Telcos and ISPs: The time to prioritise cyber security is now

Anthony Laing, General Manager of Networking at NEC XON. (Image: NEC XON)

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Cyber criminals have historically targeted banks and financial institutions for a simple reason: money. With direct access to high-value data, including personal, credit card and payment details, banks were natural targets for phishing schemes, ransomware and insider threats. Ageing legacy systems sometimes provided security loopholes while the rise of digital banking and remote access services expanded attack surfaces.

In response, financial institutions poured resources into building robust cyber security systems. Today, they’re among the most fortified industries, with sophisticated threat detection, encrypted communications and compliance with strict regulatory standards. Now, a second tier of cyber crime targets is drawing the wrong kind of attention.

As banks and similarly targeted sectors tightened their defences, hackers sought softer targets. Telecommunications companies (telcos) and internet service providers (ISPs) have sometimes lagged in adopting robust measures. Once overlooked, telcos and ISPs are now firmly on cyber criminals’ radar. While they may not handle money directly, they carry something just as valuable: data. Unless they act decisively, they risk severe reputational damage, financial losses for themselves and their customers, and operational disruption.

Telecoms networks are the arteries through which businesses, governments and individuals transmit information. These networks carry sensitive data for industries that include healthcare, banking and retail. An attack on a telco could disrupt services, intercept valuable communications or cripple a nation’s digital infrastructure. Moreover, telcos themselves hold vast amounts of customer data, from contact information to personal identifiers. This treasure trove can be exploited for phishing, vishing (voice phishing), identity theft or even corporate espionage.

For telcos and ISPs, the stakes are high. A breach not only risks customer trust but also threatens long-term reputational damage. When customer data is leaked, the fallout can be catastrophic. Customers blame their service providers for failing to safeguard their information, and the brand suffers irreparable harm. In an industry where competition is fierce, the ability to retain customer loyalty hinges on trust – something that can’t afford to be compromised.

Telcos and ISPs sometimes lack even the basics of cyber security, and may have small teams managing network security for systems that serve tens or hundreds of thousands of consumers and businesses. We have seen key features missing from telco and ISP cyber security, including:

• Authentication protocols: Multifactor authentication (MFA) to prevent unauthorised access.
• Network monitoring: Real-time detection of unusual activity.
• Incident response plans: Preparedness to mitigate and recover from attacks quickly.
• Employee training: Ensuring staff are aware of common threats like phishing and social engineering.
• Regular updates and patches: Closing vulnerabilities in systems and software.

Telcos and ISPs must act with urgency. They cannot afford to ignore the rising tide of cyber threats or assume they’re safe because they’re not financial institutions. Cyber security is no longer a "nice-to-have" but a fundamental operational necessity. To catch up, telcos and ISPs should consider the following strategy:

• Conduct a comprehensive security audit: Identify vulnerabilities in infrastructure, operations and data handling practices.
• Invest in advanced threat detection: Implement AI-driven tools for real-time monitoring and anomaly detection.
• Adopt zero trust architectures: Ensure no user or device is trusted by default, even within the network.
• Strengthen customer data protection: Use encryption, tokenisation and secure authentication methods to protect customer information.
• Collaborate with experts: Partner with experienced cyber security providers to leverage their knowledge and technology.

As the gatekeepers of modern communication, telcos and ISPs have a duty to protect the data they carry. But telcos and ISPs don’t have to face these challenges alone. The right partner brings extensive expertise in networking and cyber security. With NEC XON’s help, telcos and ISPs can implement proactive measures to stay ahead of cyber criminals. For telcos and ISPs, investing in cyber security is no longer optional – it’s essential for survival in a digital-first world.