Preventing Ransomware Attacks in the Financial Sector: Cloud-Based Defense Strategies

RFA delves into how financial firms can defend against ransomware attacks using cloud-based security tools and expert IT support.

In 2023, there were over 317 ransomware attacks, with a significant percentage of these targeting organisations in sensitive sectors like healthcare and finance. Since the finance sector deals with real money and liquid assets, it is a prime target for attackers, and ransom demands for victims in this industry tend to be much higher than the average.

This massive risk posed by ransomware attacks makes it crucial for financial firms to take every possible measure to protect themselves from becoming the next victims. Fortunately, there are many cloud-based tools and solutions that firms can integrate into their security arsenal to better defend themselves against ransomware attacks.

In today’s article, RFA will discuss proven cloud solutions and tools that firms can use to stay ahead of ransomware attacks.

Cloud-Based Backup and Disaster Recovery

The goal of a ransomware attack is to encrypt sensitive files and then demand a ransom to decrypt them. To render this move worthless for attackers, firms must create backups for their systems and data. That’s why a robust cloud-based backup and disaster recovery strategy is crucial for financial institutions. Having secure offsite backups ensures that critical data can be restored without paying a ransom.

Best Practices for Backup and Disaster Recovery

Utilize robust storage solutions: Use immutable storage to prevent alteration or deletion.
Data encryption: Encrypt the backed-up data for added security.
Implement the classic 3-2-1 backup rule: Keep three copies of data on two different media, with 1 offsite.
Regularly test backups: Firms should make sure all their backups are recoverable and meet both the Recovery Time Objective (RTO) and Recovery Point Objective (RPO)
Automate backups: Use cloud tools like Azure Recovery Services Vault to schedule backups to prevent human error and ensure consistency.

Cloud Security Posture Management (CSPM)

Using Cloud Security Posture Management (CSPM) solutions allows financial firms to detect and mitigate misconfigurations that could lead to security breaches. These tools continuously monitor cloud environments to enforce security policies and ensure compliance with industry regulations like GDPR in the EU.

By identifying vulnerabilities and recommending corrective actions, CSPM solutions like Microsoft Defender for Cloud help institutions maintain a strong security posture. These tools are automated, making them more reliable since they require no human intervention to perform their roles.

Cloud-Based Endpoint Protection & Threat Detection

Common ransomware attack vectors include malicious attachments, software vulnerabilities, and infected USB devices. Utilizing robust endpoint protection solutions is one of the most effective ways to prevent attackers from exploiting those attack vectors. Cloud-based endpoint protection and threat detection solutions use AI-driven security mechanisms to identify and block suspicious activities that may lead to ransomware attacks.

These platforms analyze behavioral patterns and detect anomalies that could indicate an attack. End-point protection platforms like Microsoft Defender for Endpoint also provide real-time threat detection, automated response capabilities, and endpoint isolation in the event of an attack to minimise damage.

Zero Trust Security in the Cloud

Having robust identity and access management (IAM) systems significantly improves a firm’s defense against any form of attack, including ransomware. Using strategies like Zero Trust is among the ways to improve the robustness of any IAM system. Zero Trust security models ensure that financial institutions enforce strict identity verification and least privilege access to prevent unauthorised access.

Multi-factor authentication (MFA) is a key component of zero trust, requiring users to verify their identities using multiple authentication methods. Modern IAM solutions like Microsoft Entra ID make it easier for financial firms to adopt zero-trust principles for both their cloud and on-premise infrastructure.

Cloud Email Security & Anti-Phishing Tools

Phishing emails are also a common attack vector for ransomware infections. Using cloud email security and anti-phishing tools plays a crucial role in prevention ransomware attacks that normally start with phishing emails. These tools use AI-based email filtering to detect and block malicious emails before they reach employees' inboxes.

Cloud collaboration and productivity platforms, such as Microsoft 365, have built-in anti-phishing tools to help firms safeguard their email communications. In addition to automated processes, firms need to regularly train their employees on how to take advantage of these tools when they encounter a suspicious email in their inbox.

Security Information and Event Management (SIEM) & Security Orchestration, Automation, and Response (SOAR)

SIEM tools focus on collecting and analyzing security data to detect threats, while SOAR automates and orchestrates responses to security incidents. Using these tools allows firms to detect threats related to ransomware attacks early enough before significant damage is caused. Firms can implement these solutions in their cloud environment, and the choice of which one to use largely depends on the cloud platform they select.

Multi-Region Data Replication

All major cloud providers, including Azure, allow businesses to replicate their data across multiple regions to increase availability and redundancy. In addition to increasing availability, this approach can also help improve resilience against cyberattacks like ransomware. In case a ransomware attack targets one data center, multi-region data replication ensures that a copy of the data is stored in a separate geographical location.

This approach reduces the risk of permanent data loss when attackers take over data in one data center. Remember, replicating data across regions involves extra costs, but this cost is worthwhile considering the security benefits companies receive.

Using Ransomware-Specific Cloud Security Solutions

There are several cloud security solutions designed specifically to combat ransomware. These tools are designed to protect against encryption-based attacks. Modern ransomware security tools use behavioral analysis to detect ransomware activity and can take immediate actions, such as isolating infected systems or blocking malicious files before they are executed. Popular examples include include Sophos Intercept X and Veeam Ransomware Protection.

Other Best Practices to Prevent Ransomware Attacks

Regular Security Audits and Penetration Testing: Conducting routine vulnerability assessments and penetration testing helps financial firms identify weaknesses before attackers do. By simulating cyberattacks, organisations can proactively address security gaps and strengthen their defenses.
Employee Training on Phishing and Ransomware Threats: Your firm’s team is always your first line of defense against any attacks. That’s why educating employees on recognising phishing emails and practicing safe online behaviors is essential. Regular security awareness training ensures that staff members can identify potential threats and respond appropriately.
Enforcing Strong Access Control Policies: Implementing role-based access control (RBAC) ensures that employees have only the necessary permissions for their roles. Firms should also follow the principle of least privilege to further reduce the risk of unauthorised access that could potentially lead to ransomware attacks.
Keeping Cloud Security Tools Updated: Regularly updating cloud security tools and policies ensures that financial firms remain protected against evolving ransomware threats. Patching vulnerabilities and applying security updates in a timely manner helps prevent exploitation by cybercriminals. Vulnerabilities are patched automatically by the cloud provider or the firm’s security team, depending on the cloud model the firm uses.
Opting for More Serverless Compute Solutions: Serverless computing solutions place more responsibility on the cloud provider, including ensuring the security of the firm’s cloud environment. Cloud providers typically offer robust solutions to prevent ransomware attacks. Therefore, to reduce the security responsibilities on your shoulders, avoid using IaaS solutions like VMs whenever possible.

Conclusion

Despite the increasing prevalence of ransomware attacks, there are several cloud solutions and tools that financial firms can use to stay ahead of these threats. By using the cloud security tools and solutions discussed in this article, firms ensure that threats leading to ransomware are dealt with before attackers can take over their systems and data. For the best results, firms need to choose the right tools that suit their operations both in the cloud and on-premises.

However, most firms have limited internal expertise to know the best solutions and tools to protect themselves from ransomware. That’s where reliable managed IT providers like RFA come in. At RFA, they have cloud security expertise that can design the best security solutions for your firm to prevent ransomware attacks, whether in the cloud or on-premises. Their teams have experience in preventing ransomware attacks, specifically those targeting the finance sector.