Cybersecurity Threats to Guatemala’s Financial Institutions on the Rise, Experts Warn
As the digital landscape continues to evolve, Guatemala’s financial institutions are increasingly vulnerable to cyber attacks, experts warn. The rise of cybersecurity risks poses a significant threat to these institutions, with 84% of senior risk executives predicting an increase in cybersecurity risks in 2022.
Growing Concerns
A recent KPMG survey found that 74% of respondents expect compliance risks to rise alongside cybersecurity risks. This growing concern highlights the need for financial institutions to prioritize cybersecurity and transparency.
The Importance of Transparency
Investors, regulators, and stakeholders demand transparency from companies regarding their management of evolving cyber risks. This includes providing insight into factors that could significantly impact a company’s financials. Audit committees play a crucial role in helping organizations understand the impact of cybersecurity on financial reporting and reevaluating privacy and security standards.
Key Questions to Consider
Experts pose several key questions for financial institutions to consider:
- Does the institution have a data governance framework outlining how and what data is collected, stored, managed, and used?
- Which business leaders are responsible for cybersecurity and privacy across the enterprise?
- How does the board ensure assignment, coordination, and accountability for the company’s cybersecurity and data privacy policies?
Importance of Preparedness
Experts emphasize the importance of having a plan in place to respond to a data breach. This includes details on notification procedures for partners, customers, and regulators. In the event of a ransomware attack, institutions must consider whether they are willing to pay the ransom and how they will locate and prioritize data for recovery.
Weak Access Management
Matt Miller, KPMG principal specializing in cybersecurity risk issues, warns that “weak access management, along with insufficient authentication controls, continue to give cyber attackers access to the same resources and data that legitimate users are accessing.” He emphasizes that banks must take immediate action to tighten up customer and enterprise identity and access management programs to prevent account-takeover threats.
Consequences of Inaction
Without swift action, financial institutions in Guatemala may find themselves unable to ensure appropriate prevention against the latest account-takeover threats. This leaves them vulnerable to potential data breaches and cyber attacks.
By prioritizing cybersecurity and transparency, financial institutions can mitigate the risk of cyber attacks and protect their reputation and assets. It is essential for these institutions to take immediate action to tighten up access management programs and prepare for potential data breaches.