Cyber risks abound in the financial industry stated Bahaa Abdul Hussein. Constantly seeking fresh approaches to compromise networks, pilfer private data, and damage financial institutions, cybercriminals are the conventional approaches of safeguarding core financial systems, such as perimeter-based security (firewalls and VPNs), are insufficient to guard against these contemporary dangers. Here the Zero Trust security concept finds application.

Zero Trust: What is it?

Under the security concept known as Zero Trust, neither inside nor outside of the company can be trusted by default. Every access request—from an employee, a customer, or a system—in a Zero Trust architecture must be completely validated before access is granted. This implies that users inside the network—who might have been trusted in conventional models—must still authenticate and approve their behaviour.

Several fundamental ideas define Zero Trust:

  • Verify Identity and Context: Based on their identification and the context of their access request, all users and devices have to be authenticated and permitted.
  • Least-Privilege Access: Users and systems are granted least-privilege access—that is, the lowest degree required to carry out their jobs. This reduces the attack area.
  • Micro-Segmentation: Micro-segmentation of network traffic divides it into tiny zones to stop intruders within the system from lateral migration.
  • Constant Monitoring: User activity is kept under observation in order to identify possibly dangerous behaviour.

Why are systems of core banking dependent on zero trust?

Handling important functions such as account management, transaction processing, and client data storage, core banking systems are the centre of any financial institution. Ensuring the security of the priceless and delicate data kept in these systems is absolutely vital. Cybercriminals target the financial industry most of all; hence, conventional perimeter security systems are unable to guard against advanced persistent threats (APTs), insider threats, and other contemporary attack paths.

Using Zero Trust in main banking systems helps to solve various security issues:

Insider Risk

In the financial sector, one of the most important threats is insider ones. Those with access to sensitive systems and data—employees, contractors, and even partners—may abuse their powers. Regardless of the user’s location—inside or outside the network—a Zero Trust model ensures tight identification and authentication checks and verifies every access try. This lowers the threat that compromised or hostile insiders present.

Advanced persistent threats (APTs).

APTs are advanced cyberattacks comprising constant, focused attempts to compromise a company over an extended time. By taking advantage of weaknesses and applying stealth methods, these strikes can avoid conventional security systems. Zero Trust guarantees that no device, user, or system is trusted by default, therefore reducing APTs. Every access request is closely investigated, therefore lowering the possibility of an assailant using system weaknesses.

How to apply zero trust in systems of core banking?

Although applying Zero Trust in basic financial systems is not a one-size-fits-all solution, every bank should take some similar actions:

First address Identity and Access Management (IAM).

Zero Trust rests on identity and access management. Before being granted access, banks should make sure every person and device is authenticated and approved. Strong IAM systems must have single sign-on (SSO), multi-factor authentication (MFA), and role-based access control (RBAC).

Section the network

Micro-segmentation is the division of the network into smaller, more secure zones so, should an intruder find access to one portion of the system, they cannot readily migrate to other regions. This could entail, in a core banking setting, separating the client database from the systems of transaction processing, for example.

Conclusion

Zero Trust offers a much-needed layer of protection for fundamental financial systems in a time when cyber threats are increasingly complex. Banks may greatly lower the danger of data breaches, insider threats, and advanced cyberattacks by supposing that none, inside or outside of the company, is trustworthy by default and by constantly checking all access attempts.

Zero Trust can be difficult and time-consuming, but the security advantages are indisputable, and the defense of important banking infrastructure is well worth the effort. Thank you for your interest in Bahaa Abdul Hussein. For more information, please visit www.bahaaabdulhussein.com.