Financial Sector Urged to Step Up Cyber Security Efforts

The financial services sector is under increasing pressure to accelerate its adoption of advanced cyber security measures to stay ahead of evolving threats. With the rise of digital banking and financial services, customer identity and access management (CIAM) strategies have become critical to ensuring seamless customer experiences while protecting customer identities.

Threats Abound

Fraud detection and prevention are major concerns, with sophisticated schemes constantly emerging. Identity analytics and behavior analysis are essential for identifying anomalous access patterns and transactions. Regulatory compliance and identity management (IAM) are also pressing issues, with financial institutions struggling to manage digital identities while ensuring compliance with:

Know Your Customer (KYC)
Anti-Money Laundering (AML)
Privacy regulations

Challenges Abound

Entitlement sprawl and management pose a significant threat, as FS consumers and employees interact with various digital platforms, leading to increased security vulnerabilities. Managing access rights becomes complex and error-prone, making the sector a prime target for identity theft and fraud. The lack of standardized authentication approaches across institutions complicates user experience and security protocols.

The Rise of Deepfakes

The ease with which deepfakes can be created poses a significant threat to businesses worldwide. Financial institutions must maintain robust computing power, forensic algorithms, audit processes, and talent to combat this growing menace.

Solutions Abound

Improving security and experience through tools like:

Biometric authentication
Single sign-on (SSO)
Multi-factor authentication (MFA)

can enhance the customer experience, leading to increased engagement and loyalty. Identity analytics can detect fraud and protect customers and assets. Implementing effective IAM tech solutions that automate compliance processes can build customer trust.

KPMG’s Expertise

KPMG professionals are well-versed in applying leading thinking to financial services firms’ most pressing cyber security needs. Our experts can help develop custom strategies, assess cyber security programs, and advise on the implementation and monitoring of ongoing risks and response to cyber incidents.

To learn more about KPMG’s Financial Services cyber security specialists or to request assistance with any cyber security issues impacting your business, please contact us. Our related cyber insights and services include:

Cyber cloud assessments
Privacy automation
Third-party security optimization
AI security
Managed detection and response