How CFOs Can Prevent Phishing Attacks With Cybersecurity

Chief Financial Officers (CFOs) may not have cybersecurity as an explicit section in their job description, but they can immensely influence digital shields to reduce the likelihood of phishing. Effective cybersecurity methods are a strategic execution of clarity-driven budgeting and self-reflective action. CFOs can observe their organizations and determine an enterprise’s cybersecurity allocations from attentive analytics and industry savvy.

Here are three ways CFOs can prevent phishing attacks using cybersecurity:

1. Invest in knowledge

Training staff will provide the most impactful yet understated ROI when funding cybersecurity initiatives, primarily because most hackers rely on human error for success. Phishing is one of the most present risks to the world’s data, yet most are ill-informed about identifying or responding to potential threats. Companies can provide seminars and informational texts about how to spot fraudulent emails and who to contact if they suspect suspicious activity.

Learn more: How to Stop Your Staff from Opening Phishing Emails

Education can’t stop with the workforce — CFOs must cross-reference spending alongside competition and trends in cybercriminal activity. Researching the answers to these questions will help inform cybersecurity budgets more holistically:

• What global circumstances encourage cybercriminal activity like phishing?
• What companies are avoiding breaches, and how do their cybersecurity budgets look? What is their financial investment in cybersecurity response?
• How much will a CFO spend to recover from a minor, moderate and major security incident? Are CFOs considering related costs, such as publicity, remediation and compensation for those affected?

Industry benchmarks quantify many of these numbers. International turmoil, such as natural disasters and political unrest, increases cybercriminal attacks. The pandemic led to more remote work, increasing vulnerabilities as companies relied on new and unfamiliar technology. CFOs can’t predict the future to quantify this expense, but they can consider it by investing in training opportunities for remote and in-office staff.

Other organizations may have more years of experience or industry insight, so it’s worthwhile to see what competitors are doing to respond to the ever-growing phishing industry. Resources like FBI reports are also valuable for staying informed on how phishing continues to uproot businesses of any size.

Additionally, staying up to date with the news will ground CFOs in how phishing attacks continue to persist, costing companies potentially millions. An increase in mobile device usage and the remote office encouraged the 61% increase in phishing attacks in 2022 alongside other influences — equating to 255 million incidents. Lax preparation could yield poor results, especially as innovations like spear-phishing rise. Prevention requires budgeting for recovery just as much as standard protocol.

2. Know the costs of cutting

Opening up the budget for short-term business goals or quick returns sounds ideal, especially if it’s to recover from an unexpected loss or impulsively please a client. However, taking money away from cybersecurity could mean millions of dollars lost in the future if CFOs aren’t careful.

It’s challenging to feel the weight of a breach unless a CFO and their company have experienced one. CFOs can perform a cost-benefit analysis to quantify an organization’s stability. However, it’s vital not to let the unfamiliarity of an event lead to complacency. Businesses would be more likely to invest finances in cybersecurity if they’ve experienced a hacker’s threats firsthand. However, the costs of dismissing phishing as a threat could lose a company most of its customer base and reputation.

• One of the expenses CFOs may cut is cyber insurance, as premiums will increase with reduced coverage next year. However, it’s an ideal supplement to any cybersecurity risk management outfit because it can offer legal advice in the event of a breach alongside credit monitoring services. Companies may need help to justify the expense as insurance companies respond to rising cybercriminal activity. However, it should be non-negotiable as cyber insurance provides extra assistance analysts don’t inherently perform.
• Another worthy investment is additional cybersecurity staff or white-hat hackers. These highly qualified professionals perform penetration testing and suggest improvements based on cybersecurity strategy and compliance gaps. Employment is a proactive measure since reactively responding to a phishing threat is more expensive.

3. Bridge the gap between the financial and tech sectors

CFOs and cybersecurity analysts share a common goal to make the business succeed, regardless of their product or service. These two departments’ foundational knowledge can cross over, but CFOs can collaborate with analysts to expose susceptibility.

For example, analysts may know fintech is one of the most vulnerable industries to phishing threats. Still, they may not see the variety of financial avenues hackers can jeopardize — that’s where the CFO contributes.

Wire transfer scams and fraudulent payroll emails are only a few examples of financial fraud that could leech onto any company. CFOs know the finance industry most intimately, and exploring how hackers could abuse its components can enlighten analysts on how to stay protected.

CFOs can also communicate with board members about how cybersecurity and financial security interconnect, with their inextricable link solidified by predatory hackers. Phishing attacks cost companies over $1.1 million annually, which will only increase with time.

A CFO’s influence on a company’s cybersecurity

CFOs can prevent phishing by investing in a defensive cybersecurity strategy. Hiring experienced professionals and dedicating resources for training will boost the resilience of any business — regardless of size or experience.

It’s time to reconcile that phishing attacks will only increase in number and severity as technological advances and informational access become more available for companies and hackers. CFOs can mitigate potential damage and keep workforces protected.