March 15, 2023

Heightened Cyber Risk Amid Bank Failures

Cyber Financial Services

2 min read

Risk Strategies Cyber Liability Practice

Heightened Cyber Risk Amid Bank Failures

The recent bank failures may trigger additional cyber risks and threats to businesses, particularly if you need to transition to new banking partners. Please be aware of the heightened risk of cyber bad actors using social engineering techniques and phishing attempts.

In an effort to help you, we recommend the following best practices to combat the heightened risk and remain vigilant. Following these best practices can help reduce the probability of a social engineering claim and reduce your total cost of risk, not only during these challenging times, but also for your organization’s overall risk mitigation efforts.

Secondary Authentication

With respect to requests for wire transfers or changes in payment instructions it is imperative to institute a secondary means of authenticating the transaction, with strict enforcement. Anytime you receive an email requesting to change wire instructions the request should be a red flag. Your accounting team should call back the internal stakeholder, vendor, or client at a pre-established phone number to confirm the legitimacy of the transaction and the wiring instructions. We would also recommend having a process internally that requires sign-off from multiple parties before any wire transaction is initiated.

Training and Communication

Training employees is the number one line of defense against social engineering attacks. Implementing a regular stream of security awareness training along with periodically testing your employees with fake social engineering emails helps to determine where additional training is necessary in today’s environment. Supplemental training is recommended in light of the expected increase of social engineering threats.

Practice Vigilance at All Levels

Direct employees to check the email address if they get a suspicious or “legitimate-looking” email requesting sensitive information. It might have a known contact’s name in the address, but does it follow the company or vendor’s email format? If an employee receives a suspicious email, they should immediately report it to the IT department. Once made aware of a circulating email scam, alert all employees to be on the lookout for similar emails and provide instructions for what to do if they receive it: don’t click anything, mark as spam, delete.

Additional Risk Strategies resources are available below:

The contents of this article are for general informational purposes only and Risk Strategies Company makes no representation or warranty of any kind, express or implied, regarding the accuracy or completeness of any information contained herein. Any recommendations contained herein are intended to provide insight based on currently available information for consideration and should be vetted against applicable legal and business needs before application to a specific client.

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