Ransomware is malware that encrypts data on a device, making it difficult to recover without the ability to restore from backups or a decryption key that may (or may not!) be provided by a cybercriminal after the ransom is paid. According to Cybercrime Magazine, global ransomware costs are predicted to exceed $265 billion by 2031, when businesses, consumers and devices could be attacked every two seconds. Ransomware is a particularly menacing form of malware because attackers often threaten to publicly disclose stolen company or customer information if the ransom isn’t paid.
The R-SAT 2.0 tool helps financial institutions assess how well their procedures and processes are designed to reduce the risk of becoming a ransomware victim. It was developed in collaboration with the Bankers Electronic Crimes Task Force, state bank regulators and the U.S Secret Service and updated in October 2023 to address today’s banking environment.
The importance of proper use of R-SAT was validated in a study conducted by the Conference of State Bank Supervisors in collaboration with several state banking departments to identify lessons learned from state-chartered banks and credit unions that experienced ransomware attacks from January 1, 2019 to December 31, 2022. The study found three significant findings:
- R-SAT: the majority had not completed the R-SAT and, therefore, didn’t use it to guide initiatives to reduce ransomware risks. However, all institutions began using it fully after their ransomware incident.
- Multi-factor Authentication (MFA): When properly configured and implemented, MFA makes a difference. While MFA may seem to be a fairly simple security feature, the various forms of MFA require thorough understanding of their features and benefits in relation to each financial institution’s unique situation, operations and risks. The R-SAT now includes expanded sections to address MFA.
- Fast Identity Online Authentication (FIDO): Using public key cryptography, FIDO provides more security than traditional password-based authentication where it’s required, such as online and mobile banking. FIDO is mentioned in the latest FFIEC guidance, which is gaining popularity in the banking industry.
Download R-SAT 2.0 >
https://www.csbs.org/sites/default/files/other-files/R-SAT%202.0%20%281%29_0.pdf
To learn how proper and consistent implementation of R-SAT and other risk management techniques can help protect your financial institution from damaging ransomware attacks, contact your Rehmann advisor or Jessica Dore at [email protected] or (989) 797-8391.
