Time and again, hackers have proven their ability to penetrate even the most sophisticated firewalls and security systems. This is particularly concerning for registered investment advisors (RIAs) and financial advisors like you, who handle sensitive client information on a daily basis. What’s more, the jargon surrounding cybersecurity can make it challenging to understand the available options. Terms like EDR, XDR, and MDR often swirl around, which may leave you wondering about their exact meaning and whether they offer adequate protection.
This guide aims to clarify these concepts and empower your firm to make informed decisions about intrusion detection and prevention systems.
What is intrusion detection and prevention?
Intrusion detection and prevention refers to a set of tools and procedures designed to protect computer networks, systems, and data from unauthorized access or misuse. It involves actively monitoring network traffic, identifying potential attacks, and taking steps to prevent them from being successful.
Understanding the basics: EDR, XDR, and MDR
There are several kinds of intrusion detection and prevention systems, and each has a distinct function. Some of the most common ones include endpoint detection and response (EDR), extended detection and response (XDR), and managed detection and response (MDR) systems.
Endpoint detection and response
As the name suggests, EDR focuses on detecting threats at the endpoint level, which includes individual devices such as laptops, desktops, and mobile phones. EDR systems collect data from these endpoints to identify any suspicious activity and provide real-time alerts to security teams so they can take action.
Extended detection and response
Similar to EDR, XDR focuses on endpoint detection but goes a step further by also monitoring network and cloud environments. This allows for a more comprehensive view of potential threats and helps in faster detection and response.
Managed detection and response
Unlike EDR and XDR, MDR is a fully managed service where an external team monitors your network for potential threats. It uses advanced tools and techniques to detect suspicious activities, conduct investigations, and offer remediation suggestions. This type of intrusion detection and prevention system is ideal for smaller firms that may not have the resources to manage one themselves.
Leveraging Microsoft Defender for intrusion detection and prevention
If you have a Microsoft 365 subscription, you already have access to a powerful intrusion detection and prevention system: Microsoft Defender. This integrated security suite offers advanced threat protection for all endpoints, email, collaboration tools, and cloud services.
With features such as real-time monitoring, behavioral analysis, and automated response capabilities, Microsoft Defender can effectively detect and prevent intrusions before they cause any harm. It also provides detailed reports and insights on potential threats, helping you stay on top of your network security.
Microsoft Defender for Endpoint
Defender for Endpoint is the EDR component of Microsoft Defender. It’s an ideal choice for RIAs and financial advisors because it offers a range of features that are highly suitable for them, including:
- Real-time threat detection – continuously monitors endpoints and uses machine learning algorithms to identify patterns of suspicious activity
- Automated response – takes immediate action to stop and remediate threats, reducing the need for manual intervention
- Threat intelligence – leverages global threat data from Microsoft and other sources to stay ahead of emerging threats
Microsoft Defender XDR
Formerly called Microsoft 365 Defender, Microsoft Defender XDR is a security operations platform that provides unified security and visibility across your endpoints, platforms, and cloud environments. Some of the features that make it a powerful intrusion detection and prevention system include:
- Centralized monitoring – provides a single dashboard to monitor and manage security across all endpoints, platforms, and clouds
- Streamlined investigation and response – uses AI-powered analytics to identify and prioritize threats, making it easier for security teams to take action
- Improved SOC productivity – automates routine tasks and provides advanced threat hunting capabilities, freeing up time for the security operations center (SOC) to focus on more critical issues
MDR with Microsoft Defender
While Microsoft Defender is not a standalone MDR solution, it can serve as the foundation for MDR services. Managed IT services providers (MSPs) can leverage the capabilities of this powerful security suite to fully service their clients’ intrusion detection and prevention needs. With the added benefit of 24/7 monitoring and response by a team of experts, MDR with Microsoft Defender offers a comprehensive solution for RIAs and financial advisors.
Easing compliance with intrusion detection and prevention
The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) have strict guidelines for RIAs and financial advisors when it comes to protecting client information. Failure to comply with these can result in hefty fines and reputational damage.
For this reason, it’s crucial to have a strong intrusion detection and prevention system in place to remain compliant. The details of your intrusion detection system and intrusion prevention system should be clearly documented in your security policies and procedures, as these demonstrate your efforts to maintain a secure environment for your clients’ data. Your IT team or MSP can ensure your systems are up to date and meet compliance standards.
For more information on how to protect your RIA or financial advisory firm from intrusions, contact RIA WorkSpace today. We can help you leverage Microsoft Defender and implement other security measures to keep your digital assets safe.