Public cloud computing is growing in popularity among investment management firms. In the past, firms embraced cloud computing technology via the private cloud methodology due to its inherent security features and service and support model. Now, with technological advancements enhancing security, investment management firms are embracing the public cloud model. Continue reading to learn why the investment industry has warmed up to public cloud computing.
Agility, Flexibility and Scalability
The public cloud's flexibility, agility and scalability make it an ideal option for fast-growing or evolving investment firms. The ability to add or remove cloud computing resources as your business needs evolve provides flexibility (not to mention cost savings, but we'll get to that later). This also allows firms to deploy new applications, solutions or technologies in a timely manner and with greater ease.
To learn more about the public cloud, you can read Microsoft's whitepaper, "10 Myths About Moving to the Cloud"!
Cross-platform messaging app, WhatsApp, earlier this week announced that it was breached. This breach left users unknowingly vulnerable to malicious spyware installed on their smartphones. The security vulnerability affected both iPhone and Android devices, with WhatsApp urging users to update their apps as soon as possible.
In light of this security breach, today’s blog article will share some best practices to help firms keep their names out of the headlines. Sometimes it’s the basics we forget about so here are four evergreen tips we recommend businesses to follow for robust IT and infrastructure.
Tip #1 - Guard Your Network
In addition to utilising data centres and/or investing time and money into building and maintaining a secure Comms. Room for infrastructure and physical devices, firms are advised to ensure the right practices are in place to protect just as important nontangible assets, their networks.
WannaCry is still fresh in the mind of CISOs and IT managers, it stands as a reminder as to just how important it is to secure your business network. Here’s are some tips from our experts:
Carefully consider who requires access to your network along with the level of access needed on a per user basis. Granting unlimited access to only trusted users will reduce the chances of any malicious content being introduced to your network.
Creating strong passwords for all your networks is a must. Whilst this may seem an obvious thing to do, it can often be overlooked when passwords are being changed frequently in a bid to boost security. Our recent blog share tips on creating strong passwords.
Categorized under: Security
The most effective cloud data security strategies feature several protective layers. System-level defenses, which constitute the outermost layer, secure the so-called plumbing of the cloud, or the compute containers, networks, operating systems and the other overarching components that facilitate cloud-based connectivity. Application-level security features follow.
Data-level protections form the final layer, which stands as the last line of defense against cybercriminals on the technology front. Past these layers stand your end users, who require training to ensure they don’t compromise the whole strategy.
While cloud-computing vendors are responsible for developing and deploying the data security features included in the first layer, internal IT teams or managed service providers must build out the two remaining strata.
Many cloud application environments are subject to established data security tools that have proven effective over time, including:
In the evolving technology landscape, coupled with regulatory concerns and investor demands, CTOs at investment management firms must be prepared for a host of complex technology challenges in today’s world. Here are some of the top challenges CTOs in the investment management industry are facing today:
1.) Data Security, Privacy and Governance
One of the top challenges, if not THE top challenge, for CTOs is cybersecurity. Troublesome threats include AI-driven cyber attacks, ransomware and malware attacks, phishing schemes and internal threats, among others. Cybersecurity programs require attention, expertise and consistent evaluation to ensure you have a robust security posture, and developing the proper protections, plans and programs is time consuming and challenging.
2.) Multi-cloud Computing Challenges
While cloud computing has grown in popularity and become more accepted by investment management firms, they were more comfortable with using the private cloud based on its inherent security. Now, due to advancements in security, more firms are incorporating the public cloud into their methodology. Challenges lie in every step, from planning and deciphering which cloud model best fits their firms' needs, to implementing and securing the cloud, managing vendors, and educating employees and other internal and external stakeholders.
3.) Compliance Regulations and Audits
All businesses in the financial space need to be especially cognizant of the regulatory bodies and compliance requirements specific to their industry. Compliance audits ensure that the firm is adhering to the regulatory guidelines and drive all technology related decisions. Failure to maintain compliance can result in hefty fines or legal action. This responsibility often falls on the CTO, and it is no easy job to maintain compliance across an investment firm.
4.) Strategic Investment in Technology and Budgetary Concerns
In general, IT budgets are growing among investment management firms, and with the progressive and evolving technology landscape, new tools, technologies and services appear and create tough choices regarding budget spend. CTOs must evaluate which tools are useful, valuable, and trustworthy for the organization. For some CTO's, getting management buy-in for new technologies is a challenge of its own. On the other hand, for some CTOs convincing the management team that a technology or tool isn't the right fit for the firm is the challenge.
5.) Finding Talent
According to our 2019 Global Investment Management IT Survey, respondents indicated that lack of in-house cybersecurity talent was a top 5 concern for 47% of UK businesses and 22% of businesses in the US. The talent pipeline depends on potential hires and their skill sets, and the shortage of talent in general, specifically in security, cloud computing, data analytics and business analytics.
Hacker groups continue to become more sophisticated and targeted in their attacks. Case in point is the “London Blue” hackers organization, which is called “one of the most notorious business email compromise hacking groups.”
London Blue has created a database of 50,000+ executives, who they impersonate in wire transfer request emails to company finance department. The spear phishing emails appear real and convey a sense of urgency. According to security provider, Invinsec, the group compiled the list by “looking for people with the positions of CFO, CEO, Executive Assistant of CFO and other financial related positions in websites like LinkedIn.”<
Preparing Your Employees
Here are three recommendations firms should follow to avoid becoming prey.
Wire Transfer Processes: Establish a strict wire transfer and validation process that employees must follow regardless of the request originator – i.e. even if the CEO stats they transfer is urgent your employees must still follow protocol. As for protocol, at a minimum you should require a two-step verification, including a phone verification if the request comes via email. Additional recommendations provided by Invinsec include:
“Have separation of duties so that a single employee cannot transfer large sums of money alone. Having a second approver makes it much more likely that an erroneous transfer request will be spotted before being executed; and
Follow strict methods for requesting transfers, establishing whether an email from C-level executives is an approved request mechanism.”
Monitor the Dark Web: User credentials are for sale across the Dark Web, which makes it imperative for firms to have a monitoring program in place. Here at Eze Castle Integration we offer Eze Dark Web Monitoring, which continuously scans the Dark Web for user credentials and then takes automatic action if a compromise is discovered.
Categorized under: Security
To celebrate World Password Day, continue reading to learn about password safety best practices! Stolen credentials like usernames and passwords and account takeover (ATO) instances are increasing at an alarming rate. This can occur when credentials are stolen and sold to the highest bidder on the dark web. This can wreak havoc on a firm's reputation, relationships, and finances. Continue reading to learn about password safety best practices.
Passwords like “12345” or “password” are very predictable, as are consecutive letters. To ensure the safety of your password and privacy, be sure to:
Keep the password complex, i.e. incorporate letters, numbers, and symbols and that change often. By doing so, this alleviates the option of someone cracking the code of your password. Additionally, aim for a long password (think 8 characters) - the longer the password the better, and same goes for complexity.
Avoid using personal information in your password that may be easy for someone to figure out. Things to avoid include your name, address, date of birth, pet’s name and children’s names. Instead, make up a sentence and use the first letters. For example, 'I love creating complex passwords with eight characters!' turns into this password: Ilccpw8c!
Make sure your passwords vary across different platforms – switch it up. It is okay to use the same word, but be sure to change it up by capitalizing different letters, or substituting letters for numbers such as changing an “e” to “3”.
For investment management firms to embrace a security-first approach, they must regularly audit and evaluate their cybersecurity risk profile and adjust as necessary based on the evolving security landscape and technological advances. Continue reading for six questions your firm should reflect on regarding their cybersecurity risk profile.
What is our commitment to cybersecurity and what is our outlook on the future?
Regulators and investors continue to ask more questions about cybersecurity because they want to know that firms are effectively mitigating risk. To meet these growing expectations, firms must demonstrate that you take cybersecurity risk seriously and have implemented sound systems, policies and procedures to combat those risks. As the threat landscape and technology continue to evolve, investment management firms need to evolve accordingly and develop better ways to counteract threats. Firms don’t necessarily need to implement every available security technology, but they should be keenly aware of their options and have a plan to effectively mitigate as much risk as possible.
How are we addressing third party risk and oversight?
Investment management firms often rely on third party vendors to obtain functionality or capabilities that they need, want or can’t afford to produce on their own. But moving functions out of the firm's control can present challenges. With any outsourced function, the firm inherently takes on additional risks at the hands of the third party. But it's critical for investment managers to limit those risks through sufficient due diligence. To combat vendor risk, financial firms need to maintain strict oversight of all third party relationships and investigate security practices and protocols, particularly for those vendors who have access to the firm's confidential information. An outsourced vendor should be providing the same level of security (or better!) as your firm would if the function was under in-house control.
Though sometimes underestimated, developing and implementing a comprehensive employee training program creates an internal culture of security and ensures that all employees maintain a "security-first approach" to everything they do. This will make your employees an asset to your data security as opposed to a threat and bolsters your firm's cybersecurity strategy.
To learn more about creating an internal of security, downloud our guidebook, Four Step Guide to Employee Security Awareness, Culture of Security.
Late last year, the Financial Conduct Authority (FCA) published a cross-sector survey. 296 firms across the wider UK financial services landscape including asset managers, investment firms and banks were surveyed to investigate how effective resiliency practices surrounding their cybersecurity and technology are. There were some shocking findings, what stood out the most was that there was a 138% increase in technology outage incidents between 2017-2018. Results from the survey also indicated that nearly half of firms do not upgrade or retire old IT systems in time.
As an industry, whilst we’re getting better at building and maintaining a strong infrastructure with access to evolving tech and enhanced security processes, there is still pressure to do more to ensure your network is truly bulletproof. Earlier this month, experts from Eze Castle Integration and leading law firm, Simmons & Simmons, explored key areas of concern outlined by firms in this survey, sharing guidance on the cybersecurity, operational and managing third-parties aspect of building resiliency. Today’s blog article will roundup key cyber and technology considerations covered at the event by Dean Hill, Executive Director at Eze Castle Integration.
Categorized under: Security
The official definition given in TechTarget’s IT Dictionary reads: “Authentication is the process of determining whether someone or something is, in fact, who or what it is declared to be. Authentication is a process in which the credentials provided are compared to those on file in a database of authorized users’ information on a local operating system or within an authentication server. If the credentials match, the process is completed and the user is granted authorization for access.”
Controlling access to ensure individuals only access the information they need is at the heart of authentication. With stories of password compromises becoming more common it is important to understand the types of authentication factors available and good computing practices.
As part of Information Security Planning, firms should also identify applications, services or websites that require at least one level of authentication (e.g. password protection, PC certificate, or security tokens) as well as any that may require multi-factor authentication.