Utimaco Urges Cryptography Security for Risk Mitigation in Banking and Finance
Global provider of IT security solutions, Utimaco, calls for Malaysian businesses in the banking, financial service, and insurance (BFSI) sector, to consider the critical role of cryptographic security in protecting sensitive customer data.
Hardware Security Modules (HSM), a method of protecting information by transforming it into an unreadable format, is a key strategy in enhancing data security as well as cybersecurity risk mitigation and compliance, especially with the more prevalent use of technology in banking and finance. The global HSM market is estimated to grow from USD 1.2 billion in 2023 to reach USD 2.3 billion by 2028 due to stringent data security compliances around the world among others, according to a Markets and Markets report.
HSMs provide a secure and reliable hardware-based solution for performing cryptographic operations, such as encryption, decryption, and digital signatures, and are essential for protecting sensitive data and fulfilling compliance mandates. In the updated Risk Management in Technology (RMiT) Framework by Bank Negara Malaysia (BNM), HSM was one of the methods listed, that businesses can adopt when establishing a strong cryptography policy as it supports encryption or decryption computation in a protected environment.
“In today’s digital era, businesses are increasingly relying on cloud services for their computing needs, leading to a surge in the volume of sensitive data being transferred and stored on cloud platforms. This shift, coupled with the rise of cyber threats, has necessitated the use of high-performance HSMs for efficient user and device authentication, data access control, and data privacy protection. Ensuring compliance with local laws and BNM regulations is critical to safeguarding this sensitive data and maintaining trust with customers, in line with the government’s aspirations to enhance Malaysia’s preparedness against the threat of cyber-attacks,” said Eddie Yong, Country Manager, ASEAN, Utimaco GmbH.
The government’s attention to this issue is driven by a combination of factors: national security concerns, economic impact, and the need to maintain public trust in digital services as highlighted in a report by CyberSecurity Malaysia. The report also revealed that 842.84GB of data was leaked in the first half of 2023, with the banking sector accounting for 62.46GB of the total data loss.
Securemetric Bhd, Utimaco’s local digital security partner in Malaysia, urges local players that use authentication to grant users access to different company applications and services, to also factor in encryption to safeguard against unauthorised access and ensure secure communication between clients, partners and the service.
“Given the swift nature of transactions, payments, and various processes, there is a critical need for robust security with real-time processing capabilities, precisely delivered by high-performance hardware security modules. Through the support of our expert partners like Utimaco, coupled with our own in-depth knowledge of the market and understanding of the specific needs of end-users, we can offer tailored HSM solutions that not only ensure compliance with regulations, but also empower businesses to strengthen their cybersecurity posture, and build a more secure digital future for our local BFSI sector,” said Edward Law, Chief Executive Officer, Securemetric Bhd.
