Chapter 1 - Enterprise Security Architecture (Expanded & Integrated Approach)

1.1 Scope of Enterprise Architecture

Defining Enterprise Network and System Architecture for HBT

The ability of HBT’s enterprise security architecture to protect digital banking services, ATM
networks, payment systems, cloud infrastructure etc. must be considered. This includes:

 Use AI for secure banking transactions & data storage by means of fraud detection.
 Resilient cloud security & hybrid network defense for secure cloud adoption.
 Implementing of Zero Trust to make no implicit trust in users nor systems.

Cybersecurity Leadership Strategy:

 As a CISO, as a security control, I would implement risk based security controls to protect
critical banking services against the evolving threat.
 To meet this requirement, Business Continuity Planning (BCP) needs to be based within the
enterprise architecture and to remain functional in the banking operations during the cyber
incidents.

Case Study: Capital One Data Breach (2019) – Cloud Misconfiguration

Summary of Attack: The 106 million customer records were exposed through a misconfigured AWS
S3 bucket.

Lessons Learned: Set strict cloud IAM policies, level of security monitoring, and detect and respond
to cloud misconfiguration (CSPM tools like Prisma Cloud).

Recent Attack Example: MOVEit Data Breach (2023) – Third-Party Risk

Attack Summary: Attackers exploited a zero-day in Progress Software’s MOVEit file transfer system
hundreds of financial institutions.

Key Takeaways: Third party integrations have to be thoroughly security verified before they can be
deployed.

Challenges in Implementation:

Security vs. Performance: Too strict security can hinder the transaction processing speed.

Overlapping regulations: Financial institutions have to comply with many legislations.

Lessons Learned:

 Continuous security assessments are a must to reduce the risk of the cloud security
misconfiguration as a top attack vector.
 The zero trust should not be enforced only with regard to identity; it should be extended to
apply to applications, networks, and APIs as well.

1.2 Formal Strategic Plan for Enterprise Security

Network Security Strategy

🔹 Zero Trust Implementation

✅ Micro-segmentation of networks – Isolate critical banking systems to prevent lateral movement of
threats.

✅ Strict IAM policies – Require Multi-Factor Authentication (MFA) and Just-In-Time (JIT) privileged
access.

📌 Case Study: Uber Cyberattack (2022) – MFA Fatigue Attack

Attack Overview: Attackers social engineered an employee using MFA fatigue attacks, gaining
privileged access to critical systems.

Lessons Learned: Implement adaptive MFA with behavioral biometrics to detect and prevent social
engineering-based authentication attacks.

🔹 Firewall, IDS/IPS, & SIEM Integration

✅ Deploy Next-Gen Firewalls (NGFWs) with Deep Packet Inspection (DPI).

✅ Implement AI-based Intrusion Prevention Systems (IPS) to stop zero-day exploits.

🔹 Challenges in Implementation:

Zero Trust adoption complexity: Large enterprises often struggle with legacy system compatibility.

Cost of SIEM solutions: SIEMs are resource-intensive and require constant tuning to avoid alert
fatigue.

🔹 Key Takeaways:

✅ Next-Gen Firewalls & AI-driven IDS/IPS must be integrated with real-time threat intelligence.

✅ Zero Trust should be prioritized for high-risk user groups (admins, finance teams, vendors

1.3 Requirements Specifications for Enterprise Security

Core Security Requirements

✔ Secure Data Storage & Transmission

✔ AI-Based Fraud Detection & Risk Analytics

✔ Compliance with PCI-DSS, ISO 27001, and NIST CSF

📌 Case Study: Bangladesh Bank Heist (2016) – SWIFT Payment Fraud

Attack Overview: Cybercriminals exploited weak access controls in SWIFT transactions, stealing $81
million.

Lessons Learned: Implement MFA & AI-powered fraud detection to monitor transaction anomalies.

🔹 Challenges in Implementation:

Fraud detection false positives: AI-based fraud detection requires fine-tuning to avoid blocking
legitimate transactions.

Regulatory compliance complexity: Each financial region has different banking security mandates.
🔹 Key Takeaways:

✅ AI-based anomaly detection reduces fraud but must be combined with human oversight.

✅ Secure banking API communications using OAuth2, JWT, and API gateways.

1.4 System Boundaries & Constraints

Defining System Boundaries in HBT’s Enterprise Security

✔ Internal Banking Networks & Systems – Protecting core banking operations from unauthorized
access.
✔ External Connections (Customer Online Banking, Third-Party APIs, Fintech Integrations) – Ensuring
API security and compliance.

🔹 Recent Attack Example: SolarWinds Supply Chain Attack (2020)

Attack Overview: Hackers injected malware into a trusted software update, affecting thousands of
enterprises, including financial institutions.

Lessons Learned: Implement zero-trust third-party access policies and continuous monitoring of
software supply chains.

🔹 Challenges in Implementation:

Balancing security with innovation: Financial institutions must allow fintech integrations while
preventing security loopholes.

Managing third-party risks: Vendor security assessments must be conducted continuously, not just at
onboarding.

🔹 Key Takeaways:

✅ Third-party API security is a high-risk area – Secure API gateways & continuous monitoring are
essential.

✅ Zero Trust should be extended to vendor relationships – Implement adaptive access controls for
fintech partners.

1.5 Security Measures in Enterprise Architecture

Multi-Layered Security Strategy

✔ Perimeter Security – Firewalls, IDS/IPS, VPNs

✔ Endpoint Security – EDR, Zero Trust Device Access Control

✔ Access Control Security – RBAC, IAM, MFA

📌 Recent Attack Example: MGM Resorts Ransomware Attack (2023)

Attack Overview: Attackers exploited poor social engineering defenses, shutting down hotel and
casino systems.

Lessons Learned: Implement real-time monitoring for unusual employee behavior and enforce
stronger phishing awareness programs.
🔹 Challenges in Implementation:

Zero Trust requires organizational buy-in – Employees often resist increased security controls.

Cloud security enforcement gaps – Cloud misconfigurations are a top security risk.

🔹 Key Takeaways:

✅ Security awareness training & red teaming are crucial to preventing social engineering attacks.

✅ Cloud security posture management (CSPM) tools must be used to detect misconfigurations.
Chapter 2: Application Architecture (Secure Banking System) (4-6 Pages)

2.1 Scope of Secure Banking Application Architecture

The Application Security Architecture for Harkonnen Bank and Trust (HBT) is designed to secure
online and mobile banking platforms, ensuring the confidentiality, integrity, and availability of
financial transactions. As the financial sector remains a prime target for cybercriminals, security
strategies must protect customer accounts, APIs, fintech integrations, and regulatory compliance.

Online & Mobile Banking System Security

The rise in digital banking adoption has led to a surge in phishing attacks, credential stuffing, and
account takeovers. A robust security framework must be in place to:

✔ Implement end-to-end encryption (TLS 1.3, AES-256) for transactions.

✔ Deploy Multi-Factor Authentication (MFA) & adaptive risk-based authentication.

✔ Ensure secure session management & real-time fraud detection.

✔ Enable AI-driven anomaly detection to prevent unauthorized access.

📌 Case Study: Revolut Security Incident (2022) – API Misconfiguration & Data Breach

Attack Overview: A misconfigured API endpoint exposed the personal data of 50,000 users.

Lessons Learned: API security misconfigurations remain a top attack vector in online banking.

Secure API & Fintech Integrations

Modern banking services heavily rely on API integrations for third-party fintech services like:

Credit scoring & risk assessment (e.g., Experian, TransUnion).

Payment gateways (e.g., PayPal, Stripe).

Investment & loan applications.

📌 Recent Attack: Plaid API Breach (2023) – OAuth Token Exploitation

Attack Overview: OAuth tokens were compromised, allowing unauthorized access to user financial
data.

Lessons Learned: Implement OAuth2 best practices, token expiration policies, and API rate limiting.
🔹 Challenges in Implementation:

Ensuring compliance across multiple fintech partners (GDPR, PCI-DSS, ISO 27001).

Securing API communications without impacting performance.

🔹 Key Takeaways:

✅ API Security Gateways should enforce strict authentication (OAuth2, JWT, mTLS).

✅ Continuous monitoring of API endpoints is critical to prevent exploitation.

2.2 Formal Strategic Plan for Secure Application Development

Layered Security Approach for Application Security

HBT must implement a multi-layered security model ensuring:

✔ Front-end security (UI protection, secure authentication).

✔ Back-end security (database encryption, API protection).

✔ Code security (DevSecOps, secure coding practices).

Front-End Security (Web & Mobile Banking UI Protection)

📌 Threats: Phishing, Man-in-the-Middle (MitM), Credential Stuffing.

✅ Solution:

Implement CAPTCHA & bot mitigation tools to prevent automated attacks.

Enforce HSTS (HTTP Strict Transport Security) to prevent MitM attacks.

Deploy Content Security Policy (CSP) to prevent JavaScript injection attacks.

Back-End Security (Database & API Security)

📌 Threats: SQL Injection, API abuse, Data Exposure.

✅ Solution:

Use prepared statements & ORM to prevent SQL injection.

Encrypt sensitive data in transit (TLS 1.3) & at rest (AES-256).

Implement API rate limiting & anomaly detection to prevent scraping attacks.
📌 Case Study: Equifax Data Breach (2017) – Unpatched Vulnerability in Web Application

Attack Overview: A critical Apache Struts vulnerability led to the compromise of 147 million user
records.

Lessons Learned: Regular patching & security scanning is mandatory for web applications.

🔹 Challenges in Implementation:

Balancing performance & security (strong encryption may slow down application responses).

Maintaining security compliance across distributed microservices.

🔹 Key Takeaways:

✅ Security should be embedded in every stage of development (DevSecOps).

✅ Automated security testing must be integrated into the CI/CD pipeline.

2.3 Requirements Specifications for Banking Application Security

Application Security Requirements

✔ Authentication & Access Control

OAuth 2.0 for API authentication.

Multi-Factor Authentication (MFA) with push notifications & biometrics.

✔ Data Encryption

AES-256 encryption for sensitive banking data.

TLS 1.3 for all network communications.

✔ API Security

OAuth2 & JWT-based API authentication.

API rate limiting & anomaly detection for abuse prevention.

📌 Recent Attack: MGM Resorts Ransomware Attack (2023) – Social Engineering & MFA Bypass

Attack Overview: Attackers exploited weak MFA policies, allowing full system takeover.
Lessons Learned: MFA alone is not enough – Implement behavioral biometrics & AI-driven anomaly
detection.

🔹 Challenges in Implementation:

Balancing security with user experience (too many authentication steps frustrate users).

Ensuring strong encryption while maintaining API performance.

🔹 Key Takeaways:

✅ Risk-based authentication (adaptive MFA) improves security without sacrificing UX.

✅ FIDO2 passwordless authentication should be considered for future-proofing security.

2.4 System Boundaries & Constraints in Application Security

Security Integration with Third-Party Fintech Solutions

Fintech integrations introduce risks, including:

✔ Unauthorized API access (API token leaks, excessive privileges).

✔ Data leakage from third-party misconfigurations.

📌 Case Study: SolarWinds Supply Chain Attack (2020) – Third-Party Backdoor Exploitation

Attack Overview: Cybercriminals injected malware into a trusted software update, affecting financial
institutions worldwide.

Lessons Learned: Implement strict vendor security assessments & zero-trust third-party access
policies.

Regulatory Compliance & Secure Data Handling

✔ Ensure PCI-DSS compliance for secure payment processing.

✔ Align with GDPR & ISO 27001 for customer data privacy.

🔹 Challenges in Implementation:

Vendor security is difficult to enforce due to lack of direct control.

Continuous API security monitoring is resource-intensive.

🔹 Key Takeaways:
✅ API access must be tightly controlled with OAuth2 scopes & least privilege principles.

✅ Third-party vendor security must be continuously assessed (SOC 2 Type 2 compliance).

2.5 Security Features in HBT’s Application Architecture

Secure Code Development Practices (OWASP Top 10)

✔ Prevent SQL injection using ORM & input validation.

✔ Secure session management with HTTPOnly & Secure cookies.

📌 Recent Attack: Uber Source Code Leak (2022) – Hardcoded Credentials in Code Repository

Attack Overview: Plaintext credentials were leaked via GitHub repositories.

Lessons Learned: Use Secrets Management Tools (e.g., HashiCorp Vault) to store credentials
securely.

Secure Software Development Lifecycle (SDLC) with DevSecOps

✔ Automate security testing in CI/CD pipelines (SAST, DAST, IAST).

✔ Perform continuous vulnerability scanning & patch management.

Threat Modeling & Secure Coding Guidelines

✔ Use STRIDE threat modeling to proactively identify security risks.

✔ Enforce secure coding guidelines with mandatory security code reviews.

📌 Key Takeaways:

✅ Secure coding is non-negotiable – OWASP Top 10 & threat modeling must be mandatory.

✅ DevSecOps adoption accelerates secure software releases while reducing vulnerabilities.

Chapter 3: Risk Management & Strategic Planning (Expanded Version – 4-5 Pages)

3.1 Existing Security Capabilities in HBT’s Enterprise & Application Architecture

Current Security Tools & Frameworks in Use

Harkonnen Bank and Trust (HBT) has implemented a comprehensive cybersecurity infrastructure to
protect against cyber threats. The bank’s security capabilities include network security tools,
endpoint protection, fraud detection mechanisms, and compliance-driven security frameworks.

🔹 Key Security Tools & Technologies in Use:

✅ Network Security & Perimeter Defense:

Next-Gen Firewalls (Palo Alto, Cisco, Fortinet) – Protects against unauthorized access and DDoS
attacks.

Intrusion Detection & Prevention Systems (IDS/IPS) (Snort, Suricata) – Identifies and blocks malicious
activity.

✅ Endpoint Security & Threat Monitoring:

Endpoint Detection & Response (EDR/XDR) (CrowdStrike, Microsoft Defender ATP) – Prevents
malware and ransomware attacks.

Mobile Device Management (MDM) (IBM MaaS360, Microsoft Intune) – Ensures secure access for
mobile banking applications.

✅ Application & API Security:

Web Application Firewall (WAF) (Cloudflare, AWS Shield) – Protects web and mobile applications
from OWASP Top 10 threats.

API Security Gateway (Apigee, Kong, AWS API Gateway) – Secures third-party fintech integrations.

✅ Identity & Access Management (IAM):

Multi-Factor Authentication (MFA) (Okta, Duo Security) – Prevents unauthorized access.

Privileged Access Management (PAM) (CyberArk, BeyondTrust) – Controls high-risk user access.

✅ Fraud Detection & Risk Analytics:

AI-Based Fraud Prevention (IBM Trusteer, Feedzai, Darktrace) – Detects anomalies in banking
transactions.

SIEM & Threat Intelligence (Splunk, IBM QRadar, Microsoft Sentinel) – Provides real-time log
correlation and security monitoring.
📌 Case Study: Capital One Data Breach (2019) – Cloud Misconfiguration Risk

Attack Overview: A misconfigured AWS S3 bucket exposed 106 million customer records.

Lessons Learned:

Implement Cloud Security Posture Management (CSPM) to detect misconfigurations.

Enforce least privilege access and Zero Trust policies in cloud environments.

Gaps Identified in the Contextual Architecture (Assignment 2.1)

While HBT has implemented strong security controls, several gaps remain:

🔹 Key Identified Gaps:

❌ Cloud Security Posture Management (CSPM) Needs Strengthening – Lack of automated cloud
misconfiguration detection.

❌ Insider Threat Protection Needs Enhancement – Employees and vendors still pose risks via
phishing and privilege misuse.

❌ Need for Continuous API Security Testing – Third-party integrations may introduce API
vulnerabilities.

❌ Compliance Management Complexity – Financial regulations vary across regions, requiring

automated compliance tracking.

📌 Key Takeaways:

✅ Cloud misconfigurations remain a top attack vector – Continuous compliance monitoring is

essential.

✅ Insider threats must be addressed through real-time behavioral analytics.

✅ Third-party API security must be continuously monitored using AI-driven anomaly detection.

3.2 Risk Management Approach for HBT’s Conceptual Architecture

Cyber Threat Landscape for Financial Services

The financial industry is a prime target for cyberattacks, with ransomware, phishing, and API security
breaches being the most common threats.
🔹 Top Cyber Risks for HBT:

✔ Ransomware Attacks: Threat actors encrypt banking data and demand payments to restore
access.
✔ Phishing & Social Engineering: Employees and customers fall victim to fraudulent emails leading to
credential theft.
✔ API-Based Attacks: Weak API security leads to unauthorized access to customer financial data.
✔ Advanced Persistent Threats (APTs): Nation-state attackers target financial institutions for
espionage and fraud.

📌 Case Study: Bangladesh Bank Heist (2016) – SWIFT Payment Fraud

Attack Overview: Cybercriminals compromised SWIFT messaging systems, stealing $81 million via
fraudulent transactions.

Lessons Learned:

Implement AI-driven transaction monitoring to detect anomalous financial activities.

Enhance SWIFT security controls with multi-layered authentication.

AI-Driven Threat Detection & Fraud Prevention

HBT must use AI-driven fraud detection to combat evolving cyber threats.

🔹 Key AI-Based Security Capabilities:

✅ Real-time Threat Detection: Machine learning models detect anomalies in banking transactions.
✅ Behavioral Biometrics: AI verifies user identity based on keystrokes and mobile behavior.
✅ Automated Security Orchestration (SOAR): AI-driven response mechanisms neutralize threats
instantly.

📌 Recent Attack: MGM Resorts Ransomware Attack (2023) – Social Engineering & MFA Bypass

Attack Overview: Attackers exploited weak MFA policies, allowing full system takeover.

Lessons Learned: Implement adaptive MFA & behavioral biometrics to prevent social engineering
attacks.

🔹 Challenges in Implementation:

AI models require extensive training to reduce false positives.

Machine learning security requires continuous updates to adapt to new threats.

🔹 Key Takeaways:

✅ AI-based fraud detection enhances real-time security but requires continuous monitoring.

✅ Behavioral biometrics can prevent stolen credential attacks.

Business Continuity & Disaster Recovery Planning (BCP/DRP)

HBT must have a robust BCP/DRP strategy to mitigate cyber risks and minimize downtime.

🔹 Key BCP/DRP Strategies:

✔ Automated Backups: Secure, encrypted backups with air-gapped storage.

✔ Redundant Network Architecture: Failover mechanisms for DDoS mitigation and disaster recovery.
✔ Incident Response Teams: SOC analysts trained to contain and mitigate cyberattacks.

📌 Case Study: Colonial Pipeline Ransomware Attack (2021) – BCP Failure

Attack Overview: Ransomware attack shut down fuel pipelines, leading to supply chain disruptions.

Lessons Learned:

Backup data must be immutable to prevent encryption.

Regular incident response exercises are mandatory.

🔹 Key Takeaways:

✅ Ransomware resilience requires robust backup & disaster recovery mechanisms.

✅ DDoS protection must be implemented for critical banking services.

3.3 Strategic Planning for Future Security Enhancements

Proactive Security Measures & Future Upgrades

HBT must implement proactive security measures to stay ahead of cybercriminals.

🔹 Security Roadmap:

✔ Expand Zero Trust Implementation – Extend to microservices & cloud workloads.

✔ Enhance API Security with AI-based anomaly detection.

✔ Automate compliance monitoring for evolving regulations.

📌 Case Study: SolarWinds Supply Chain Attack (2020) – Need for Vendor Risk Management

Attack Overview: A trusted vendor update introduced backdoor malware, leading to data breaches.

Lessons Learned: Implement continuous vendor security assessments.

🔹 Key Takeaways:

✅ Zero Trust should be extended to vendor access controls.

✅ Compliance automation tools improve regulatory readiness.

Regulatory Adaptations & Evolving Cybersecurity Policies

HBT must comply with financial security regulations such as:

✔ PCI-DSS 4.0 – Secure payment transactions.

✔ ISO 27001 – Information Security Management System.

✔ GDPR & CCPA – Customer data protection.

📌 Recent Regulation Change: PCI-DSS v4.0 (2022) – Stronger Security Requirements for Payment
Processing
🔹 Key Updates:

✔ MFA is now mandatory for all access to payment data.

✔ Automated security testing is required for all banking applications.

🔹 Key Takeaways:

✅ Regulations will continue evolving – HBT must adopt security automation.

✅ Continuous compliance assessments are necessary for regulatory adaptation.

Chapter 4: Development & Release Process for Secure Banking Applications

4.1 Secure Development Lifecycle (SDLC) for HBT’s Banking Application

The Secure Software Development Lifecycle (SDLC) at Harkonnen Bank and Trust (HBT) ensures that
security is embedded into every stage of banking application development. With the increasing risks
of software vulnerabilities, API exploits, and supply chain attacks, integrating security within the
CI/CD pipeline (Continuous Integration/Continuous Deployment) is critical.
🔹 Key Objectives of HBT’s Secure SDLC:

✔ Integrate security into the CI/CD pipeline to detect vulnerabilities early.

✔ Automate code security testing (SAST, DAST, IAST) to prevent exploitable flaws.

✔ Ensure compliance with OWASP, PCI-DSS, ISO 27001, and NIST security standards.

📌 Case Study: SolarWinds Supply Chain Attack (2020) – Need for Secure CI/CD

Attack Overview: Threat actors injected malware into SolarWinds Orion software updates,
compromising 18,000+ enterprises.

Lessons Learned:

Code integrity verification & software supply chain security are crucial.

Automated CI/CD security checks must prevent malicious code from entering production.

DevSecOps & CI/CD Pipeline for Secure Code Deployment

🔹 HBT's DevSecOps Implementation Strategy:

✅ Security as Code: Security policies are embedded directly into CI/CD workflows.
✅ Automated Testing at Every Stage:

Static Application Security Testing (SAST) – Detects vulnerabilities in source code before build.

Dynamic Application Security Testing (DAST) – Identifies security flaws during runtime.

Interactive Application Security Testing (IAST) – Provides real-time security analysis during
development.

✅ Software Composition Analysis (SCA):

Identifies vulnerabilities in open-source libraries used in HBT’s banking application.

✅ Immutable Infrastructure:

Deploy containerized banking applications (Docker, Kubernetes) to prevent unauthorized code

modifications.

📌 Recent Attack: CodeCov CI/CD Supply Chain Attack (2021)

Attack Overview: Attackers compromised CI/CD scripts, exfiltrating developer credentials.

Lessons Learned: Implement secure CI/CD pipeline monitoring to detect unauthorized code changes.

🔹 Challenges in Implementation:

❌ Security testing must balance speed & efficiency to prevent DevOps bottlenecks.

❌ False positives in automated security scans may slow down releases.

🔹 Key Takeaways:

✅ Automated security testing must be integrated without delaying software delivery.

✅ Regular threat modeling & risk assessments enhance CI/CD security.

Automated Code Scanning & Security Testing (SAST, DAST, IAST)

🔹 Benefits of Automated Security Testing:

✔ Detects vulnerabilities early before release.

✔ Reduces manual security testing efforts.

✔ Prevents known security flaws from reaching production.

📌 HBT’s Security Testing Workflow:

✔ SAST (Static Code Analysis) – Detects hardcoded secrets, injection flaws, and weak encryption.

✔ DAST (Dynamic Testing) – Identifies runtime vulnerabilities such as broken authentication &
session management flaws.

✔ IAST (Interactive Testing) – Monitors application behavior for security issues during execution.

✔ Software Bill of Materials (SBOM) Compliance Check – Ensures third-party components are secure
& free from known CVEs (Common Vulnerabilities and Exposures).

📌 Case Study: Log4j Vulnerability (2021) – Importance of Automated Vulnerability Scanning

Attack Overview: A critical remote code execution (RCE) vulnerability in Log4j affected millions of
applications worldwide.

Lessons Learned:

Automated security scanning tools (SCA, DAST, IAST) must be used to detect vulnerable
dependencies.

Regular patch management & CVE monitoring are essential to prevent exploitation.

🔹 Challenges in Implementation:

❌ False positives from automated scans require manual validation.

❌ Security testing must align with agile development cycles without causing delays.

🔹 Key Takeaways:

✅ Automated testing must be complemented by human-led security assessments.

✅ Organizations must continuously monitor third-party dependencies for vulnerabilities.

4.2 Security Testing & Code Review Process

Penetration Testing for Application Security (Red Teaming, Fuzz Testing)

To validate the security of HBT’s banking application, penetration testing simulates real-world
cyberattacks.

🔹 HBT’s Penetration Testing Strategy:

✔ Red Team Simulations: Ethical hackers simulate credential stuffing, API abuse, and session
hijacking attacks.
✔ Fuzz Testing: Automated tools inject random inputs to identify software crashes & buffer overflow
vulnerabilities.
✔ Secure Code Review: Security engineers review source code for logic errors, insecure coding
patterns, and authentication flaws.

📌 Recent Attack: Uber Source Code Leak (2022) – Need for Secure Code Reviews

Attack Overview: Hardcoded admin credentials in GitHub repositories led to unauthorized access.

Lessons Learned:

Enforce security reviews to eliminate plaintext credentials.

Use HashiCorp Vault & AWS Secrets Manager for secure key storage.

🔹 Challenges in Implementation:

❌ Manual penetration testing requires skilled security professionals.

❌ Red team exercises must be scheduled without disrupting banking operations.

🔹 Key Takeaways:

✅ Penetration testing must be performed regularly to simulate evolving attack vectors.

✅ Code review policies must be enforced to prevent insecure coding practices.

Continuous Vulnerability Management & Patch Management

HBT must maintain a proactive vulnerability management process to mitigate emerging threats.

🔹 HBT’s Vulnerability Management Lifecycle:

✔ Continuous Monitoring (SIEM, Threat Intelligence Feeds).

✔ Automated Patch Deployment (WSUS, Ansible, Chef, SCCM).

✔ Cloud Security Posture Management (CSPM) to prevent misconfigurations.

📌 Case Study: Equifax Data Breach (2017) – Failure in Patch Management

Attack Overview: Attackers exploited an unpatched Apache Struts vulnerability, exposing 147 million
customer records.

Lessons Learned:

Automate patch deployment for critical vulnerabilities.

Establish SLA-based patching policies for financial services.

🔹 Challenges in Implementation:

❌ Legacy banking systems may require extensive testing before patches can be applied.

❌ Zero-day vulnerabilities require rapid mitigation strategies.

🔹 Key Takeaways:

✅ Automated patching must be prioritized for critical financial applications.

✅ Threat intelligence feeds should be integrated with SIEM for real-time risk assessment.

📌 Summary of Chapter 4:

✔ Secure SDLC must integrate DevSecOps to ensure security is built into the CI/CD pipeline.
✔ Automated security testing (SAST, DAST, IAST) must be complemented by manual penetration
testing.
✔ Code reviews and fuzz testing must be mandatory to eliminate software vulnerabilities.
✔ Continuous vulnerability management ensures rapid detection and patching of emerging threats.
Chapter 5: Compliance, Policies & Regulatory Considerations

5.1 Compliance & Risk Frameworks for HBT’s Security Architecture

In the financial services sector, the Harkonnen Bank and Trust (HBT) has to follow regulatory
standards, risk governance and cybersecurity governance very strictly. It is critical to ensure that the
data is protected from customer financial data, ensure secure transaction and minimize risk of legal
risk.

HBT must align with global and regional security frameworks, including:

 PCI-DSS 4.0 (Payment Card Industry Data Security Standard) – Ensures secure processing of
credit and debit card transactions.
 GDPR (General Data Protection Regulation) – Protects customer personal data and enforces
privacy rights.
 ISO 27001 (Information Security Management System - ISMS) – Provides a structured
framework for risk-based information security management.
 NIST Cybersecurity Framework (CSF) – Guides risk assessment, incident response, and
continuous monitoring.
 SOC 2 (System and Organization Controls 2) – Ensures financial services providers meet
security, availability, and confidentiality controls.

i. PCI-DSS Compliance for Payment Security

Key Requirements for HBT’s Banking Systems:

 Encrypt cardholder data using AES-256 encryption at rest and TLS 1.3 in transit.
 Implement strong access control policies (MFA, role-based access).
 Regular vulnerability scanning & penetration testing (ASV scans, red teaming).
 Continuous monitoring of payment transactions for fraud detection.

Case Study: Target Data Breach (2013) – PCI Non-Compliance & Weak Network
Segmentation

a. Attack Overview: Attackers stole 40 million credit card details due to poor network
segmentation and lack of multi-factor authentication (MFA).
b. Lessons Learned:
o Strict network segmentation is required to isolate payment systems from
external threats.
o Regular compliance audits must be enforced to prevent security gaps.
c. Challenges in Implementation:
o Achieving PCI-DSS compliance requires continuous monitoring & reporting.
o Failure to comply leads to regulatory fines & loss of customer trust.
d. Key Takeaways:
o HBT must conduct regular PCI-DSS assessments and use automated
compliance tracking.
o Tokenization & encryption must be enforced to protect cardholder data.
GDPR Compliance for Customer Data Protection

📌 Key GDPR Requirements for HBT:

✔ Data Minimization: Only collect necessary customer data.

✔ Right to Access & Erasure: Customers must be able to request access and deletion of their
personal data.

✔ Breach Notification: Data breaches must be reported to regulators within 72 hours.

📌 Recent Attack: Facebook GDPR Fine (2023) – €1.2 Billion Penalty for Data Transfers

Attack Overview: Facebook violated GDPR by transferring European user data to U.S. servers without
proper safeguards.

Lessons Learned: Implement end-to-end encryption for cross-border data transfers and ensure
GDPR-approved cloud storage.

🔹 Challenges in Implementation:

❌ GDPR requirements vary across jurisdictions, complicating compliance.

❌ Encryption and anonymization must be enforced to protect customer data.

🔹 Key Takeaways:

✅ HBT must implement strong encryption & data access controls to comply with GDPR.

✅ Data Protection Impact Assessments (DPIA) must be conducted before launching new financial
products.

ISO 27001 for Risk-Based Information Security Management

📌 HBT’s ISO 27001 Implementation Strategy:

✔ Establish an Information Security Management System (ISMS).

✔ Perform risk assessments & identify vulnerabilities using ISO 27005.

✔ Enforce policies for data protection, incident response, and vendor security.

📌 Case Study: Equifax Data Breach (2017) – Lack of ISO 27001-Based Risk Management

Attack Overview: Equifax failed to patch a known Apache Struts vulnerability, leading to the exposure
of 147 million records.

Lessons Learned:

Regular risk assessments must be performed to identify security gaps.

Automated patch management is required to prevent delays in security updates.

🔹 Key Takeaways:

✅ ISO 27001 certification ensures financial institutions maintain a strong risk-based security posture.

✅ HBT must perform continuous security audits & vulnerability assessments.

NIST Cybersecurity Framework (CSF) for Risk Management

HBT follows the NIST CSF five core functions:

✔ Identify: Understand cybersecurity risks across banking operations.

✔ Protect: Implement Zero Trust, firewalls, MFA, and data encryption.

✔ Detect: Use SIEM and threat intelligence for real-time monitoring.

✔ Respond: Have an incident response plan (IRP) to handle breaches.

✔ Recover: Ensure disaster recovery & business continuity plans (BCP/DRP).

📌 Recent Attack: Colonial Pipeline Ransomware (2021) – Weak Risk Management Controls

Attack Overview: Attackers compromised an employee VPN without MFA, shutting down fuel
distribution.

Lessons Learned: Implement Zero Trust, continuous monitoring, and MFA enforcement.

🔹 Key Takeaways:

✅ HBT must integrate NIST CSF principles into enterprise risk management.

✅ Continuous security awareness training is crucial to prevent social engineering attacks.

5.2 Security Policies & Governance

Identity & Access Management (IAM) Policies

HBT enforces strict IAM policies to prevent unauthorized access:

✔ Least Privilege Access Control (PoLP): Employees get access only to necessary data & systems.

✔ Multi-Factor Authentication (MFA): Required for all privileged users & financial transactions.

✔ Privileged Access Management (PAM): High-risk accounts are monitored & restricted.

📌 Recent Attack: Uber Data Breach (2022) – MFA Fatigue Exploitation

Attack Overview: Attackers spammed employees with MFA requests until they accepted.

Lessons Learned: Implement adaptive MFA with biometric verification.

🔹 Challenges in Implementation:

❌ Balancing security and user convenience (strict IAM may frustrate employees).

❌ Managing access for third-party vendors & fintech partners.

🔹 Key Takeaways:

✅ HBT must implement risk-based authentication (adaptive MFA).

✅ Privileged accounts must undergo continuous monitoring & session recording.

Incident Response & Cybersecurity Awareness Training

📌 Key Components of HBT’s Incident Response Plan (IRP):

✔ Security Operations Center (SOC): Real-time monitoring of banking threats.

✔ Incident Detection & Containment: Rapid detection & isolation of compromised accounts.

✔ Regulatory Reporting: Ensure GDPR & PCI-DSS breach notification requirements are met.

📌 Recent Attack: MGM Resorts Ransomware (2023) – Social Engineering & Lack of Employee
Awareness

Attack Overview: Attackers used LinkedIn to socially engineer an IT helpdesk employee, gaining
network access.

Lessons Learned: Implement mandatory employee cybersecurity awareness training.

🔹 Challenges in Implementation:

❌ Employees are often the weakest security link (phishing & social engineering risks).

❌ Incident response teams must be well-trained to handle sophisticated cyberattacks.

🔹 Key Takeaways:

✅ Regular phishing simulations & security awareness training reduce human risk.

✅ HBT must enforce Zero Trust & continuous monitoring to prevent unauthorized access.

📌 Summary of Chapter 5:

✔ HBT must comply with PCI-DSS, GDPR, ISO 27001, and NIST CSF to maintain regulatory
compliance.

✔ IAM policies should enforce Zero Trust, MFA, and privilege access controls.

✔ Incident response plans & employee training programs are crucial to preventing breaches.

✔ Continuous security audits & compliance monitoring tools must be used to detect violations.

Chapter 6: Key Takeaways & Lessons Learned (Expanded Version – 2-3 Pages)

6.1 Summary of HBT’s Enterprise Security Architecture

To protect financial transactions, customer data, and enterprise infrastructure, HBT has grown a
strong security architecture based on Sherwood Applied Business Security Architecture (SABSA)
framework. All of it is implemented through the Zero Trust security models, AI based threat
detection and secure application development practice that make HBT immune to new cyber
threats.

Key Areas Covered in the Security Architecture:

  Enterprise Security (Network & System Security): SIEM, intrusion prevention, Zero Trust
access controls, enforced firewalls.
 Application Security (Online & Mobile Banking): The authentication is OAuth2 based
secured with end to end encryption and DevSECOPS best practices.
 Risk Management & Strategic Planning: Implemented AI powered fraud detection, incident
response planning and business continuity decisions.
 Secure Development & Release Process: Automation of vulnerability scanning, integrated
CI/CD security, and penetration testing of red teams.
 Regulatory Compliance & Security Policies: They adhered to PCI-DSS, GDPR, ISO 27001 and
NIST CSF.

6.2 Lessons Learned from Recent Cybersecurity Incidents

From recent high profile financial sector attacks, lessons were drawn in order to refine HBT’s
cybersecurity strategy.

i. Case Study: MOVEit Data Breach (2023) – Third-Party Risk Exposure

Moving to a Safer Motion: Hackers exploited a zero day vulnerability in the Progress
Software’s MOVEit file transfer system affecting multiple financial institutions.

Lessons Learned:

 The vendor risk management process should be continuous.

 That is why API security monitoring is a must, it can detect suspicious activities in
real time.
ii. Case Study: Capital One Data Breach (2019) – Cloud Misconfiguration
Description of the attack: AWS S3 bucket containing 106 million customer records was
misconfigured.

Lessons Learned:

 Misconfigurations have to be detected using cloud security posture management

(CSPM) tools and fixed.
 Long lived IAM roles are vulnerable to overprivileged access so need to be closely
controlled.
iii. Case Study: Uber Data Breach (2022) – MFA Fatigue Attack
Attack Overview: Attackers flooded an employee’s device with MFA requests until the
access was approved.

Lessons Learned:

 Behavioral analytics should therefore be in the making of MFA, so that it can work
with adaptive MFA, to detect abnormal login attempts.
 One to avoid social engineering attacks is phishing resistant authentication (e.g.,
FIDO2).

6.3 Challenges in Implementing a Secure Banking Infrastructure

1. Balancing Security and Usability

Challange: For example MFA, CAPTCHA and strict access controls bring extra friction in UX.
 Solution: Dynamic changes in user behaviour require dynamic changes in security
requirements, and risk based authentication is used to achieve so.

2. Third-Party & API Security Risks

Challenge: There are numerous fintech integrations that bring vulnerabilities through third-
party APIs.

Solution: Solution is to implement OAuth2, JWT authentication and API rate limiting using
API Security Gateways (Apigee, AWS API Gateway).

3. Insider Threats & Social Engineering Risks

Challenge: Phishing and credential theft are a high risk goal via employee vectors.

Solution: Educate people to conduct phishing simulations on a regular basis and trust Zero
Trust policies for privileged use.

4. Continuous Compliance & Regulatory Adaptation

Challenge: Customer-facing teams are under constant pressure to renew their applications,
servers, and personal tokens (e.g., through PCI-DSS v4.0, the policies surrounding MFA are
somewhat stricter now).

Solution: Automate a continuous compliance enforcement via the deployment of compliance

automation tools.

Key Takeaways: Security must be embedded into each layer of banking operations – from security of
a calm employee to good coding practices.

6.4 Future Security Roadmap for HBT

HBT has to implement more secure measures than what it has currently because in order to stay
ahead of cyber threats.

Proposed Future Security Enhancements:

 Let the Microservices and Cloud Workloads become part of Zero Trust – Start implementing
serverless security best practices.
 Use AI to power SOAR (Security Orchestration, Automation, and Response) to automate the
response to the threat in order to minimize incident resolution times.
 Enhance real time(transaction anomaly detection) by increase use of AI & Machine Learning
for Fraud detection.
 Perform Continuous Auditor on Fintech Vendors to Strengthen Supply Chain Security.
 Reduce reliance on the traditional password-based security via Adopt Passwordless
Authentication (FIDO2, WebAuthn).

Supply Chain Exploitation: Case Study – SolarWinds Attack (2020)

Lessons Learned: The Zero Trust controls need to be applied to the vendor access tightly.
6.5 Final Recommendations & Key Takeaways

Top 5 Cybersecurity Best Practices for Financial Institutions are following:

 Zero Trust Architecture – Never assume trust, always verify users, devices, and APIs.
 Secure Software Development Lifecycle (SDLC) – Automate vulnerability scanning in CI/CD
pipelines.
 Regulatory Compliance Monitoring – Continuously assess PCI-DSS, GDPR, and ISO 27001
adherence.
 Advanced Threat Detection & AI Security Analytics – Leverage machine learning for fraud
prevention.
 Incident Response & Crisis Management – Train teams with real-world cyberattack
simulations.
Conclusion

The Enterprise Information Security Architecture (EISA), part of a comprehensive information

security program, developed by Harkonnen Bank and Trust (HBT) has employed the Sherwood
Applied Business Security Architecture (SABSA) framework. In this report, we analyze enterprise
security strategies, security architecture of applications, risk management, compliance and practices
of secure development and all of them abide by industry best practices and regulatory mandates.

Key Takeaways from the Security Architecture Implementation:

 Enterprise Security Measures: Zero Trust, AI powered fraud detection and high level of
security for network and endpoints is implemented.
 Application Security Framework: OAuth2 based authentication, API security, DevSecOps
integration, real-time fraud detection is needed in the applications of secure banking.
 Risk Management & Business Continuity: Artificial intelligence in threat intelligence,
BCP/DRP, and incident response planning improved its resilience.
 Regulatory Compliance & Governance: HBT complies with PCI DSS, GDPR, ISO 27001, NIST
CSF and SOC 2 to meet the security standards of the financial domain.
 Future Security Roadmap: The AI driven SOAR, Zero Trust cloud strategy, and continuous
compliance automation are the things HBT needs to pursue further in order to stay ahead of
the emerging threats.

Final Thoughts:

The threats to financial institutions via the cyber means have become so sophisticated that financial
institutions have to continuously improve their security, proactively mitigate risk, and react to
regulatory change. HBT’s holistic approach to security provides a regulatory footing as well as leaves
customers trusting and makeup for the business operational resilience on an ever changing threat
level.
References

Regulatory & Compliance Frameworks:

European Union General Data Protection Regulation (GDPR). (2018). Retrieved from https://gdpr.eu/

ISO/IEC 27001:2022 Information Security Management. (2022). International Organization for

Standardization (ISO).

National Institute of Standards and Technology (NIST) Cybersecurity Framework (CSF). (2020).
Retrieved from https://www.nist.gov/cyberframework

Payment Card Industry Data Security Standard (PCI-DSS) v4.0. (2022). Retrieved from
https://www.pcisecuritystandards.org/

System and Organization Controls 2 (SOC 2). (2022). Retrieved from

https://www.aicpa.org/interestareas/frc/assuranceadvisoryservices/soc2report.html

Cybersecurity Frameworks & Best Practices:

Sherwood, J., Clark, A., & Lynas, D. (2005). Enterprise Security Architecture: A Business-Driven
Approach. CMP Books.

Kelley, D., & Moyle, E. (2023). Practical Cybersecurity Architecture: A Guide to Creating and
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OWASP Foundation. (2023). OWASP Top 10 Security Risks. Retrieved from https://owasp.org/www-
project-top-ten/

Microsoft Zero Trust Security Model. (2021). Retrieved from

https://www.microsoft.com/security/blog/

Gartner. (2023). Zero Trust Security: A New Model for Secure Digital Banking.

National Institute of Standards and Technology (NIST). (2020). NIST Special Publication 800-207: Zero
Trust Architecture. Retrieved from https://www.nist.gov/publications/zero-trust-architecture

Recent Cybersecurity Incidents & Case Studies:

Capital One Data Breach (2019). U.S. Department of Justice. Retrieved from
https://www.justice.gov/opa/pr/capital-one-hacker-charged

MOVEit Transfer Data Breach (2023). Security Week. Retrieved from

https://www.securityweek.com/moveit-hack/

SolarWinds Supply Chain Attack (2020). Cybersecurity & Infrastructure Security Agency (CISA).
Retrieved from https://www.cisa.gov/news-events/cybersecurity-advisories

Equifax Data Breach (2017). Federal Trade Commission (FTC). Retrieved from
https://www.ftc.gov/equifax-data-breach
Uber Data Breach (2022). TechCrunch. Retrieved from https://techcrunch.com/2022/uber-security-
breach/

Bangladesh Bank Heist (2016). SWIFT Payment Network Attack. Retrieved from
https://www.reuters.com/article/us-cyber-heist-bangladesh-exclusive-idUSKCN11Y2A2

Colonial Pipeline Ransomware Attack (2021). Cybersecurity & Infrastructure Security Agency (CISA).
Retrieved from https://www.cisa.gov/news-events/alerts/colonial-pipeline-ransomware-attack

Target Data Breach (2013). U.S. Senate Report on Retail Cybersecurity. Retrieved from
https://www.hsgac.senate.gov/imo/media/doc/REPORT_Target_Cyber_Breach.pdf

Security Tools & Technologies Referenced:

Palo Alto Networks. (2023). Next-Generation Firewalls & Zero Trust Security. Retrieved from
https://www.paloaltonetworks.com/

IBM Security. (2023). QRadar SIEM & Trusteer Fraud Detection. Retrieved from
https://www.ibm.com/security

CrowdStrike. (2023). Endpoint Detection & Response (EDR/XDR) for Financial Institutions. Retrieved
from https://www.crowdstrike.com/

AWS Security. (2023). Cloud Security & API Protection in Banking. Retrieved from
https://aws.amazon.com/security/

Splunk. (2023). Security Information and Event Management (SIEM) for Banking Security. Retrieved
from https://www.splunk.com/

YouTube & Podcast References:

Security Architecture Design Principles - CISSP. (2023). [YouTube]. Retrieved from

https://www.youtube.com/watch?v=443KZj-qjI8

Layered Architecture for Beginners. (2023). [YouTube]. Retrieved from

https://www.youtube.com/watch?v=p2KzUDiNToM

What is Zero Trust Architecture? (2023). [YouTube]. Retrieved from

https://www.youtube.com/watch?v=txPZa3wLIOE

Security Architecture and Risk Management. (2023). [YouTube]. Retrieved from

https://www.youtube.com/watch?v=4L54iP6Aed0

Incidence of Coincidence - Cybersecurity Podcast. (2024). Retrieved from (your provided transcript
from tactiq.io)