Tailoring Cyber Tabletop Exercises for Banking & Finance Institutions

The Banking and Finance Sector is amongst the top targets of cyber criminals - for obvious reasons. Sensitive customer data, high-worth transactions, critical banking operations and a tremendous amount of reputation damage with one cyber-attack.

The stakes in this industry are as high as they get, in financial and theatrical terms - a mix that the advanced criminal tends to love. This is why Cybersecurity Tabletop Exercises (or Cyber Security Drills) for the Banking and Finance sector have quickly become a top priority.

In this blog, we’ll take a quick look at: 

1. The Major Cybersecurity Challenges of the Banking and Finance Sector
2. Why are Cyber Drills Critical for this Industry? 
3. Tailoring Cyber Tabletop Exercises for the Banking & Finance Sector
4. Major Cyber Attacks in the Banking and Finance Sector in recent past

Major Cybersecurity Challenges of the Banking and Finance Sector 

The financial industry is extremely sensitive to the repercussions of a security incident. A single breach can lead to catastrophic financial losses for the business and its customers. Legal challenges quickly follow and can severely jeopardise business reputation for years to come.

In fact, the new EU DORA regulation is specifically focussed on digital operational resilience of banking and finance entities in the EU in case of a cybersecurity event. The regulation comes into force in less than 10 months and draws our attention to just how critical cybersecurity in financial industry is.   

With the increasing digitisation of financial services, from online banking to digital transactions, the sector has become more vulnerable to cyber attacks than ever before. Moreover, the rise of fintech and the proliferation of mobile banking applications have introduced new threats in the already complex digital landscape. 

The top challenges and types of attacks that this business sector faces include: 

• Malware and ransomware attacks that can cripple entire systems
• Customer Data Breaches
• ATM Fraud
• Fraud and pilferage associated with Banking PINs, OTPs etc. 
• Sophisticated phishing schemes aimed at obtaining sensitive information 
• Insider threats, whether intentional or accidental 
  
  

Why are Cyber Tabletop Exercises for the Financial Sector so Important? 

The Banking and Finance industry has always needed to prioritise cybersecurity , recognizing that a robust defence mechanism is not just about protecting data, but also about safeguarding the integrity of the financial system.

A single data breach in this sector can mean significant amounts of sensitive financial and personal information of customers being compromised. This leads to immediate loss of customer trust and business reputation. Business continuity is also critical for the industry to function seamlessly and retain its customers. 

However, only strategy and documents aren’t enough. The finance industry has to accelerate the pace at which it works on its Cyber Incident Response. 

Having effective cyber incident response plans is the first step in this direction. But it’s equally important to test and measure the effectiveness of these plans. Security team members need to build muscle memory for these plans and become better aware of their individual roles and responsibilities through regular cyber tabletop exercises. 

The DORA regulation, as discussed above, also underlines the importance of scenario-based testing of Digital Operational Resilience of financial entities.  

All of this may sound overwhelming, but it doesn’t have to be so complicated. This blog will help you understand how to conduct a successful tabletop exercise for the banking and financial sector. Using past attacks on the sector, covered later in the blog, you can create a cyber attack scenario suited to your business. You might also want to get started by downloading our Cyber Tabletop Exercise Template document which shows you how to create your own bespoke cyber simulation drill. 

Tailoring Tabletop Exercises for the Banking and Financial Sector

Customising tabletop exercises for the banking and finance sector involves understanding the unique landscape of cyber threats in this domain. At Cyber Management Alliance, we firmly believe in creating bespoke tabletop exercises that specifically address the challenges of our clients’ business and industry. This means incorporating scenarios that reflect actual risks faced by banks, such as data breaches, fraud, and service disruptions. 

Take a look at our Top 30 Cyber Attack Tabletop Exercise Scenarios document for a comprehensive idea of attack scenarios and threat actors you must rehearse for. This document also contains a list of the top 20 asset categories that must be prioritised.  

Here are some of the most important factors to consider when designing a cyber security drill for this sector: 

1. Realistic Scenario Development: Developing realistic scenarios is crucial for effective tabletop exercises. These scenarios should be based on a thorough risk assessment, reflecting the most pressing cyber threats to the banking and finance sector.

For instance, a scenario might involve a simulated attack on the bank's online transaction system, testing the institution’s ability to quickly identify and mitigate the breach while maintaining operational continuity. The key is to create scenarios that are specific enough to provide actionable insights while being broad enough to test a range of response strategies.

2. Regulatory Requirements: The exercise should consider the specific regulatory environment, customer expectations, and the technological infrastructure of financial institutions. This ensures these exercises are relevant, challenging, and effective in strengthening the cybersecurity posture of the sector.

3. Inspired by real-world threats: To maximise the impact of tabletop exercises, integrating real-world cyber threats specific to banking and finance is essential. This involves studying past cyber incidents within the sector and incorporating these insights into the exercise. Going through the  table below would be particularly helpful to achieve this goal. 

By simulating actual events, such as a recent phishing attack that targeted multiple banks, participants can gain a deeper understanding of the tactics used by cybercriminals and how to effectively counter them. The exercise can be enriched with questions such as - “What would you do if this happened to us?” 

This approach not only enhances the realism of the exercise but also ensures that the lessons learned are directly applicable to real-world scenarios.

4. Lessons Learned: The final step is the application of lessons learned from these attack simulations. This involves critically analysing the responses and outcomes of the exercise. By dissecting both successful and unsuccessful strategies, financial institutions can improve their cybersecurity plans and cyber incident response playbooks accordingly. This continuous learning and adaptation process is crucial for staying ahead of evolving cyber threats.

In the banking and financial sector, bespoke cyber tabletop exercises are indispensable for ensuring robust cybersecurity preparedness. The impact of cybersecurity incidents on organisations in this industry can be much greater than others. Therefore, tailored exercises are critical to ensure adequate engagement and a deeper understanding of the threats that loom large. 

Further, exercises that cater specifically to the unique vulnerabilities and operational frameworks of financial institutions bring out more meaningful responses from all participants. They’re encouraged to think critically and practise decision-making for real-life attacks. 

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Recent Cyber Attacks on Banking and Finance Sector 

Analyzing past cyber attacks in the financial sector is crucial for effective cyber tabletop exercises. This retrospective view offers valuable insights into the patterns, tactics, and consequences of real-world cyber threats specific to this industry.

By delving into previous incidents, you can pinpoint common vulnerabilities and draw lessons from the failures and successes of others when it comes to incident response. This reflective approach facilitates the development of more authentic and demanding scenarios for tabletop exercises tailored to the industry. It also ensures that the exercise not only imparts theoretical knowledge but also practical applicability.

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