IoT and Machine Identity Management in Financial Services

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IoT and Machine Identity Management in Financial Services
brooke.crothers
Tue, 28/06/2022 – 17:39

How is the IoT changing the financial industry?

The IoT has already had a positive impact on the financial sector and will only do so in the future. The Object Bank facilitates the billions of data transfers that take place every day. It enables insurance companies to collect and share data with customers about their insured assets in real time, enables consumers to make instant contactless payments, and provides the framework for retail banks to collect information about every customer who enters one of their establishments.

The most notable and well-documented example of investment in IoT infrastructure has been retail banks. To create a convenient customer experience, they have invested growing revenues in “fintech” that performs payment transactions and transfers behind the transparent processes we know and use today.

The IoT has also transformed the financial services industry in various ways:

  • Real-time data. With the IoT, data can be collected in real time. This gives banks a huge advantage as they can make important financial decisions quickly.
  • Fraud detection. The IoT has helped mitigate many risks associated with fraud and has helped detect and block hacked accounts. The IoT can collect user data and analyze activity, where it is then sent to the cloud, where it matches typical user behavior patterns. If unusual data has been detected, the user will be alerted and the account will be temporarily disabled.
  • Better investment decisions. Monitoring the state of the market in real time can help improve investment decision-making. IoT has the ability and potential to make accurate business forecasts and track business behaviors.
  • Personalized customer experience. The IoT personalizes the customer experience and provides real-time data to make more informed decisions, while providing a seamless experience.
Security challenges loom

The susceptibility of fintech devices and networks to malfunction is a big concern. In June 2018, Visa payment systems collapsed across Europe, preventing millions of customers from using point-of-sale devices to pay for goods. Although Visa reported that there was no malicious attack involved in the failure, the incident demonstrated how dramatic, widespread and financially detrimental the structural collapse of an IoT infrastructure can be.

Another concern is that IoT devices are not protected by design. Although governments and institutions are taking many steps to secure the manufacture of these critical devices (for example, the IoT Cybersecurity Act of 2020 and NIST SP 800-213), they are often shipped and distributed as devices. hackable. Therefore, financial products used to transfer money and personal data provide an attractive attack surface for cybercriminals. If criminals manage to breach security, they have instant access to customer financial data.

Additionally, IoT devices can be exposed through their cloud or web application services. The lack of strong authentication to protect the wide array of distributed IoT devices leaves the door open for adversaries to penetrate the corporate network and literally wreak havoc.

How to protect the IoT in the financial sector: the identity of the machine

The power of IoT devices is limitless. These systems possess large volumes of highly sensitive and valuable consumer information that can yield significant rewards to attackers. More and more of this data will continue to be generated and will become more accessible and desirable as the number of connected devices, users and interactions grows at an exponential rate. Therefore, organizations must find a way to store, track and protect them, and quickly.

Perhaps the biggest challenge in securing IoT in financial services is where and how the technology is used. According to a recent Forrester survey, 36% of bankers said leveraging IoT to improve operational efficiency is a “high or critical priority.” Most IoT use cases in banking have been in areas where the type and role of connected devices often has less visibility, such as supply chain, trade finance, and consumer goods. equipment.

We’ve seen organizations invest a lot of money and effort into mechanisms to protect their networks, perimeters, and endpoints. However, attackers will always try to locate the path of least resistance, such as the multitude of IoT-connected devices.

What’s needed is a defense that quickly and easily identifies, monitors and protects all connected smart devices operating in and around your business. This is where machine identities come in handy. Machine identities not only allow you to identify and authenticate connected devices, but also provide financial institutions with additional benefits, including:

  • Know what and where each IoT device is
  • Have continuous (24×7) visibility, not a one-time scan, update or fix
  • Understand the risk level of each device on your network
  • Mitigate as soon as negative behavior is discovered
  • Build a Zero Trust policy where trust can only be given when verified and authenticated

However, to take advantage of machine identities in the financial services industry, organizations must deploy a modern machine identity management platform. Given the importance of machine identities across industries, it’s no surprise that Gartner has identified machine identity management as “critical.”

The Venafi Trust Protection Platform powers enterprise solutions that give you the visibility, intelligence, and automation needed to protect machine identities across your organization. To learn more about how our platform can help financial services institutions protect their valuable machine identities, contact our experts.

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As an industry that trades the intangible, from the exchange of long-term stock assets to digital payments for consumer goods, the financial services industry may not seem directly associated with something tangible like the Internet of Things (IoT). However, the transformational impact and intrinsic value of IoT lies in the transmission of data.

In the financial services industry, IoT plays a pivotal role in payment processing and security, where it can function as a cybersecurity tool or a mobile point-of-sale (POS) system that securely encrypts information. of payment. In fact, retail banking has relied on the IoT for several years now, with the most obvious example being automated teller machines (ATMs). This common form of IoT for financial services supports real-time transactions and displays account balances without communicating with anyone.

Other IoT applications for financial services include:

  • Assist customers in real time
  • Enable high volume wireless payments and transactions
  • Support for portable devices that replace credit cards and traditional smartphones
  • Electronic Fulfillment of Customer Support Ticketing Options
  • Combining AI with Industrial IoT to Test Customer Support Performance

Take control of your machine identities through automation and ELIMINATE breakdowns!

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