed to deny access to systems or data until a ransom is paid. Attackers infect systems with ransomware, typically through phishing emails or remote access trojans, then encrypt files and demand payment, usually in cryptocurrency, in exchange for the decryption key.
For banks, a ransomware attack could disrupt operations and access to customer accounts. It could also compromise sensitive financial and personal data if backups aren’t properly secured.
The ransomware problem is only getting worse as cybercriminals continue refining their techniques. In 2021 alone, ransomware payments totaled over $600 million according to one estimate. With banks holding vast amounts of valuable customer data and conducting critical financial services, they remain highly appealing targets. That’s why it’s so important for banks to take a proactive, multi-layered approach to ransomware protection going forward.
1. Implement a “Defense in Depth” Security Strategy
Instead of relying on any single control, banks need to embrace a “defense in depth” approach with overlapping security measures at different points in their IT infrastructure. This includes firewalls, web gateways, endpoint protection, network segmentation, identity and access management best practices, regular system and software updates, training employees on secure practices, and more.
The goal is making it as difficult as possible for ransomware to spread even if one layer is breached.
2. Prioritize Endpoint Detection and Response Solutions
Ransomware often spreads from infected endpoints like PCs, servers and Internet-facing devices into the broader network. Banks should deploy next-gen endpoint protection like EDR (Endpoint Detection and Response) software.
EDR solutions go beyond traditional antivirus to provide around-the-clock monitoring of endpoint activity. They can detect suspicious behaviors indicative of ransomware attempts and contain infected systems before attacks spread. EDR is a must-have for any bank serious about ransomware protection.
3. Implement Regular Backups and Test Restorability
Even with strong prevention, no security is 100% foolproof. That’s why banks also need rock-solid backup and disaster recovery strategies. Data and systems must be regularly backed up to offline, air-gapped, and immutable storage.
Banks should also test the ability to restore from backups on a regular basis. If ransomware does strike, banks need assurance they can get up and running again quickly without paying cybercriminals. Immutable backups provide an additional safeguard against ransomware modifying or encrypting backup files.
4. Segment Networks and Limit Lateral Movement
Once ransomware gets a foothold on one system, it often attempts to spread laterally through unsegmented networks to other machines. Banks can disrupt this lateral movement by implementing strict network segmentation. Separate critical systems from endpoints and the internet using firewalls. Also use micro-segmentation to divide networks into smaller sub-zones and control access between them. This “air gap” approach makes it exponentially harder for ransomware to hop from one zone to the next.
5. Enforce Least Privilege Access Controls
It’s also crucial for banks to lock down account privileges using the principle of “least privilege access.” Don’t give employees or systems more access than their jobs require.
Monitor account usage with logs and alerts. Promptly deactivate accounts for ex-employees. Restrict administrative control to as few trusted individuals as possible using just-in-time controls when elevated access is needed. Reducing what accounts and systems can access significantly raises the bar for ransomware spread.
6. Mandate Strong Authentication for Remote Access
With more employees working remotely, banks need strong authentication for any VPN or remote desktop access to internal systems. Simple passwords are no longer enough.
Implement multifactor authentication (MFA) using physical security keys or apps whenever users access networks and data from outside the corporate perimeter. MFA places an extra barrier between ransomware and internal systems even if remote login credentials are phished. It’s a must for any bank allowing telework.
7. Provide Targeted Ransomware Training for All Staff
People are often still the weakest link when it comes to ransomware defenses. That’s why ongoing security awareness training is vital – not just at onboarding but at least quarterly. Tailor training scenarios to the specific ransomware threats banks face.
Teach employees how to spot phishing emails and understand appropriate web browsing behaviors. Make sure they know how to respond if they suspect a ransomware infection. An educated workforce is one of the best ways to stop ransomware before it strikes.
8. Harden Infrastructure and Patch Vulnerabilities
Ransomware exploits unpatched vulnerabilities to infiltrate systems. Banks must continuously harden infrastructure configurations and promptly patch all systems, whether on-premises or in the cloud.
Conduct regular vulnerability scans and remediate any issues found. Tighten firewall rules and remove or disable any unnecessary open ports, services, and applications. The fewer vulnerabilities available, the less opportunity ransomware has to gain entry. Continuous hardening and patching is non-negotiable.
9. Monitor Networks for Malicious Activity
Banks also need robust security monitoring solutions to detect ransomware and respond quickly. Deploy network behavioral analytics to baseline “normal” traffic and flag anomalies that could indicate an intrusion or lateral movement.
Log all activity and transactions for forensic investigation. Monitor for signs of command and control communications or data exfiltration that are red flags for ransomware activity. 24/7 Security Operations Centers (SOCs) are ideal for constant monitoring, rapid detection and coordinated incident response.
10. Test Incident Response Plans
Even with the strongest prevention, no bank is guaranteed protection from a sophisticated threat. That’s why tabletop exercises and drills are crucial for testing incident response plans and disaster recovery procedures.
Run simulated ransomware attacks to identify gaps and weaknesses ahead of time. Practice the coordinated execution of plans across business units. Make sure everyone understands their roles and responsibilities. Testing helps banks respond confidently if the worst does happen.
In conclusion, a multi-layered cybersecurity strategy is key to banks enhancing their ransomware protections moving forward. Prioritizing people, processes, and technology with solutions like EDR, strict access controls, backups, patching, monitoring and employee training creates overlapping safeguards. Regular testing closes gaps. While no single step provides complete protection, weaving these layers together raises the bar significantly for cybercriminals. Banks that view ransomware as an ongoing battle rather than a single event will be best prepared to defend against this growing scourge.