Banking Security: Safeguarding Digital Assets with IPS and IDS Systems

Imagine a bank having a comprehensive database containing sensitive information about its customers. However, one would not want to hear the words “database” and “cyber-attack” in the same sentence. This database holds critical information for both the business and customers, and it must prevent the exploitation of security vulnerabilities and unauthorized access to this information.

At this crucial point, two essential systems come into play to ensure cybersecurity and detect any intrusion: IPS (Intrusion Prevention System) and IDS (Intrusion Detection System).

Part 1: Intrusion Prevention System (IPS) — Your Bank’s Secure Fortress

IPS, as the name implies, is a system designed to protect your bank’s applications, networks, and other critical systems from cyber-attacks.

Think of IPS as a robust fortress surrounding your network. Inside this fortress, there are many experienced security guards preventing unauthorized access to your applications, databases, or any data-processing system. These guards patrol the perimeter and control access, allowing only authorized individuals to enter and exit. These security guards are constantly active, even performing seemingly minor tasks.

How IPS Works:

IPS is often placed behind a Web Application Firewall (WAF) because an IPS acts as a “detector” identifying suspicious activities. When a threat is detected, it is reported to the responsible parties, and the threat is marked as “processed.”

Once a threat is successfully marked as “processed,” the responsibility falls on the administrator to decide what action to take. Administrators typically eliminate the threat or inform security engineers about the incident. Once resolved, the application can continue functioning as usual — a situation your customers might not even notice. Pretty cool, isn’t it?

Types of IPS:

IPS is generally categorized based on usage purposes, with each type being useful for specific objectives:

Host-based Intrusion Prevention Systems (HIPS)

Defends a single server, enhancing the security of the main machine by focusing on safeguarding the data, applications, and operating system on your computer. It intervenes when attacks are directed at a specific computer or server, detecting and neutralizing these attacks. HIPS enhances the security of the main machine, minimizing the risks posed by computer hackers and malicious software.

Network-based IPS (NIPS)

Focuses on detecting and preventing suspicious activities across the entire network. It uses information collected through devices monitoring traffic passing through the network. NIPS provides comprehensive protection against known and unknown threats using various techniques such as signature-based detection methods, anomaly monitoring, and behavior analysis. It also automatically activates prevention mechanisms when detecting attacks, offering an effective strategy in the fight against network security threats.

Wireless IPS

Typically installed on Wi-Fi networks, monitoring unauthorized access in that network.

Network Behavior IPS

Identifies threats based on monitoring network behavior, detecting abnormal activities such as applications creating unusual traffic. Networks typically operate with standard behaviors, and movements outside these standards should be treated with suspicion. Network Behavior IPS continuously monitors network traffic, analyzing unusual movements to enhance security effectively.

The choice of IPS is generally made based on what needs to be protected.

Is IPS a Must-Have?

Think about getting an IPS if:

Your security folks keep telling you that your networks, web apps, or other data systems aren’t up to snuff in terms of protection.

Dealing with past solutions like Intrusion Detection Systems or web application firewalls has been a bit of a headache.

Your organization has had the unfortunate experience of a data breach, and you’re on the lookout for solid protection to prevent future incidents.

Part 2: Intrusion Detection System (IDS) — Your Bank’s Sentinel

An IDS is designed to detect any intrusion and leave subsequent actions to you.

An IDS stands out as a fundamental defense mechanism in cybersecurity. This software or hardware system essentially monitors a network, focusing on detecting security vulnerabilities and attacks to safeguard a bank’s digital assets.

How IDS Works:

IDS primarily focuses on detecting attacks against various applications. It continually monitors bank networks, identifying deviations from normal network traffic. This allows the security team to quickly detect potential threats. These systems typically function similarly to web application firewalls, capturing the “signatures” (flags) of known attack vectors or analyzing patterns of deviation from “normal” traffic.

Key Differences Between IDS and IPS:

Actionability:

• IDS: Detects threats and notifies administrators, requiring a decision-making process for action.
• IPS: Detects threats and automatically takes action to prevent attacks.

Real-time Activity:

• IPS: Monitors real-time traffic and adopts a proactive approach, preventing attacks immediately.
• IDS: Observes “older” traffic, so its response is not real-time, but it detects attacks.

Update Frequency:

• IPS: Requires more frequent updates due to the evolving nature of threats.
• IDS: Updates may be less frequent since it only detects and lacks prevention capability.

Placement:

• IPS: Can be placed before or after a firewall.
• IDS: Should be placed after a firewall.

Zero-Day Attacks:

• IPS: Can both detect and prevent.
• IDS: Can only detect, lacking prevention capability.

Protecting Customer Information and Financial Transactions:

IPS and IDS can integrate specialized monitoring policies to protect banks’ customer information and financial transactions. This helps safeguard sensitive data from malicious attacks.

Protocol Diversity:

Banking systems use various network protocols. IPS and IDS can effectively monitor and detect on these different protocols.

Managing Heavy Traffic:

Banks often encounter heavy network traffic. IPS is scalable and can effectively handle this density.

Integration and Training:

IPS and IDS can be integrated with other security measures, and their effectiveness can be supported by regular training and update processes for the security team.

IPS and IDS are key components that help banks establish a robust defense against cyber threats. Customizing these systems specifically for bank security provides effective protection against industry-specific threats.