Most of the banks have policies that guide them in responding to incidents.

Development Phase:

• Vulnerability Analysis: Utilizing tools like Nessus or Qualys to identify weaknesses in the IT infrastructure.
• Log Analysis: Defining critical log sources (OS, databases, firewalls) and implementing aggregation and analysis mechanisms using tools like Splunk or the ELK Stack.
• Use Case Development: Defining specific patterns of suspicious or anomalous behavior detectable through log analysis (e.g., repeated failed logins, unusual data transfers).
• Indicator of Compromise (IOC) Definition: Identifying data points that signal an incident, such as known malicious IP addresses, malware file names, or suspicious file hashes.
• Simulation Scenario Creation: Developing realistic scenarios for various incident types (DDoS, data breaches, phishing) to test the response plan's effectiveness.
• Security Tool Integration: Ensuring seamless communication and data sharing between security tools (SIEM, IDS/IPS, EDR) for coordinated response.
• Isolation and Containment Procedures: Defining technical steps to isolate compromised systems or networks, such as network segmentation or shutting down affected services.
• Digital Forensics Procedures: Establishing protocols and tools for collecting and preserving digital evidence in a forensically sound manner (e.g., disk imaging, memory analysis).

Implementation Phase:

• Security Information and Event Management (SIEM) Deployment: Aggregating and analyzing logs from various sources, triggering alerts based on defined use cases.
• Intrusion Detection/Prevention Systems (IDS/IPS) Configuration: Monitoring network traffic for malicious activity and implementing rules to block or alert on suspicious patterns.
• Endpoint Detection and Response (EDR) Implementation: Monitoring endpoint activity for threats and enabling automated or manual response actions.
• Isolation and Containment Execution: Utilizing network management tools or endpoint security platforms to isolate compromised assets.
• Digital Forensics Investigation: Employing forensic tools and techniques to analyze collected evidence, determine the root cause, scope, and impact of the incident.
• Recovery Procedures Execution: Utilizing backups and disaster recovery plans to restore affected systems and data, and applying necessary security patches.
• Security Orchestration, Automation and Response (SOAR) Implementation: Automating repetitive incident response tasks, such as blocking malicious IPs or isolating endpoints.
• Malware Analysis: Utilizing sandboxing environments and malware analysis tools to understand the behavior and characteristics of malicious software.

Additional Technical Considerations:

• Encryption: Implementing encryption for sensitive data at rest and in transit.
• Multi-Factor Authentication (MFA): Enforcing MFA for critical systems and accounts.
• Network Segmentation: Dividing the network into isolated zones to limit the impact of breaches.
• Patch Management: Implementing a robust patch management process to address known vulnerabilities.
• Performance Monitoring: Monitoring system performance for anomalies that could indicate an ongoing incident.

Banks develop and implement incident response plans (IRPs) through a structured approach that incorporates preparation, detection, response, recovery, and continuous improvement to mitigate cyber threats and operational disruptions effectively. These plans are tailored to the unique needs of financial institutions, focusing on protecting sensitive customer data, maintaining regulatory compliance, and ensuring the continuity of critical banking services.

The process begins with preparation, where banks identify potential threats, vulnerabilities, and risks specific to their operations. This includes conducting risk assessments and categorizing assets based on their criticality. Banks often adopt frameworks such as the National Institute of Standards and Technology (NIST) Cybersecurity Framework to structure their IRPs. They establish incident response teams (IRTs) composed of IT, legal, compliance, and communications personnel trained to address various scenarios, such as phishing attacks, ransomware, or insider threats. For example, JP Morgan Chase invests heavily in training and equipping their cybersecurity teams to handle emerging threats effectively.

Detection and analysis are crucial in identifying incidents early. Banks deploy sophisticated monitoring tools such as Security Information and Event Management (SIEM) systems to detect anomalies or potential breaches in real time. For instance, Citibank uses advanced analytics and AI-driven tools to analyze patterns and quickly identify malicious activities, such as unauthorized access or data exfiltration.

During the response phase, the IRT executes predefined protocols to contain and mitigate the incident. This may include isolating affected systems, notifying stakeholders, and engaging external forensic experts if necessary. A notable example is the response of the Bank of Bangladesh after a cyber heist involving SWIFT systems; despite the breach, swift containment measures prevented the full extent of the intended theft.

Recovery focuses on restoring affected systems and services to full functionality. Banks prioritize secure and validated backups to ensure data integrity during restoration. Wells Fargo, for example, conducts regular backup tests to ensure rapid recovery in case of incidents, such as ransomware attacks.

Finally, banks emphasize post-incident review and improvement. They analyze the incident to identify weaknesses in their response, refine their IRPs, and implement lessons learned. For example, after the Capital One breach in 2019, the bank not only enhanced its monitoring systems but also introduced stricter access controls and improved its employee training programs to prevent future incidents. i hope i helped.