How One Midsize Bank Protects Against Hacks
In light of ongoing hacktivist attacks on major banks, Lake Trust Credit Union information security pro shares insights on how a smaller bank stays secure without too-big-to-fail resources.
It's a tough gig to be responsible for information security at a midsize bank, but someone's got to do it.
In this case, that someone is Richard Reinders, information security analyst at Lake Trust Credit Union. The Great Lakes-area financial institution has about 400 employees and $1.5 billion in assets. In comparison, Wells Fargo has 265,000 employees and $1.3 trillion in assets.
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Here's the rub: A bank of Lake Trust's size faces many of the same security threats as its much larger brethren. The same holds true for regulatory requirements and related issues.
Banks and their customers make juicy targets for online criminals and the various weapons they use, such as malware, phishing, and social engineering. Compounding the issue is the fact that a targeted attack isn't always just a matter of money. Witness the recent hacktivist attacks against big banks, Wells Fargo among them.
[ Every SMB is a potential target of cyber attack. Learn the threats. 10 Cyber Threats Small Businesses Can't Ignore. ]
I asked Reinders to share a peek at information security operations for a smaller regional bank. In a combination of phone and email interviews, he discussed how Lake Trust keeps risks in check while continuing to meet its members' needs, such as 24-7 account access and mobile banking.
Keeping this balance involves a healthy mix of technology and human effort. The latter often takes the form of training and education, though not of the brown-bag lunch variety that typically put employees to sleep. For example, Reinders ran a socially engineered phishing scam on Lake Trust employees--it was a simulation, of course, but it was a good one, complete with a dummy website and other details. He then shared the results within the organization to help create awareness of email's persistence as a threat vector.
IW: What are your biggest security challenges as a smaller bank?
Reinders: The challenges a smaller financial institution faces are similar to those of larger ones. Recently the FBI released a statement that criminals are now targeting smaller organizations with the same intensity and skill set. We’ve already been seeing that in some of our logging, like [with] our intrusion detection system and our tracking of more sophisticated phishing attempts. Our Help Desk, for example, is there to help people out. That kind of purpose ends up being abused by individuals who try to socially engineer information. I think [phishing] is back because it's so effective. If an email is enough to compromise an organization like RSA, who are supposed to have security top of mind, then you know it is something that will get you results.
IW: How do you solve those problems with limited resources?
Reinders: Resources are a constant issue, but most organizations are trying to come to terms with that. The ability to truly understand the issues and how to resolve them becomes critical. Knowing the risks will allow you to rank, prioritize, and resolve them in the most efficient fashion.
IW: You've done some interesting things in terms of security awareness and training among employees and members. Can you share examples?
Reinders: We actually spend quite a bit of time on that. We do a yearly security training where we talk about things like mobile devices and passwords. Then as [specific risks] come up, we send out notices. We try to do that sparingly because you don't want to numb the recipient [with] a constant barrage of things to watch out for. We do constant testing [on] ourselves. We've had people dress up as exterminators and go to every floor in one of our administrative buildings [looking for vulnerabilities].
Education includes members and involves a yearly security week that uses our blog, Twitter, and Facebook. We also have an online security center on our website that is accessible from the home page. We have a few plans for the future to further expand what we do for our members.
Ed. note: Reinders also ran a simulated spear phishing attack on employees without notifying them in advance. He sent an email that solicited staff feedback on a potential new product, complete with a fake website that used content that would be available to any actual attacker, such as the logo on Lake Trust's real website. Such training exercises appear to work well: Within 15 minutes, an employee had escalated the phishing email as suspicious to both the IT and risk management departments, as well as directly to Reinders.