In 2024, the cyber threats financial services face are growing in complexity, making cybersecurity essential to protect sensitive data and keep your client’s trust. Nearly 25% of all cyberattacks in the U.S. target financial institutions, putting banks, insurance firms, and investment companies on high alert. With these threats evolving, your organization needs strong cyber security solutions to keep data safe and stay ahead of attackers.
Read on to learn more about cyber threats to the financial services industry.
The following are some of the key cyber threats in financial services:
Phishing attacks remain one of the top cyber threats in the financial service industry. In fact, attacks now use AI-driven tools to craft convincing emails and messages. Recent research has even shown that over 60% of phishing victims fell victim to AI-automated phishing. This makes the success rate of AI phishing higher than that for human-created messages.
These scams often impersonate trusted sources, tricking employees into revealing sensitive information. In cyber security for financial services, training your team to recognize phishing attempts and verify unexpected requests is critical to keeping attackers at bay.
Ransomware is malware that has cost organizations millions of dollars. Sadly, more than 20% of all cyberattacks are due to ransomware.
Ransomware involves malware that holds the devices or sensitive data of the user hostage. The information is locked away until the user pays a ransom to the attacker so that they can access it. The attackers often move quickly and in less than four days they will have already deployed the ransomware.
Thus, organizations are not given time to detect or even stop the attack. In many cases, the attackers ask for seven to eight figures. In addition, the company will be required to spend close to 5.68 million USD to deal with the issue.
APTs use sophisticated hacking technology, which hides and can remain inside the system for a very long time.
In many cases, you may not even detect the presence of APT. Meanwhile, the attackers can steal data and even spy on your organization. Financial institutions are especially vulnerable to APTs because of the valuable data they handle. To stay secure, use continuous monitoring and advanced detection tools to catch any unusual activity early on.
As a financial institution, you likely rely on third-party vendors, which can open up potential weak points. In supply chain attacks, cybercriminals breach your network by targeting vendors or contractors with weaker security.
To prevent this, establish strict vendor protocols and regularly assess each vendor’s cybersecurity practices so you can reduce risks and keep your data secure.
Internal employees or contractors who have access to sensitive data can pose a serious risk, whether intentionally or accidentally. Either way, this can have a detrimental effect on the company.
To prevent insider threats, set up strict access controls, monitor for unusual activity, and provide regular training so your team understands how to protect sensitive information.
Cloud computing is a great invention that can greatly benefit an organization. If your organization has moved data or systems to the cloud, then securing these resources is critical. Weak security setups, improper access management, and lack of encryption can all leave your data exposed.
Some of the cloud security threats include
Data breaches
API insecurities
Account hijacking
Poor authentication controls
Misconfiguration
You should ensure that your cloud services are configured properly, use encryption to protect data and conduct regular audits to catch any vulnerabilities early.
As financial services use more APIs to share data across platforms, attackers see these as new entry points. If APIs aren’t properly secured, they can be a gateway for data breaches. Securing your APIs with strong authentication, encryption, and regular monitoring can help you protect sensitive data from unauthorized access.
Financial services, including banks, are especially vulnerable to cyber attack vectors in a bank and some of the common attack methods include:
Malware and Ransomware: Attackers use malicious software to steal data or block access to it.
DDoS Attacks: These attacks overload your systems, aiming to disrupt services and damage customer trust.
Social Engineering: Attackers trick employees into giving up sensitive information.
Credential Stuffing: Hackers use leaked passwords to break into systems.
The cyber threats financial services face in 2024 are significant and demand strong defenses. For customized cyber security solutions designed specifically for the financial sector, Imagine IT provides advanced tools and expertise to protect your institution.
Imagine IT is a leading IT service provider that helps companies in the financial services industry protect their data. Contact Imagine IT today to learn more about cyber security threats in the financial sector, secure your business, and defend against the latest financial services cyber threats.
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