Information Security Incident Response in Banking and Telecommunications
Recent events have highlighted severe information security incidents across various sectors, necessitating a robust and coordinated response. These incidents include a credible cyber threat alert issued by the RBI to banks, a scheme involving the renting of bank accounts for illegal activities, and a major data breach at AT&T affecting millions of customers.
Review these real-life cases that took place in the last 2 months.
30/06/2024: Banks put on alert! RBI warns banks of ‘credible threat intelligence’ regarding cyberattacks
24/06/2024: Rs 1,000 for every Rs 1 lakh of bank transfer: The price of ‘renting’ out bank accounts
12/07/2024: AT&T Massive Data Breach – Nearly All Customers Call and Text Logs Leaked
The entities most affected by these threats includeBanks, Telecommunications Companies (e.g., AT&T), Regulatory Bodies (e.g., RBI, FCC), Cybersecurity Teams of end Customers, Law Enforcement Agencies among others.
Let us look at two examples of how cyber security threats can be handled.
To mitigate the risks and threats, the entities should have a cybersecurity and compliance frameworks in place.There should be ongoing monitoring and surveillance of financial transactions and data access.
Example 1: Banking Industry
RBI identifies a credible cyber threat and promptly notifies banks to enhance their cybersecurity measures.
Banks review and update cybersecurity policies based on RBI’s intelligence, focusing on enhanced monitoring and incident response plans.
Banks implement advanced threat detection systems to monitor for signs of account renting and other suspicious activities.Upon detecting suspicious transactions indicative of account renting, banks freeze the involved accounts and collaborate with law enforcement for further investigation.
Banks launch awareness campaigns to educate customers on the risks of renting out accounts and the importance of maintaining account security.
Banks ensure compliance with RBI guidelines and regulatory requirements, including reporting incidents and implementing mandated security measures.
Banks and telecommunications companies invest in regular training for employees on the latest cybersecurity threats and best practices.
Example 2 - Telecom Industry
A telecom giant discovers a data breach and informs affected customers, providing guidance on protective measures.
It revises its data protection policies, especially concerning third-party cloud services, and improves encryption and access controls.
The company deploys enhanced security measures to monitor data access and prevent future breaches.
It engages cybersecurity experts to assess the breach’s impact, secure the compromised data, and work with regulatory bodies like the FCC during the investigation.
The company provides support to affected customers, including identity theft protection services and compensation for any financial losses incurred.
Results
In both the above examples some of the controls under ISO that come into play are Threat Intelligence and Notification, Policy and Procedure Updates, Enhanced Monitoring and Surveillance, Incident Response and Mitigation, Customer Protection and Support, Regulatory and Legal Compliance and Continuous Improvement and Training.
The controls resulted in the following benefits:
- Enhanced security posture for banks and telecommunications companies
- Improved customer trust through transparent communication and effective incident management
- Strengthened regulatory compliance and collaboration with law enforcement to prevent and respond to future threats
Implications
This integrated approach highlights the critical need for proactive threat intelligence sharing, robust policy updates, enhanced monitoring, and effective incident response to safeguard sensitive data and maintain public trust in the banking and telecommunications sectors.
