SWIFT, the global backbone for secure financial messaging, plays a critical role in enabling fast and reliable cross-border transactions. But as cyber threats grow more advanced, financial institutions must implement robust SWIFT security controls to safeguard their systems and prevent fraud.
The SWIFT Customer Security Programme (CSP) was established to enhance cybersecurity hygiene across its network, helping institutions protect against fraud and cyberattacks. This article explores key security controls within the SWIFT CSP compliance framework and outlines best practices for financial institutions to strengthen their SWIFT security posture.
What is SWIFT CSP?
The SWIFT CSP, launched in 2016, is designed to mitigate cybersecurity risks and enhance the overall security of financial institutions. The program includes the Customer Security Controls Framework (CSCF), which defines both mandatory and advisory security controls based on industry standards such as NIST, ISO 27001/2, and PCI DSS 4.0. These controls aim to secure financial institutions’ environments, restrict unauthorized access, and ensure timely detection and response to potential threats.
To learn more about SWIFT CSP, you may also check out our informative video on – What is the SWIFT Customer Security Programme (CSP)?
Key Security Controls in the SWIFT Framework
SWIFT CSCF has 32 security controls, in which 25 are mandatory and 7 are advisory controls. The difference between the mandatory controls and advisory controls is that the mandatory controls are considered extremely important, considering they set the baseline security that all users must adhere to, while advisory controls are recommended by SWIFT as best practices but are not strictly enforced.
Here are the three core objectives of SWIFT CSCF:
Secure Your Environment – Implementing controls to protect SWIFT-related systems from external and internal threats.
Know and Limit Access – Ensuring that only authorized personnel have access to critical systems.
Detect and Respond – Monitoring and responding to security incidents in a timely manner.
Below is the list of the 32 security controls with their principles.
1. Restrict Internet Access and Protect Critical Systems from General IT Environment
1.1 SWIFT Environment Protection
1.2 Operating System Privileged Account Control
1.3 Virtualisation or Cloud Platform Protection
1.4 Restriction of Internet Access
1.5 Customer Environment Protection
2. Reduce Attack Surface and Vulnerabilities
2.1 Internal Data Flow Security
2.2 Security Updates
2.3 System Hardening
2.4A Back Office Data Flow Security
2.5A External Transmission Data Protection
2.6 Operator Session Confidentiality and Integrity
2.7 Vulnerability Scanning
2.8 Outsourced Critical Activity Protection
2.9 Transaction Business Controls
2.10 Application Hardening
2.11A RMA Business Controls
3. Physically Secure the Environment
3.1 Physical Security
4. Prevent Compromise of Credentials
4.1 Password Policy
4.2 Multi-Factor Authentication
5. Manage Identities and Separate Privileges
5.1 Logical Access Control
5.2 Token Management
5.3A Staff Screening Process
5.4 Password Repository Protection
6. Detect Anomalous Activity to Systems or Transaction Records
6.1 Malware Protection
6.2 Software Integrity
6.3 Database Integrity
6.4 Logging and Monitoring
6.5A Intrusion Detection
7. Plan for Incident Response and Information Sharing
7.1 Cyber Incident Response Planning
7.2 Security Training and Awareness
7.3A Penetration Testing
7.4A Scenario-based Risk Assessment
Best Practices for Financial Institutions to Enhance SWIFT Security
Being SWIFT CSP compliant can bring many advantages to your organization along with enhanced security controls. To align with SWIFT CSP requirements, you should consider the following best practices:
1. Adopt a Risk-Based Approach
- Conduct regular risk assessments to identify vulnerabilities and address them proactively.
- Prioritize security measures based on potential impact and threat landscape.
2. Strengthen Access Controls
- Enforce the principle of least privilege by restricting access based on roles and responsibilities.
- Implement robust authentication mechanisms such as MFA.
- Regularly review and update access permissions.
3. Enhance Network Segmentation
- Isolate SWIFT-related infrastructure from general IT environments.
- Use firewalls and secure VPNs to control and monitor network traffic.
4. Implement Continuous Monitoring and Threat Detection
- Deploy Security Information and Event Management (SIEM) solutions for real-time monitoring.
- Regularly analyze logs to detect and respond to suspicious activities.
5. Regularly Update and Patch Systems
- Apply security updates to all SWIFT-related components to mitigate known vulnerabilities.
- Conduct periodic penetration testing to identify and remediate security gaps.
6. Enhance Security Awareness and Training
- Train employees on phishing, social engineering, and cybersecurity best practices.
- Conduct regular security drills to test incident response readiness.
Importance of Engaging Independent Assessors
To ensure compliance with SWIFT CSP requirements and improve security maturity, financial institutions should engage independent assessors. These experts:
- Provide an unbiased evaluation of SWIFT security implementation.
- Identify gaps in security controls and recommend improvements.
- Assist in compliance reporting and attestation processes.
By working with independent assessors, financial institutions can enhance their security resilience, meet regulatory expectations, and mitigate risks effectively.
Conclusion
SWIFT security is a critical component of financial institutions’ cybersecurity strategy. By implementing the best practices outlined in this article and adhering to SWIFT CSP security controls, you can protect your organization’s infrastructure, prevent fraudulent activities, and build a secure financial ecosystem.
Want to assess your SWIFT compliance or need expert guidance on securing your infrastructure? Fill out our inquiry form today and let our experts assist you in achieving a strong and compliant SWIFT security framework.
Narendra Sahoo (PCI QPA, PCI QSA, PCI SSF ASSESSOR, CISSP, CISA, CRISC, 27001 LA) is the Founder and Director of VISTA InfoSec, a global Information Security Consulting firm, based in the US, Singapore & India. Mr. Sahoo holds more than 25 years of experience in the IT Industry, with expertise in Information Risk Consulting, Assessment, & Compliance services. VISTA InfoSec specializes in Information Security audit, consulting and certification services which include GDPR, HIPAA, CCPA, NESA, MAS-TRM, PCI DSS Compliance & Audit, PCI PIN, SOC2 Compliance & Audit, PDPA, PDPB to name a few. The company has for years (since 2004) worked with organizations across the globe to address the Regulatory and Information Security challenges in their industry. VISTA InfoSec has been instrumental in helping top multinational companies achieve compliance and secure their IT infrastructure.
