Starting May 1, 2022, banks will be required to report ‘computer security incidents’ within 36 hours that are deemed ‘significant’ — meaning disruptive to the business or otherwise damaging, according to new rules from federal regulators.
The rules include incidents like a large-scale distributed denial of service attack or a computer hacking incident that disables banking operations. It is believed that notifying regulators will help “promote early awareness” of emerging threats to individual organizations and the broader system and also help speed response time before the issue turns systemic. (Rules requiring banks to develop and implement response plans in cases of unauthorized access to sensitive customer information have been in place since 2005.)
The new rules will likely benefit government watchdogs seeking a better handle on cyber threats as they evolve and grow. In theory, they’ll be able to leverage the information to protect other banks and the broader financial system. And that’s not a bad thing.
But it won’t help the individual bank or similar business much, at least in the short term, because the problem here is not lack of attention. Like every other sector operating in the modern digital world, banks are already on high alert.
And while that 36-hour time frame sounds speedy, consider this: it takes businesses and other organizations an average of 197 days to even detect a security breach, according to IBM — and another 69 days on average to contain it. The longer a breach goes unaddressed, the bigger the impact — and the more it costs to recover.
Not surprisingly, the average cost of a data breach has continued to climb, and is now estimated at $4.24 million — the highest average cost in 17 years. For the financial sector, the average is considerably higher, at $5.72 million. And that doesn’t include what it costs a firm in terms of reputation and customer trust, which are difficult to quantify. Breaches are a PR nightmare, no matter how strong the contingency plan.
The upshot is this: the detect-and-respond approach to cyber security is failing — and not for lack of trying. All the more reason to prevent breaches in the first place. To avoid the whole mess entirely.
At Blue Ridge, our motto is protect, don’t detect. Our AppGuard and LinkGuard solutions essentially cloak network assets and data-in-transit to eliminate the risk of breach and also protection lag from unknown vulnerabilities.
Gartner projects that by 2025, 30% of critical infrastructure organizations will experience a security breach that will bring their operations to a halt. Organizations that embrace an integrated ‘cyber-physical’ approach will be better protected than those that continue to approach their cyber security piecemeal as they expand their security measures.
Blue Ridge is all about IT/OT convergence. With our solutions, you are fully protected from external discovery and data exfiltration “pre-incident” — eliminating dependency on discovery or response to a network compromise after the fact. Our solutions deploy easily and compatibly with existing and future IT and OT infrastructure, reducing integration complexity and costs. They can be easily tailored to resiliently protect a wide range of use cases without disruption to critical operations.
Banks, like every modern business, have both physical and digital assets to protect and that share bandwidth. Blue Ridge’s approach is to isolate, say, a bank’s security cameras from the rest of the bank’s network to prevent a lateral attack. By segmenting, OT and IT systems are protected in separate enclaves.
In well over 20 years of service to our customers, there have been no reported breaches of our solutions — ever.
Learn more about what Blue Ridge can do for you and your business at BlueRidgeNetworks.com.
Zero Breach for Zero Trust. Blue Ridge Networks.