Outages at TSB and HSBC illustrate the problem: any bank attempting to simultaneous update and preserve their current IT infrastructure, without downtimes or service disruption, faces a monumental task. Now, Veracode’s latest State of Software Security report (SoSS) has revealed financial services is one of the slowest industries at addressing common vulnerabilities; in turn this is leaving banks’ customers open to more outages through code vulnerabilities.
67% of current applications used by banks are at risk from information leakage attacks, which would fall foul of EU GDPR laws.
Indeed, it suggests, that bank’s systems are stuck in the 1980s.
The report found that financial services is one of the slowest industries to address common vulnerabilities found in software. In fact, financial services companies took 29 days to address a quarter of their vulnerabilities — and over a year — 573 days — to remediate all code vulnerabilities. Moreover, a notable 67% of current applications used by banks are at risk from information leakage attacks, which would fall foul of EU GDPR laws.
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Cyber security is still a challenge
Financial organisations tend to have the reputation of having some of the most mature overall cybersecurity practices. Then again, when you consider what banks do, having robust cybersecurity is especially important in this sector. Yet, the industry ranked second to last in the major verticals for latest scan OWASP pass rate, and based on the flaw persistence analysis chart, it is leaving coding flaws and code vulnerabilities to linger longer than other industries.
The financial sector is prolific at testing, with almost as many apps as the technology sector. Despite this, in general, the sector is still slow in to open code vulnerabilities.
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“Since financial institutions and banks hold highly valuable information and critical assets, they will continue to be a target of cybercriminals and malicious hacking,” said Paul Farrington, director of EMEA and APJ at Veracode.
“Our data shows the financial services sector scanning a huge volume of applications and finding flaws that need fixing. While that is encouraging, the next frontier is achieving greater speed in fixing those flaws because speed matters. The speed at which organisations fix flaws they discover in their code directly mirrors the level of risk incurred by applications. The sector should consider all dimensions of risk to prioritise which flaws to fix first.”