Independent Banker - July 2017 - 64
Nuts & Bolts
CYBERSECURITY WORLD
In through the back door
Like most other enterprises, community banks are looking more carefully at the
potential security risks coming from their third-party service providers, with the
knowledge that vulnerabilities could be exploited through a number of vendors.
By Karen Epper Hoff man
I
t has been nearly four years
since a major data breach at
Target Corp. captured the
world's attention-not just
because the incident was so
high-profi le and the impact so widespread,
but because it shined a bright
light on a little-discussed way in:
third-party vendors.
When pressed, spokespeople
from the major retailer admitted
that cybercriminals wormed their
way into Target's payment system
through a refrigeration, heating and
air-conditioning subcontractor. This
and similar attacks initiated through
third parties highlight how hackers
can view a company's reliance on its
vendors as a weakness to exploit.
Community banks, too, rely on
dozens of third parties across their
various business lines and channels.
They also often lack the deep pockets
to thoroughly vet all these outsourced
providers. Just as in the Target case,
this creates a large hole that criminals
can take advantage of.
" Cybercriminals will target community
banks through whatever
method they can, " says Thomas
L. Frale Jr., director for business
development at RLR Management
Consulting Inc. " We've had clients
that reported incidents of criminals
64 ICBA IndependentBanker July 2017
stealing a retail or commercial
customer's identity and trying to
perpetrate fraud and money theft via
that method. Whether they can get
at a bank through identity theft or a
third-party relationship, they are consistently
refi ning their attacks. "
Trend watch
Eric Olson, vice president of intelligence
operations at LookingGlass
Cyber Solutions, a threat intelligence
company that works in various sectors,
says concerns with third-party
providers are exacerbated by a couple
of growing trends: namely, the transition
of bank networks and data to the
Independent Banker - July 2017
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Table of Contents
Independent Banker - July 2017 - Intro
Independent Banker - July 2017 - Cover1
Independent Banker - July 2017 - Cover2
Independent Banker - July 2017 - Table of Contents
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