Financial services firms handle vast amounts of sensitive data and are prime targets for cybercriminals. To protect themselves and their employees, many firms are turning to domain name system (DNS) filtering as a key component of their cybersecurity strategy. DNS filtering has become critical to the financial services industry as DNS-based attacks are increasing.
According to one report, the banking industry witnessed a 4,500% increase in daily DDoS attacks in 2023.
This article explores the importance of DNS filtering as well as how financial services companies can leverage the technique to enhance their security posture.
What is DNS Filtering?
DNS filtering is a cybersecurity technique that blocks access to malicious or unwanted websites by intercepting DNS queries.
When a user tries to access a website, their device sends a DNS query to resolve the domain name to an IP address. A DNS filtering system intercepts this query and checks the requested domain against predefined policies or blocklists. If the domain is deemed safe, the query is allowed to proceed.
If it’s flagged as malicious or unwanted, the DNS filter blocks the request and often displays a warning page instead.
The process involves several key components:
- DNS Resolver: A specialized server that intercepts DNS queries and applies filtering policies.
- Blocklists and Allowlists: Databases of known malicious domains or approved safe domains.
- Content Categories: Groupings of websites based on their content type (e.g., social media, gambling, adult content).
- Filtering Policies: Rules that determine which domains or categories should be blocked or allowed.
These measures can be implemented at various levels of the organization. For example, it can be implemented network-wide, so that the entire corporate network is filtered from malicious websites. It can even be installed on individual devices for protection both on and off a corporate network. Finally, firms can use cloud-based filtering services, which can enhance scalability and be easier to deploy.
It’s important to note that DNS filtering is not infallible. Sophisticated attackers may use techniques like DNS over HTTPS (DoH) to bypass traditional DNS filters. To address this, financial firms should implement comprehensive security strategies that include DNS filtering alongside other protective measures such as firewalls, antivirus software, and employee training programs.
Why DNS Filtering is Crucial for Financial Services
Domain name system filtering is particularly crucial in the financial services sector due to the sensitive nature of firms’ data and the high frequency of targeted attacks. The rapid digitization of financial services and increased reliance on cloud-based solutions have also made risk management a greater challenge, as they have expanded the digital attack surface, creating more opportunities for malicious actors to exploit vulnerabilities.
According to a report by Global Banking & Finance Review, over 90% of financial institutions suffered from at least one DNS attack in the previous year, with an average of 9.5 attacks per organization.
These attacks can have severe consequences, including:
- Data Breaches: DNS attacks can lead to unauthorized access to sensitive financial information and customer data.
- Business Disruption: Organizations that have suffered a DNS attack have experienced severe application downtime.
- Financial Losses: The high cost of DNS attacks can significantly impact a financial institution’s bottom line and market position.
- Regulatory Penalties: Failure to protect sensitive data can result in severe fines from regulatory bodies.
Overall, DNS filtering provides an additional layer of security that can protect against phishing attempts, prevent employees from accessing compromised websites, and help maintain regulatory compliance.
“The high cost and frequency of DNS attacks can significantly impact a business’s continuity plan in the market, and even hinder their ability to sustain in the market for a long time,” the report said.
The Benefits of DNS Filtering for Financial Services Firms
Domain name system filtering should be just one step in a comprehensive cybersecurity framework, as cyberattacks are becoming more complex. Nonetheless, implementing DNS filtering provides a proactive and comprehensive approach to safeguarding networks. It also comes with key advantages like the following:
Proactive Threat Prevention
Implementing DNS filtering proactively stops cyber threats by blocking access to known malicious domains. This approach prevents threats from entering the network or reaching end-user devices, substantially reducing the risk of infection or data breaches.
By stopping threats at their source, DNS filtering provides an essential layer of defense that complements other security measures. This strategy can be combined with other security assets, such as SOC as a Service functionalities, to improve overall security.
Enhanced Visibility
DNS filtering solutions offer enhanced visibility through detailed logs and analytics. These insights enable security teams to monitor attempted connections to malicious sites, providing essential data that can be used for further investigation and improvement of security protocols.
This visibility helps organizations understand potential threats and adapt their defenses accordingly.
Regulatory Compliance
DNS filtering assists organizations in meeting various regulatory compliance requirements. By preventing access to prohibited content and safeguarding sensitive data, it ensures adherence to legal and industry standards.
Improved Productivity
Organizations can enhance productivity by using DNS filtering to block access to non-work-related sites. This reduction in distractions allows employees to focus better on their tasks, maximizing efficiency.
More importantly, this approach to security reduces the chances of a cyber incident that could severely impact productivity.
Protection for Remote Workers
When implemented on devices and remotely accessible networks, DNS filtering extends protection to employees working outside the office. This capability is increasingly important in today’s hybrid and remote work environments, where traditional perimeter security measures may not be sufficient.
Implementing DNS Filtering in Financial Services
Implementing domain name system filtering in financial institutions requires a strategic approach to ensure comprehensive protection without disrupting critical operations. Here are the key steps and considerations for effective implementation:
- Choose the right DNS filtering solution: Select a provider that offers robust security features, real-time threat intelligence, and a global network to minimize latency. Look for solutions specifically tailored to the financial sector, such as those offering compliance-focused reporting and integration with existing security infrastructure.
- Define filtering policies: Establish clear policies for content categories to block, including known malicious domains, phishing sites, and categories that violate acceptable use policies. Customize these policies based on different user groups within the organization, such as stricter controls for those handling sensitive financial data.
- Deploy across all endpoints: Implement DNS filtering not just on the network level, but also on individual devices through roaming clients or agents. This ensures protection extends to remote workers and mobile devices accessing financial systems outside the office.
- Integrate with existing security stack: Coordinate DNS filtering with other security measures like firewalls, antivirus software, and email filtering to create a layered defense against cyber threats.
- Configure for compliance: Align DNS filtering policies with regulatory requirements such as GDPR, PCI DSS, and industry-specific regulations. Ensure the solution provides detailed logging and reporting capabilities to demonstrate compliance during audits.
- Implement secure DNS protocols: Consider adopting DNS over TLS (DoT) or DNS over HTTPS (DoH) to encrypt DNS traffic, preventing eavesdropping and tampering. However, ensure that the chosen DNS filtering solution can effectively manage encrypted DNS traffic to maintain visibility and control.
- Establish a whitelisting process: Create a streamlined procedure for reviewing and approving access to legitimate sites that may be inadvertently blocked, minimizing disruption to business operations.
- Conduct employee training: Educate staff about the importance of DNS filtering, how it works, and the potential risks of bypassing it. This helps foster a security-conscious culture within the organization.
- Monitor and adjust: Regularly review DNS filtering logs and reports to identify emerging threats, adjust policies as needed, and ensure the solution is effectively protecting against the latest cyber risks targeting the financial sector.
DNS Filtering: A Critical Cybersecurity Tool
Domain name system filtering is a powerful tool for financial services firms looking to enhance their cybersecurity posture. By blocking access to malicious domains at the DNS level, organizations can significantly reduce their exposure to various cyber threats.
While implementation requires investment and may present some challenges, the benefits in terms of improved security, compliance, and productivity make DNS filtering an essential component of a comprehensive cybersecurity strategy.
To learn more about how you can protect your organization, contact us at Option One Technologies today.
