10 cybersecurity best practices for financial services firms
Updated: Sep 26
Financial services firms handle sensitive data, valuable assets and critical transactions every day. This makes them a prime target for cyberattacks, phishing and data breaches.
For MSPs, protecting these businesses requires more than installing security software. Firms need consistent controls, monitoring and a clear approach to managing cyber risk.
Alternit One supports businesses with managed IT and cybersecurity services designed to improve security and keep technology running reliably.
In this guide, we explore 10 cybersecurity best practices for financial services that MSPs can apply to strengthen their clients' security.
Why cybersecurity matters
Financial organisations hold valuable information, making them attractive targets for cybercriminals. Their reliance on cloud services, remote access and third-party providers can also increase their attack surface.
According to IBM's Cost of a Data Breach Report 2024, the average cost of a data breach in the financial industry was US$6.08 million. This was higher than the global average of US$4.88 million.
Verizon's 2025 Data Breach Investigations Report analysed more than 22,000 security incidents and 12,195 confirmed breaches. The report includes a dedicated Finance and Insurance industry analysis.
These findings highlight why financial firms need proactive security controls and regular risk reviews.
1. Use multi-factor authentication
Passwords alone provide limited protection against account compromise. Multi-factor authentication (MFA) adds another verification step before users gain access.
MSPs should prioritise MFA for:
Email accounts
Cloud applications
Remote access
Administrator accounts
Financial platforms
Regularly review MFA settings and remove unused accounts to reduce unnecessary access.
2. Apply least-privilege access
Employees should only access the systems and information required for their roles. This principle, known as least privilege, can limit the impact of compromised accounts.
MSPs should regularly review:
User permissions
Administrator accounts
Third-party access
Shared accounts
Former employee accounts
Remove unnecessary permissions quickly when roles change or employees leave.
3. Keep systems patched
Outdated software can leave known vulnerabilities exposed. Regular patching should therefore form part of every financial firm's security programme.
MSPs can help by:
Monitoring vulnerabilities
Deploying security updates
Prioritising critical patches
Testing major updates
Identifying unsupported software
A structured patching process reduces opportunities for attackers to exploit known weaknesses.
4. Protect sensitive data
Financial firms manage customer information, payment details and confidential business records. Protecting this data requires controls across its entire lifecycle.
Businesses should understand:
Where sensitive data is stored
Who can access it
How it is transmitted
How long it is retained
When it should be deleted
Encryption and strong access controls can help reduce the risk of unauthorised data exposure.
5. Maintain reliable backups
Backups provide an important recovery option following ransomware, system failure or data loss. However, backups must be tested to confirm that they can actually be restored.
A reliable backup strategy should include:
Automated backups
Multiple backup locations
Appropriate retention periods
Access restrictions
Regular recovery testing
MSPs can monitor backup jobs and investigate failures before they become a serious business problem.
6. Strengthen email security
Phishing attacks often target employees rather than technical systems. Strong email protection should therefore combine technology with employee awareness.
MSPs should consider:
Email filtering
Anti-phishing protection
Malware scanning
Attachment controls
Security awareness training
Clear reporting procedures
Employees should also know how to report suspicious messages quickly.
7. Monitor systems continuously
Security monitoring helps businesses identify suspicious activity before it develops into a larger incident.
MSPs can monitor:
Endpoints
Networks
Login activity
Security logs
User activity
Security alerts
However, monitoring is only useful when alerts are reviewed and acted upon. Clear escalation procedures are essential.
Need stronger security monitoring? Alternit One can help businesses manage their IT environment with proactive support and security-focused services. Explore Alternit One
8. Secure third-party access
Financial firms often rely on external technology providers and business partners. However, third-party access can create additional security risks.
Verizon's 2025 DBIR reported that third-party involvement in breaches had increased to 30%.
MSPs should review:
What suppliers can access
Why access is required
How access is protected
Whether activity is monitored
How access can be removed
Third-party access should be limited to what is necessary and reviewed regularly.
9. Test the incident response plan
Even strong security controls cannot eliminate every cyber risk. Financial firms need a clear plan for responding to incidents.
The plan should define:
Who reports incidents
Who investigates them
Who manages containment
How stakeholders are contacted
How systems are recovered
MSPs should also run tabletop exercises. These tests can identify communication gaps and unclear responsibilities before a real incident occurs.
NIST's Cybersecurity Framework 2.0 provides a structured approach to managing cybersecurity risk across areas including governance, protection, detection, response and recovery.
10. Review security regularly
Cybersecurity needs to evolve as technology and threats change. Regular reviews help businesses identify gaps and prioritise improvements.
MSPs should review:
Security policies
User access
Endpoint protection
Vulnerabilities
Backup performance
Incident response
Third-party access
Regular reviews also help businesses focus security spending on their most important risks.
Build a stronger security foundation
Financial firms need proactive cybersecurity to protect sensitive data and critical systems. From MFA and access controls to patching, backups and continuous monitoring, every layer matters.
MSPs can help businesses manage these controls, reduce security gaps and respond to threats more effectively.
Alternit One provides proactive IT and cybersecurity support to help financial firms strengthen their security, manage risks and protect critical operations.
Ready to improve your organisation's IT security? Talk to Alternit One
