The information age has changed the way we handle our banking and manage our finances. What we must not forget is that this includes how criminals operate, the vast majority are turning to technology to strengthen their approach. A lack of action could result in a data breach which, on average, has a total cost of 4.2 million euros. Your bank needs to be prepared, and there are several ways to determine whether your bank or financial institution is secure or not. One of them is penetration testing, and that is exactly what we are going to elaborate on in this blog.
Do you know what is going on in this sector regarding email security and secure communication? And perhaps more importantly: does your organization currently have the right security to prevent a data breach? Take a look here: Secure emailing in the financial sector
A penetration test, or simply known as a pen test, is a simulated cyberattack against your computer or security system to check for potential vulnerabilities before they can be exploited by hackers. Insights provided by a pen test can be used to fine-tune your IT policies and patch any detected gaps in security.
In general, there are two categories of penetration testing that tend to apply to financial institutions. These are customer-focused or compliance-driven, versus penetration tests that attempt to exploit people, process, or technology with the objective of breaking into the network and gaining access to sensitive data.
These are main types in banking.
The second scenario describes a more traditional pen test. It covers exploitation attempts against People, Process, and Technology.
This type of pen test is a simulation that involves two teams on opposite ends. The hackers are known as team Red, defense as team Blue. This is a far more realistic way to test the security readiness and responsiveness of an organization as it emulates a real-life situation.
As mentioned before, a pen test explores existing weaknesses in your system by scanning application configurations and the network infrastructure. This is quite a deep scan since even actions and habits of your staff that could lead to data leaks and malicious infiltration are being researched during testing.
To conclude, a report informs you on your vulnerable points, so you know exactly what software and hardware improvements you must consider or what recommendations and policies would improve your overall security.
Once these points of weakness are found, penetration testers then try to exploit them. This allows businesses insight into what an attacker could do in the ‘real world.’ Realistically, they might attempt to access sensitive data and execute operating system commands.
It is important to consider that testers might also tell you that a vulnerability that is theoretically high-risk is not necessarily that risky at all due to how hard it can be to exploit. Only a specialist can perform that type of analysis, which is why many organizations choose to outsource their penetration testing.
In the event of a cyber-attack, your defense should be able to detect attacks and respond adequately and on time. Once you detect an intrusion, you should start investigating, look for the intruders and block them. Whether they are hackers, or experts testing the effectiveness of your protection strategy.
To keep your business operations running, you need network availability, 24/7 communication, and access to resources. Any disruption has a negative impact on your organization. Pentests help ensure that your operations don't suffer from unexpected downtime or loss of accessibility. In this respect, a pen test is similar to a business continuity audit.
When someone internally identifies a problem, your management may not be inclined to respond immediately. A report from an external expert often has a greater impact on your management and is more likely to elicit a response.
Your industry and legal compliance requirements may prescribe a certain level of pentesting. Consider the ISO 27001 standard of PCI regulations, which requires all managers and system owners to conduct regular pen tests and security checks with competent testers. That's because pen testing focuses on real-life consequences.
A data breach cyber-attack negatively impacts the trust and loyalty of your customers, suppliers and partners. However, if your organization is known for its rigorous and systematic security assessments and pen tests, reassure all those interested.
According to KirkPatrickPrice’s methodology, there are 7 stages of penetration testing. However, it is important to note that these may differ from what you might have seen before. Different methods of pentesting around the world tend to have slight variations in the process, but the main stages remain the same for the most part.
This is a general model of the pen test process:
Don’t forget to exercise caution! If conducted badly, it can cause congestion and result in systems crashing. It is common for organizations to outsource pentesting to industry experts and specialists.
The importance of pentesting has only become more evident, especially in a digitalized world that requires you to swim, or you will sink. Pentests allow you to identify gaps in your organization’s security before criminals with malicious intent do and take advantage. Understanding your organization’s weakness enables will allow you to strengthen your defense before the damage can be done. So, whether your reason for implementing pentesting is motivated by security or compliance with laws. At the end of the day, prevention is always better than the cure.