How private DNS can fortify security for financial institutions?
Photo by Dan Nelson on Unsplash
Cyber threats are an ever present reality for businesses in this day and age, with financial institutions often being prime targets for malicious actors looking to make a quick buck.
Of course, every business in the world is vulnerable to this new age of crime, with attacks capable of being existential threats for even multi-billion dollar global organizations.
However, the stakes are monumentally higher in the case of a financial institution, and for obvious reasons.
Most financial institutions today cannot afford a lax attitude towards cybersecurity and in addition to the bare minimum such as firewalls, encryption, and intrusion detection systems, a private DNS is a prerequisite that stands to significantly strengthen the position of your information systems.
Understanding DNS & its vulnerabilities
At its core, the DNS (domain name system) is nothing more than the internet’s phonebook. It essentially translates complicated IP addresses into memorable and brandable domains, such as – www.bank.com, which can help identify websites on the vast, wide web.
While this is at the very core of how the internet operates, it wasn’t designed with security in mind, as much as it was focused on accessibility and usability.
This oversight has long made domain name systems fertile ground for a wide range of nefarious activities, such as DNS spoofing, cache poisoning, and man-in-the-middle attacks, among a host of other things.
Such vulnerabilities are used to redirect users to fraudulent websites that intercept sensitive information or disrupt services, which can lead to big monetary and reputational losses.
The security edge of private DNS
A private DNS is a dedicated DNS service that operates within an organization’s own network infrastructure.
There are plenty of guides online if you’d like a low-down on how private DNS works. But Here’s how it strengthens security,
1. Enhanced control & visibility
By managing their own DNS, financial institutions gain complete oversight of DNS queries and responses. This control allows for real-time monitoring and logging of DNS activity, making it easier to detect and respond to suspicious behavior.
Unusual patterns, such as a sudden surge in requests to unknown domains, can be flagged and investigated promptly.
2. Protection against DNS attacks
Private DNS servers can implement advanced security protocols like DNSSEC (Domain Name System Security Extensions), which adds a layer of authentication to DNS responses.
This helps prevent attackers from injecting fraudulent DNS data into the system. By verifying the authenticity of DNS responses, institutions can thwart attempts at DNS spoofing and cache poisoning.
3. Encryption of DNS traffic
Standard DNS queries are typically unencrypted, making them vulnerable to interception. Private DNS can utilize encryption methods such as DNS over HTTPS (DoH) or DNS over TLS (DoT) to secure DNS traffic.
Encrypting these queries prevents eavesdroppers from tracking website visits or manipulating DNS responses, safeguarding sensitive transactional data.
4. Compliance & data sovereignty
Financial institutions are subject to strict regulatory requirements concerning data security and privacy. Hosting DNS internally ensures that sensitive data doesn’t traverse public networks where it could be exposed or intercepted.
This internalization aids in complying with regulations like the GDPR or the PCI DSS, which mandate stringent data protection measures.
Beyond security: Additional benefits
Implementing a private DNS isn’t just about defense, it also offers operational advantages:
- Performance optimization: By resolving DNS queries locally, institutions can reduce latency, leading to faster access to critical services.
- Customized policy enforcement: Organizations can enforce specific DNS policies, such as blocking access to known malicious domains or restricting access to non-business-related sites.
- Disaster recovery and resilience: Private DNS can be configured for high availability with failover capabilities, ensuring uninterrupted service even during network issues.
Real-world impact
Imagine a scenario where a hacker launches a DNS spoofing attack against a bank using public DNS servers.
Customers attempting to access online banking are redirected to a counterfeit site that harvests their login credentials. The breach could go undetected until significant damage is done.
With a private DNS in place, the bank could have prevented this attack. Enhanced monitoring would detect anomalous DNS activity, and authentication measures like DNSSEC would block illegitimate DNS responses.
The result is a closed loop of security that significantly reduces the risk of such breaches.
Photo by Dan Nelson on Unsplash
Taking the next step
Adopting a private DNS requires careful planning and expertise. Financial institutions should assess their current infrastructure, identify potential vulnerabilities, and develop a roadmap for implementation.
Collaboration with cybersecurity experts can facilitate a smooth transition and ensure that the private DNS is configured optimally.
Conclusion
Cybersecurity in the world of financial services is a high-stakes business. Robbers who loot a bank might walk out with $1 or $2 million at most, but in the case of cyberattacks, the losses can reach $100s of millions, or even billions of dollars, if you don’t have the right measures in place.
As such, having a private DNS is a powerful protection measure that can significantly bolster an institution’s security posture. In fact, in most countries, it is required by various regulatory standards for most banks and large financial institutions.
