Cyber security and its role in the financial sector: threats and protection measures

Abstract

The paper examines the critical role of cybersecurity in the financial sector and the challenges facing financial institutions in today's digital world. The conceptual apparatus of cyber security as an important component of the national security of the state, as well as the most common cyber threats and attacks in the financial sector, were studied. The definitions of the concept of "cyber security" proposed in scientific sources are detailed with the main stages of its provision in financial institutions. Attention is focused on the need to develop an approach to cyber security as an element of risk management, which will help financial institutions reduce the number of threats and losses and maintain the stability of their activities in the conditions of cyber warfare. The paper also examines the main safeguards that financial institutions should take to ensure their cyber security. The role of technologies, proactive monitoring, creating a culture of cyber security and other factors in ensuring the safety and stability of financial systems is analyzed. In addition, the paper examines current trends in cyber security and innovative approaches to protecting financial institutions from complex and distributed threats. It highlights the importance of cross-sector collaboration and information sharing for early detection and prevention of cyber threats. An important aspect of the paper is the emphasis on the need to constantly update and improve cyber security strategies, as threats are constantly evolving and financial institutions must be ready to respond to new challenges. The conclusions emphasize the fact that the financial sector plays a key role in maintaining the economic liquidity and functionality of the state. Cyber-attacks that cause service disruptions or data loss can lead to irreparable losses in financial activity, which will have a negative impact on the global economy. In addition, cyber threats can undermine the confidence of customers and investors, which, in turn, will lead to an outflow of assets and a decrease in the reputation of the financial institution. That is why the financial sector is subject to strict legal regulation and standardization of the cyber security system. Failure to comply with these requirements may result in sanctions and fines, as well as the loss of relevant licenses and permits.