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Treasury Management
Digitalisation

Treasury Megatrends in 2024: The boom of cybersecurity

November 13, 2024

In a world where corporate treasury is increasingly intertwined with digital technology, 2024 stands as a critical year in the fight against an invisible yet devastating adversary: cyberattacks. Cybersecurity, once a term largely confined to IT departments, has now taken centre stage in the financial landscape as a major concern.

Cyberattacks have reached unprecedented levels of sophistication, employing advanced tactics that challenge even the most robust security systems. Armed with artificial intelligence and machine learning, cybercriminals are creating ever-evolving threats capable of bypassing traditional defences and threatening the financial integrity of companies.

Given these circumstances, cybersecurity will remain one of the top priorities for treasurers and finance teams in 2024, especially in sensitive areas such as liquidity management. Companies must adapt to this constantly evolving threat landscape, prioritising investment in advanced security systems and adopting a comprehensive approach that includes both technology and staff training.

Cybersecurity, a growing concern for finance teams

The state of Cybersecurity 2023 report from ISACA reveals a growing concern in the cybersecurity space, with cybercriminals becoming increasingly active. Specifically, 48% of organisations reported a rise in cyberattacks compared to the previous year.

In this context, the EY 2023 Global Cybersecurity Leadership Insights report, which analyses the situation in 25 countries, shows that organisations face an average of 44 significant cyber incidents per year. It also highlights that approximately 75% of these organisations take six months or more to detect and respond to a cybersecurity incident.

This reality is of particular concern for corporate finance departments, due to the accelerated digitisation of financial operations, the handling of critical financial data and because they are a particularly attractive target for cybercriminals. This increases exposure to cybercriminals.

This digital shift has heightened the exposure of finance teams to cyber threats, and the increasing sophistication of attack methods requires specialised attention and cybersecurity measures to ensure the integrity and confidentiality of financial information.

For these reasons, cybersecurity has become a growing concern for financial teams due to the accelerated digitisation of financial operations, which increases exposure to cyberattacks. In addition, the increasing sophistication of attack methods and the constant evolution of cyber threats demand specialised cybersecurity and prevention attention and protection to ensure the integrity and confidentiality of financial information.

In line with this growing demand for security, the ‘Diagnosis of Talent in Cybersecurity’ of the National Cybersecurity Institute (INCIBE) highlights a significant increase in the need for professionals specialised in the field. By 2024, it is projected that in Spain, the demand for cybersecurity experts will exceed 83,000 jobs, highlighting the growing importance of this area in today's business landscape.

Cybersecurity risks facing companies in 2024

In 2024, businesses will face increasingly complex and varied cyber security risks, though not significantly different from those of years past. Cyber-attacks will become more sophisticated, exploiting emerging vulnerabilities in advanced technologies. Concerns will focus on the following risks:

  • Advanced ransomware attacks: Ransomware encrypts user data, blocking access until a ransom, usually in cryptocurrency, is paid. These attacks are expected to grow more complex, affecting not only IT infrastructure but also critical operating systems. Ensuring rapid data recovery through robust backup systems will be increasingly essential.
  • Evolving phishing and social engineering techniques: Phishing, a form of internet fraud, sees attackers send messages or emails purporting to be from legitimate sources, such as banks, to deceive recipients into divulging personal or confidential information. Phishing attacks are becoming more complex, utilising techniques such as deepfake technology and personalisation to deceive employees and gain access to vulnerable systems.
  • Vulnerabilities in IoT and mobile devices: The increasing use of massively connected devices and mobile applications in business operations will expand attack surfaces and create new threat vectors
  • Challenges in Identity and Access Management: as companies adopt hybrid and remote working policies, identity and access management will become more complicated, requiring more robust and adaptive solutions

How to improve cybersecurity in corporate treasury in 2024?

Treasury is one of the most important departments, holding the most sensitive information of any company. The control of cash, access to business bank accounts, and certain information about clients and suppliers make it a critical function that needs special protection.

This makes it essential to establish advanced cybersecurity strategies in treasury. Some of the most relevant actions to achieve this are as follows:

  • Multi-factor authentication: Implementing a system that requires multiple forms of verification (such as a password, fingerprint, or text message) to access critical systems, reducing the risk of unauthorised access. There are many applications to do this easily, such as Google Authenticator or Microsoft Authenticator
  • Data encryption: Using advanced encryption algorithms to encrypt financial data, both stored and during transmission, ensuring that only authorised individuals can access it.
  • Cybersecurity education and awareness: Providing regular training to staff on the latest attack methods and best security practices, fostering a culture of security awaresness throughout the organisation. Additionally, it is essential to raise awareness about the importance of keeping computers updated and properly protected
  • Strict access control: Establishing strict policies to control who can access sensitive financial information, limiting access to authorised employees only.
  • Continuous networking monitoring: Implementing monitoring tools to detect suspicious or unauthorised activity in real-time, enabling a quick response to potential security breaches.
  • Regular backups: Performing regular backups of critical information to ensure rapid and effective recovery in case of data loss due to a cyber attack
  • Software updates and maintenance: Ensuring that all security systems and related software are up to date with the latest versions and security patches to protect against unknown vulnerabilities.

Betting on a Treasury Solution: Your Goal for 2024

Adopting a cloud-based treasury platform, such as Embat, is a key strategic decision for companies, especially when it comes to cash management.

These SaaS (Software as a Service) platforms not only optimise financial operations and liquidity management but also strengthen the protection of sensitive data. By doing so, they incorporate vital features for information security, such as robust data encryption and access controls. Furthermore, they ensure the integrity and security of financial information, a critical aspect in an environment where cyberattacks are becoming increasingly sophisticated.

Some of the main reasons to opt for these types of applications include:

  • Automatic updates: Cloud software providers constantly update their systems to protect against the latest security threats. This ensures that your software always has the latest security measures in place.
  • Centralised data security: By storing data in the cloud, information security is centralised. Cloud service providers typically have stronger security protocols than an average company, which can enhance the security of your data.
  • Data recovery: Cloud services offer backup and disaster recovery options. In the event of a security incident, such as a ransomware attack, you can recover your data more efficiently.
  • Compliance with national and international regulations: Cloud service providers often comply with international data security standards and regulations, making it easier for your company to comply with these norms.
  • Reduction of local vulnerabilities: By using cloud software, you reduce the risks associated with local system vulnerabilities, such as physical servers on your premises, with may be more susceptible to physical attacks or system failures.

Conclusions

Ultimately, when looking ahead to the future of treasury, most finance department heads highlight cybersecurity as a primary concern.

Accelerated digitisation and the increasing adoption of financial technologies have increased efficiency and convenience, but have also widened the spectrum of cyber risks.

Firms must be vigilant and proactive, investing in robust cloud security solutions, training their staff in security best practices and maintaining constant vigilance against emerging threats.

Tomas Gil
Gil
CTO @ Embat
Tomás, with a background in telecommunications engineering, began his career in bank connectivity when he took on the role of CTO at Fintonic Latam, before joining Embat.

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