Since the banking and finance sector went digital, cyber crimes have become rampant in the industry. Driven by data breaches, most of these cyber crimes are financially motivated. Today, innumerable malicious actors are constantly trying to steal valuable data such as online banking numbers, passwords, social security numbers, insurance details, financial account information, etc. Once they manage to steal or guess these identity attributes, they try to accomplish multitudes of cyber crimes like hacking into a bank account, filing a fake tax return, defrauding a billing system or insurance claim, or opening a new credit line, to name a few. All this fetches them heaps of money, only to the dismay of the bank and its users, which causes them to suffer substantial financial losses.
To shield against such unauthorized individuals exploiting critical data, banks and financial institutions resort to multi-factor authentication or MFA. This authentication method secures the high-risk applications of these organizations, protecting user access and almost every digital entrance point of their online domain. The successful deployment of MFA helps eliminate the risk of data breaches while providing a seamless user experience. In the last decade, MFA has received massive acceptance in the UAE financial sector. MFA has been a game changer for Kuwait’s financial and banking sector. But how is the multi-factor authentication method paving the way for secure banking and online transactions, and what are its attributes? Read ahead to find out!
Digital theft has encompassed the following financial services:
Banks, including retail, commercial, central, federal, online, mutual, investment, etc.
Wealth management
Securities brokerage
Credit unions
Savings and loans
Building societies
Retirement advice, planning, and management companies
InsurTech / FinTech organizations
Credit card and payment processors
Foreign exchanges
Non-bank lenders
Accountants and tax preparation executives
Remember, the stakes are too high in these financial sectors. There are dedicated cybercriminal groups that focus only on hacking banks. The finance industry has a high per capita cost of data breaches, making it a highly sensitive sector. Also, you cannot ignore that customers expect higher security for their valuable data, which means that banking and finance companies should leave no stone unturned to protect their digital data. These enterprises must be diligent enough to closely monitor every application, server, website, account, and everything within their digital realm for the complete protection of their online ecosystem.
What if your user credentials are compromised?
While trying to secure access to personal information or financial assets, relying solely on a username and password is risky. Credentials are vulnerable to compromise and exploitation as hackers use them to gain illicit access to a financial network. Here are a few such examples:
A hacker finds their way into a local database that accommodates the credentials of bank employees.
An insurance claims adjuster demonstrates poor security practices using a common password across multiple applications and systems.
A major security risk prevails due to a terminated staff member of a partner company maintaining access to shared system portals.
A careless user shares their online banking credentials with a shady relative or friend.
The bottom line is that assuming all credentials have already been compromised is always safer. This is why banking and finance companies opt for additional security measures beyond the conventional username and password. These additional measures are of various types, including:
The two-step verification (2SV)
Out-of-band authentication (OOBA)
Two-factor authentication (2FA)
Multi-factor authentication (MFA)
All of the above authentication factors are designed to combat the risk of hackers gaining access to financial networks using valid credentials.
The major drawback of the traditional username and password is that they can be easily stolen and sometimes even guessed, leading to substantial financial damage. There are rising cases of brute-force cyber attacks where cybercriminals use automated password-cracking tools to try several login ID and password combinations until they figure out the right combination. Even if they come across account locking after a couple of failed attempts, they are shrewd enough to have access to multiple ways to gain unauthorized access to digital systems. This is why implementing multi-factor authentication is imperative for banking and finance companies to eliminate risks associated with cyber security.
MFA is a security measure that mandates users to provide multiple authentication factors to verify their identity. This authentication factor can be something the user knows, such as a PIN or a password, or something the user possesses, such as a security key, token or smartcard, or something inherent to the physical attributes of the user, such as fingerprint, iris scan, voice recognition, facial scan, etc.
Multiple authentication forms make it extremely difficult for unauthorized users to access critical assets and data. Moreover, MFA makes user access more easy to manage and monitor, as each user requires a distinct set of authentication factors.
Banks and financial institutions in Kuwait use various methods for implementing MFA. The authentication factors that should be used must be considered after careful analysis, as well as their ability to safeguard sensitive data according to the required security level.
The different types of multi-factor authentication methods are given below:
Knowledge factor- This refers to something the user knows, like answering a personal security question. Other examples of knowledge factors are PINs, OTPs, one-time passwords, etc.
Possession factor - This refers to something the user owns. The user has to use that possession to log into the system. Some examples of possession factors are keys, tokens, badges, or SIM cards. For example, users must provide a code they received on their smartphone. The code can be a text message or a number, or the user might have to receive a phone call.
Inherence factor - This refers to the biological characteristics of the user that can be verified for login. These characteristics can be authenticated through fingerprints, voice recognition, iris, or facial scans.
We know that financial institutions adopt multi-factor authentication to strengthen data protection, where users have to provide multiple types of verification to gain access to the system. The primary advantage of MFA is that it eliminates the risks associated with compromised or stolen credentials. Multiple layers of user verification add extra protection to financial data.
Although a simple concept, accurate MFA implementation requires a well-planned execution strategy, continuous monitoring, proper change management, and constant technical support. Here is the best guide that top financial firms in Kuwait follow for a successful multi-factor authentication implementation.
Identify and analyze all the cybersecurity risks that your organization is facing. This will help you better understand the most critical assets that require the highest protection level. You will then be able to prioritize the most critical assets and protect them against outside threats. MFA is the best way to defy the top threats faced by financial firms, including malicious insiders, phishing attacks, account takeovers, etc. Remember, that any asset with a weak authentication method is an open pathway to intrude even the system with a strong authentication method if both are interconnected.
Your cybersecurity objectives must align with your business requirements and functions. There might be a need for remote access to networks in your organization where certain staff members require digital access to internal resources from remote locations. Appropriate MFA can ensure data security even while enabling remote access with flexibility and accuracy.
When you have a clear understanding of your security risks, you can initiate the process of analyzing cybersecurity solutions that align best with your organizational goals. While you evaluate various MFA solutions, consider critical factors such as cost, ease of use, and compatibility with your existing resources and networks. Opt for the solution that best suits your requirements.
Once you have finalized the cybersecurity for your organization, implement it technically with software installation and configurational changes and also deploy organizational changes that refer to providing adequate training to employees concerning the solution. There must be a good balance between security and usability. Excess security will be a hindrance to employee’s productivity while lack of it will make the system vulnerable to attacks.
After successful deployment of the multi-factor authentication solution, ensure that you monitor and review it at regular intervals. Opt for daily check-ins with employees ensuring that they are easily coping with the system without any issues. Also, monitor usage statistics and review audit logs to ensure efficient usage of MFA and optimum security.
Remember that MFA is not a magic wand. It cannot be the sole answer to all your cybersecurity threats. It is an integral part of a multi-layered security approach which comprises other measures like intrusion detection, firewalls, and data encryption to name a few. Cybersecurity is a continuous process and multi-factor authentication is a critical part of that process.
MFA is a fundamental pillar of modern cybersecurity. It aids in the protection of sensitive information in your organizational network. It also ensures compliance with stringent rules synonymous with your industry and regional standards. With the advancement in the UAE digital businesses, cyber threats have become more robust. This mandates dynamic authentication methods for the security of all businesses in the country including the Kuwaiti market. Businesses in Kuwait are implementing MFA solutions as a means to solidify their security measures and make them more reliable for stakeholders and customers.
If your company wants strong MFA implementation, but experiencing trouble in its setup, then make sure you partner with a trustworthy cybersecurity provider like eMudhra. Working with such experienced providers will help you get the expert help you require for the effective security of your digital systems. Our robust and customised MFA solutions will align with your business goals while ensuring compliance with industry regulations and protecting your business data.
The primary advantage of partnering with eMudhra is that we provide expert guidance throughout the process involving MFA selection, tailoring the solution as per your business needs, deployment, implementation, continuous monitoring, and much more. Our expert team of security professionals specialize in the efficient navigation of unique challenges of implementation of MFA across multiple platforms including Windows, Linux, and Max ecosystems.
Our team at eMudhra is experienced in encountering a varied range of challenges, which makes us a pro in offering tailored solutions with guidance ensuring synchronization with important compliance frameworks. Moreover, eMudhra provides continuous monitoring facilities to ensure an active and responsive MFA setup that combats evolving threats. We have a proactive approach that includes regular assessments along with important updates to your security infrastructure thus mitigating all kinds of security vulnerabilities.
To know more about our vast range of MFA solutions, contact our team at eMudhra today!