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Saudi Arabia’s Financial Institutions Face Cyber Security Threats as Digital Participation Surges
Riyadh, Saudi Arabia - As Saudi Arabia continues to digitize its economy, local financial institutions are being targeted by cybercriminals with alarming frequency. The stakes are high for the financial sector, which holds a wealth of personal and financial information that is prime pickings for hackers.
The High Cost of Cybercrime
According to a recent report by Ponemon Institute, the global rate of cyberattacks in the financial services industry is higher than any other industry, with costs reaching $18.3 million annually per company. In Saudi Arabia specifically, the cost of data breaches rose by 6% during the pandemic, according to research conducted by IBM.
Increased Vulnerability due to Remote Work and Financial Technology
The shift towards remote work and increased adoption of financial technology have made Saudi Arabia’s financial sector particularly vulnerable to cybercrime. As many financial institutions seek to offer their customers the convenience of online and mobile banking, a lack of operational planning has left them exposed to threats.
Financial Institutions Must Take Action to Protect Themselves from Cyber Threats
To protect themselves from cyber threats, financial institutions must take several steps:
- Conduct a risk assessment to identify business areas that are most vulnerable to attack
- Implement robust identity and access management controls, including multi-factor authentication, password management, and activity monitoring
- Encrypt sensitive data both at rest and in transit
- Have a dedicated cyber security resource in place to monitor and respond to threats in a timely manner
- Develop a disaster recovery plan in case of a cyberattack
New Regulations and Legislation in KSA
The regulatory environment for cyber security in Saudi Arabia is still developing. In April 2017, the Saudi Arabian Monetary Authority (SAMA) announced the introduction of a new version 10 of their Cyber Security Framework to address the vulnerabilities of the financial sector.
Key requirements under this framework include:
- Deploying a board-endorsed, defined cyber security governance structure
- Developing a clear cybersecurity policy in line with best practices
Additionally, financial institutions must be aware of Saudi’s new Personal Data Protection Law, which contains provisions relating to the processing of personal data and the protection of privacy. The law came into effect in March 2022, and applies to any company or organisation that collects, processes, or uses the personal data of Saudi residents.
Conclusion
As Saudi Arabia’s financial institutions navigate the complex landscape of cyber security threats, it is essential that they take a proactive approach to protecting themselves from attacks. By implementing robust measures such as risk assessments, identity and access management controls, and disaster recovery plans, financial institutions can minimize their exposure to cybercrime.
In light of the new regulations and legislation in KSA, financial institutions must also ensure that they have adequate policies and procedures in place to protect the data of their customers and the security of their digital systems. The digital landscape is constantly evolving, and financial institutions must now take a more proactive approach to cyber security.
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