What Are the Biggest Threats to Cybersecurity in Banking and Finance?

What Are the Top Cyber Threats to the Banking Industry?

The top cyber threats to banking industry include:

1. Ransomware attacks

Ransomware is a type of malicious software that encrypts a victim’s files. The attacker then demands payment for the decryption key, usually in untraceable cryptocurrency.

The impact of a ransomware attack on a bank or financial system can be severe, and attackers are increasingly targeting banks because of the large amounts of sensitive data and high-value assets they hold. The encryption of sensitive data and systems can result in significant disruptions to operations, and the lack of service, fraud, and loss of personal information may affect customers and the bank’s reputation.

2. Lack of cloud asset management

In a cloud-based attack, an attacker targets a bank’s cloud infrastructure, seeking to compromise sensitive data or disrupt operations. The technology trends leading to cloud computing present several challenges for risk management and securing against attacks. The challenges of cloud-based bank cybersecurity include:

• The use of shared infrastructure makes it more difficult to control access to sensitive data.
• The complex nature of cloud environments can make it challenging to detect and respond to threats.
• The need to manage and secure a large number of interconnected systems and applications. Without proper cloud asset management, cloud migration only increases vulnerabilities and risks.

Check out this case study that details how a global financial services organization was able to reach its target of 100% asset visibility.

3. Insider threats

An insider threat in financial services cybersecurity refers to a threat from within an organization, such as employees, contractors, or partners with access to sensitive information, systems, and infrastructure. These threats can cause widespread damage by intentionally or unintentionally misusing that access.

Insider threats can have various motivations, such as financial gain, revenge, and political or ideological beliefs. They can carry out their malicious activities in multiple ways, such as stealing confidential data, compromising systems, or disrupting banking services.

4. Advanced Persistent Threats (APTs)

Advanced Persistent Threats (APTs) are a new breed of cyber threats that are both highly sophisticated and difficult to detect. They are a growing concern for cybersecurity in banking, where protecting sensitive financial information and transactions is of utmost importance.

Highly skilled and well-funded attackers often carry out APTs with a specific target in mind, usually a financial institution, and are willing to invest significant time and resources to achieve their objectives. The threat actors use a combination of social engineering tactics, malware, and network exploitation to gain a foothold in a target bank’s network and then remain undetected for long periods while they exfiltrate sensitive information.