Financial Institutions Are Protecting the Wrong Layer—Here’s What Needs to Change

December 14, 2025
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5 min

The Industry’s Blind Spot: What Happens After Authentication

Most security strategies focus on who is logging in and from where. Once authentication succeeds, trust is implicitly granted. This approach, however, overlooks the critical phase that follows authentication, where credentials, keys, or admin privileges become fully usable — and fully exploitable. This is why:

  • Phishing still works, even with MFA
  • Insider risk remains one of the hardest problems to manage
  • A single compromised device or account can still lead to systemic impact

The issue isn’t authentication. It’s what happens after access is granted.

Security Built on Secrets Is Fragile by Design

Traditional security models assume that secrets can be safely stored, shared, and rotated. In reality, secrets are copied, cached, logged, and exfiltrated — often invisibly. Once a credential exists in a usable form, it becomes a liability:

  • Employees can accidentally expose it
  • Attackers can extract it from compromised systems
  • Third parties can over-retain access

Controls layered around secrets don’t change the underlying risk.

The Shift That’s Required: Protect the Action, Not the Credential

Modern threats require a different approach — one where:

  • Secrets are never revealed or persisted
  • High-risk actions require explicit approval
  • Access is temporary, scoped, and cryptographically enforced
  • Every use of sensitive capability is provable and auditable

Instead of asking “Who has the credential?”, the better question is: “Who is allowed to perform this action, right now, under these conditions?” This is the difference between identity-centric security and action-centric security.

Why This Matters More for Financial Institutions

Banks operate in environments where:

  • A single wire transfer can have irreversible impact
  • Regulatory scrutiny demands provable controls
  • Third-party access is unavoidable
  • Digital assets introduce new custody and authorization risks

Security models built on static trust and long-lived credentials simply don’t scale to this reality.

What Comes Next

The next evolution of security won’t replace IAM, PAM, or MFA — it will sit beneath them. It will:

  • Enforce control cryptographically, not procedurally
  • Eliminate single points of failure
  • Make compliance a property of the system, not a reporting exercise

Financial institutions don’t need more alerts. They need fewer secrets — and stronger guarantees about how critical actions are authorized. That’s the layer worth protecting.

Tristan Morris
CEO, Co-Founder @ SplitSecure
A prodigy who started attending college at age 12. After graduating from Cornell with a degree in Aerospace Engineering, Tristan went on to lead product for Federal Security at KNOX, Samsung’s military and defense cybersecurity group.
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