2018 Housing Summit

Cybersecurity in a Changing Threat Landscape

As companies rely more on cloud services and third-party providers to do business, they need to have a clear understanding of the risk environment. Learn how you can protect against cyber threats and keep sensitive data safe.
August 23, 2018

Businesses, particularly those in the mortgage industry, are finding it increasingly important to offer an effective, easy-to use digital platform for their customers. As more business processes go digital, companies need to evaluate their cybersecurity practices and set up controls to protect sensitive information. Today’s threat landscape is changing—bad actors are using more sophisticated measures to target entire industries to gain control of businesses, steal sensitive information and disrupt supply chains.

Whether you are doing more business in the public or private cloud, starting to look to emerging technologies to improve business or relying on mobile channels, you can increase awareness of cyber threats and protect yourself and your financial data.

Poll: Given the increased dependency on digital platforms, clients have seen an increase in investment in cybersecurity.

A bar chart that shows that 65% of clients have seen a substantial increase in cybersecurity investment and 35% have seen a moderate increase in investment.

65% of clients have seen a substantial increase in cybersecurity investment and 35% have seen a moderate increase in investment.


Security in the Cloud

As companies look for ways to reduce back-office costs, they’re turning to the cloud environment to store and manage data, streamline processes and run business applications. There are clear benefits to using the cloud—including speed to market—but it’s also important to manage the risks.

  • Many business owners see that third-party relationships represent a cyber vulnerability. Even if you’re not directly putting client data on the cloud yourself, your suppliers may be. You must truly understand where your data lives and where it goes once it’s in the hands of a third party.
  • Your security team in a post-cloud environment might look different from your team pre-cloud. These roles are actually not the same and, while some of the same concepts might apply, the approach to creating a secure public cloud environment is very different.
  • It’s imperative that your security team understands your business operations and the threat environment. Do they know where the sensitive data files are stored and how they’re protected?
  • Make sure your technology team is considering business resiliency when building out the cloud environment. Are you able to move between cloud environments, or are you locked into a single provider? While cloud ecosystems have matured in recent years, they can have outages that could significantly disrupt business functions.


What You Should Know

To get more comfortable in the public cloud environment, start with less sensitive data. This allows your security and technology teams to gain learnings while balancing risk.


Mobile-First Environment

More customer interactions are taking place on mobile today than any other channel. In the financial industry, banking transactions that used to require phone calls and in-person meetings can now be done on a mobile device. There are a few best practices to keep in mind when designing banking solutions for mobile:

  • Consider the size of a mobile display and decide what information is really needed in the application, and why. Re-engineer the business process before moving it to mobile to ensure you’re providing an optimal and secure experience.
  • Think about how the mobile application is protected. There are technologies that can help integrate security into your mobile applications.
  • Mobile devices are increasingly being used for authentication, with the latest devices having touch and face ID, sophisticated camera technology, location detection, and e-signature capabilities. Mobile will be used more and more as a security device.


What You Should Know

Mobile devices are increasingly being used to reduce client friction points. Mobile platforms can potentially deliver both a secure control environment and a frictionless client experience.


Poll: From a fraud perspective, which payment type worries you most?

A bar chart that shows poll results: when it comes to payment fraud, clients are worried about checks (13%), card (27%), ACH (7%) and wires (53%).

When it comes to payment fraud, clients are worried about checks (13%), card (27%), ACH (7%) and wires (53%).


Emerging Technologies

There’s been a lot of hype around emerging technologies such as machine learning and big data in the housing market. They can be incredibly powerful tools. Just in the last few years, these technologies have shortened the amount of time to originate a loan—from 60 to 90 days to just hours. In the credit market, predictive algorithms are helping inform credit decisions. The mortgage industry is ripe for disruption, and with the growth of computing power and data storage, there is a lot of potential to automate processes and improve the customer experience.


What You Should Know

While data can be harnessed in powerful ways, always think about what the benefit is for the customer using that data. Be sure you know where the data is stored and who has access.


Rohan Amin is Chief Information Security Officer and Chief Technology Control Officer for J.P. Morgan Chase. Rohan leads the team that protects the firm and its customers, clients, employees and partners from cybersecurity threats. Anish Bhimani is Chief Information Officer for Commercial Banking at J.P. Morgan Chase. He has global responsibility for the technology environment supporting the Commercial Bank, a $9 billion business serving more than 24,000 clients nationally.

The material contained herein is intended as a general market and economic commentary, in no way constitutes JPMorgan Chase research and should not be treated as such. In no event shall JPMorgan Chase nor any of its directors, officers, employees or agents be liable for any use of, for any decision made or action taken in reliance upon, or for any inaccuracies or errors in or omissions from, the information herein. Further, the information and any views contained herein may differ from that contained in JPMorgan Chase research reports.

The above summary/prices/quotes/statistics have been obtained from external sources. JPMorgan Chase does not guarantee their accuracy, completeness or reliability.

Used with permission. The opinions expressed herein are those of the author and do not necessarily reflect that of JPMorgan Chase. JPMorgan Chase believes the information contained in this material to be from reliable sources but make no representation or warranty as to its accuracy or completeness.


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