The lending industry faces a considerable cybersecurity risk. Three significant factors enhance the cybersecurity risk of lending businesses.
Traditional lending is quickly shifting to digital platforms, but unfortunately, digital media attract bad actors. The increase in data breaches makes vast amounts of people’s personal finance information available. Three, decision software may make lending businesses vulnerable.
With the increased likelihood of attacks, lending businesses need to improve their cybersecurity. Here are cybersecurity best practices that players in the lending industry can employ.
Update Software Frequently
Software used in the lending business has many uses, including processing transactions. As a result, the software is a core part of a lending business, making it a massive target for hackers. Usually, the software has functionalities that ward off cybersecurity attacks.
But, cyber threats are constantly evolving. Therefore, lenders should update their loan management software whenever possible. Doing so allows them to patch vulnerabilities and help prevent breaches. By updating software whenever necessary, enterprises can avoid new threats from attackers.
Train Staff
A significant number of security breaches happen because of errors by employees. A mistake could involve carelessly handling data. Unfortunately for businesses, hackers take advantage of the vulnerability presented by employees. Lenders can train staff on preventing cybersecurity attacks.
Through training, employees will understand how easy it is to cause a data breach. It can be as simple as opening an email attachment or using an unsecured internet connection. A bad actor can get through a lending business’ defenses and lie in wait. When employees understand the danger, the next thing is to teach them how to fight an attack.
Lending business owners can work with experts who educate employees on attacks. The potential cost of a data breach makes such programs worthwhile.
Leave It To The Experts
Lenders can have a dedicated IT department to ensure the business’ cybersecurity. The department will have the role of:
- Monitoring the lending platform
- Dealing with possible loopholes
- Defending the company from attacks
Plus, if the business software needs urgent attention, the department can handle it. Apart from having an IT team to protect the company from hackers, lenders can hire expert consultants. Cybersecurity consultants can develop, implement and maintain systems for the business.
The cyber safety consultants will also help identify potential security gaps. Lenders should focus on consultants with significant experience in the industry.
Tap Into The Power Of Fraud Analytics
Lenders walk a fine line between risk and reward. With the digital transformation of lending businesses, they need to optimize the use of filters to mitigate cybersecurity risks. If they don’t use them enough, they risk approving bad accounts. But, if lenders use them too much, they risk losing revenue.
A measure lenders can implement is using global shared intelligence databases. These platforms identify fraudulent applicants in real-time and prevent them from gaining access. As a result, lenders can automate the entire process for efficiency.
Before You Go,
The lending industry is a primary target for cyberattacks because of the potential financial gain. Therefore, understanding how lenders can keep businesses safe from cyber threats and prevent them from happening is better than dealing with them after the fact.