Why Financial Institutions Need an NDR Solution

Introduction

Banks, investment firms, and insurance companies are among the most targeted organizations for cybercriminals due to the vast amount of sensitive financial data they handle. As cyber threats become more sophisticated, traditional security tools like firewalls and antivirus software are no longer enough to protect financial institutions.

Network Detection and Response (NDR) has emerged as a critical security solution, providing real-time threat detection, automated response mechanisms, and continuous monitoring to safeguard networks. Implementing an NDR solution helps financial organizations prevent data breaches, meet regulatory compliance requirements, and protect customer trust.

This article explores the increasing cybersecurity challenges financial institutions face and why adopting an NDR solution is essential for enhanced security and operational resilience.

The Growing Cyber Threats in Financial Institutions

Financial institutions process enormous amounts of sensitive data, including:

• Personally Identifiable Information (PII) (e.g., customer names, addresses, Social Security numbers).
• Financial records (e.g., bank account details, credit card numbers, loan information).
• Transactional logs that record financial activities.

Because of this, cybercriminals continuously target the financial sector using advanced attack methods, including:

1. Advanced Persistent Threats (APTs)

APTs are sophisticated, long-term attacks where hackers gain unauthorized access to a network and steal sensitive data over time. These attacks often go undetected for months, causing significant damage.

2. Ransomware

Ransomware encrypts critical financial data, blocking access to vital systems until the attacker is paid a ransom. In some cases, attackers also threaten to leak stolen data, further harming financial institutions.

3. Phishing Attacks

Cybercriminals use deceptive emails and messages to trick employees into sharing login credentials or downloading malware. These attacks often serve as entry points for larger security breaches.

4. Insider Threats

Employees or business partners with system access can misuse their privileges to steal data or sabotage operations, either intentionally or due to negligence.

Given these threats, traditional security measures alone—such as firewalls and endpoint protection—are no longer effective. NDR solutions bridge this security gap by using AI-driven threat analytics to detect and stop cyber threats in real time.

Key Benefits of NDR for Financial Institutions

1. Real-Time Threat Detection

Unlike traditional security tools that rely on predefined attack signatures, NDR continuously analyzes network traffic for anomalies. By using Artificial Intelligence (AI) and Machine Learning (ML), NDR can:

• Detect zero-day attacks (new, unknown threats).
• Identify patterns of malicious activity that bypass conventional security tools.
• Provide instant alerts to security teams for a faster response.

2. Enhanced Network Visibility

Financial institutions operate complex IT environments that include on-premises servers, cloud infrastructure, and third-party integrations. NDR provides full visibility into network traffic, allowing security teams to:

• Monitor all data movements across the network.
• Detect unauthorized access to sensitive financial data.
• Identify and respond to security threats before they cause damage.

3. Proactive Threat Hunting

Many security tools react after an attack has already occurred. NDR, on the other hand, proactively searches for suspicious behavior before a full-scale breach happens.

Security teams can use NDR to:

• Analyze network activity for hidden threats.
• Track unauthorized lateral movement within the network.
• Block threats before they escalate into major breaches.

4. Faster Incident Response and Mitigation

The financial industry operates in a high-stakes environment where cyberattacks must be neutralized quickly. NDR automates incident response by:

• Sending real-time alerts to security teams.
• Providing forensic evidence to investigate attacks.
• Isolating and containing threats before they spread.

Additionally, when integrated with Security Information and Event Management (SIEM) and Security Orchestration, Automation, and Response (SOAR) platforms, NDR accelerates threat response times and minimizes operational disruption.

5. Ensuring Regulatory Compliance

Financial institutions must comply with strict security regulations, including:

• General Data Protection Regulation (GDPR) (Europe)
• Payment Card Industry Data Security Standard (PCI DSS) (Global)
• Sarbanes-Oxley Act (SOX) (U.S.)
• Federal Financial Institutions Examination Council (FFIEC) Guidelines

NDR solutions help meet compliance requirements by:

• Providing audit logs for regulatory reporting.
• Continuously monitoring network traffic for security violations.
• Automating compliance enforcement by identifying and mitigating risks.

By implementing NDR, financial institutions can avoid costly penalties for non-compliance and reduce the risk of regulatory action.

6. Reducing Data Breach Costs

On average, financial organizations take months to detect a breach, leading to massive financial and reputational losses. According to IBM, the average cost of a data breach in the financial industry exceeds $5.9 million.

NDR minimizes financial losses by:

• Reducing the time to detect and respond to attacks.
• Preventing ransomware attacks before they encrypt critical data.
• Protecting customer trust and brand reputation.

How NDR Works in Financial Institutions

NDR solutions combine multiple security techniques to protect financial networks. Here’s how they operate:

1. Continuous Network Traffic Monitoring: NDR collects and inspects raw network data from multiple sources (on-premises, cloud, third-party integrations).
2. Behavioral Analytics with AI: AI-driven models analyze network activity to identify abnormal patterns.
3. Automated Incident Response: NDR provides real-time alerts and containment actions to stop threats.

Choosing the Right NDR Solution

Before selecting an NDR solution, financial institutions should evaluate:

• AI & ML Capabilities: Does the solution adapt to new threats?
• Integration with SIEM & SOAR: Can it work with existing security infrastructure?
• Cloud & On-Premises Monitoring: Does it cover all areas of the network?
• Automated Threat Mitigation: Can it quickly contain and neutralize threats?
• Regulatory Compliance Features: Does it provide audit logs and compliance reports?

Conclusion

As cyber threats evolve, financial institutions must adopt advanced security solutions to protect customer data, meet compliance requirements, and prevent costly breaches. NDR provides real-time threat detection, full network visibility, and automated response capabilities—far beyond what traditional security tools offer.

By investing in Fidelis NDR solutions, financial organizations gain stronger security, faster incident response, and regulatory compliance, ensuring they stay ahead of cyber threats in today’s digital financial landscape.