Understanding the Latest Cyber Threats to Financial Services

cyber threats, financial services, safeguard assets

Did you know that cyberattacks targeting financial institutions increased by 238% in the first half of 2020, according to VMware? The average cost of a data breach in the financial sector in 2021 is a staggering $5.72 million, as reported by IBM and the Ponemon Institute. These numbers highlight the alarming extent of cyber threats faced by the financial services industry.

With financial services firms being 300 times more likely to be targeted by cybercriminals than any other industry, it’s crucial to understand the top cyber threats facing this sector and implement effective strategies to safeguard assets.

Phishing: A Growing Threat to Financial Services

Phishing attacks have become an increasingly prevalent form of social engineering in the financial sector. These attacks, which often start with deceptive emails, have proven to be highly effective for cybercriminals, with over 90% of successful cyberattacks beginning with a phishing attack.

As the sophistication of phishing emails continues to advance, they have become harder to recognize, resulting in a higher conversion rate for cybercriminals. In fact, attacks targeting financial apps witnessed a 38% increase during the first half of 2021 alone. Financial institutions are particularly vulnerable to phishing attacks, making them the most targeted sector for such attacks in Q1 of 2021, accounting for nearly half of all phishing attempts in 2019.

Compounding the threat, cybercriminals now align their phishing tactics with current news stories to exploit societal anxieties. For instance, during the COVID-19 pandemic, phishing attacks related to stimulus checks, healthcare information, and remote work have surged.

• Over 90% of successful cyberattacks in the financial sector start with a phishing attack
• Phishing emails are becoming more sophisticated, making them harder to recognize
• Attacks targeting financial apps increased by 38% in the first half of 2021
• Financial institutions accounted for almost half of all phishing attacks in 2019

Financial services organizations must remain vigilant and educate their employees about phishing techniques to mitigate the risk of falling victim to these attacks. Implementing strong email security measures and conducting regular security awareness training are key strategies for safeguarding valuable financial information and maintaining trust among clients and customers.

Protecting Against Phishing Attacks

To effectively combat phishing attacks, financial services firms should consider the following preventive measures:

1. Implement robust email security solutions to detect and block phishing emails before they reach users’ inboxes
2. Train employees to identify phishing emails and report suspicious messages immediately
3. Regularly update and patch software to address known vulnerabilities that cybercriminals may exploit
4. Utilize multi-factor authentication to add an extra layer of security for accessing sensitive financial systems and applications
5. Conduct simulated phishing exercises to assess employee readiness and identify areas that need improvement
6. Stay informed about the latest phishing trends, techniques, and attack vectors to proactively defend against evolving threats

By prioritizing cybersecurity awareness and taking proactive measures to counter phishing attacks, financial services organizations can enhance their defenses and protect their assets from the growing threat of cybercrime.

Ransomware: A Critical Cyber Risk for Financial Services

Ransomware attacks have become a significant cyber risk for financial services. These attacks pose a serious threat to the security and operations of financial institutions, potentially leading to data breaches and significant financial losses.

Paying a ransom to cybercriminals can significantly impact the costs of remediation for financial institutions. In fact, research has shown that paying a ransom could double the overall cost of recovering from a ransomware attack.

Between February and April 2020, ransomware attacks against the financial sector increased by an alarming ninefold, highlighting the growing prevalence and severity of this type of cyber attack in the industry.

Phishing and ransomware attacks specifically targeting banks saw a staggering 520% increase between March and June of 2020. This sharp rise in attacks underscores the urgency for financial services firms to prioritize their cybersecurity measures to protect against ransomware threats.

Furthermore, in the first half of 2021, there was a notable 151% increase in ransomware attacks compared to the same period in 2020. This increase further emphasizes the ongoing and escalating threat that ransomware presents to financial services.

To effectively mitigate the risk of ransomware attacks, financial services firms must stay informed about the most prevalent ransomware strains, such as Ryuk, Maze, and Sodinokibi. Understanding the characteristics and tactics employed by these strains enables organizations to better tailor their incident response plans and implement proactive security measures.

Implementing robust cybersecurity measures, regular employee training, and comprehensive incident response plans are crucial for financial services organizations to prepare for and respond to ransomware attacks. By taking proactive steps to mitigate the risk of ransomware, financial institutions can safeguard their sensitive data, protect their reputation, and minimize the potentially catastrophic impacts of a successful ransomware attack.

Critical Vulnerabilities in Financial Services: SQL Injections, LFI, XSS, and OGNL Java Injections

The financial sector is highly susceptible to cyber attacks, with SQL injections, local file inclusion (LFI), cross-site scripting (XSS), and OGNL Java injections being four of the most prevalent vulnerabilities. These attack vectors alone have been responsible for 94% of observed cyber attacks within the financial industry. Inadequate security measures in widely used software such as WordPress plugins and e-commerce websites have exposed financial institutions to exploitation.

To mitigate these risks, financial services firms must prioritize the implementation of secure coding practices. By adhering to strict coding guidelines, developers can prevent SQL injections, which involve malicious code being inserted into a website’s database query, by validating and sanitizing user input. Additionally, regular security testing is paramount in identifying vulnerabilities in web applications and promptly addressing them before they can be exploited by cybercriminals.

Cross-site scripting poses another significant threat to financial services. By injecting untrusted scripts into web pages viewed by users, cybercriminals can steal sensitive information or perform unauthorized actions on behalf of unsuspecting users. Implementing proper input validation and output encoding can effectively mitigate this risk. Similarly, financial institutions must pay attention to LFI and OGNL Java injections, vulnerabilities that allow attackers to read local files or execute arbitrary Java code respectively.

Financial services firms must adopt a multi-layered security approach that includes regular software updates, robust firewalls, and intrusion detection systems. Continuous monitoring is also essential to swiftly identify and respond to any potential attacks. By actively addressing these critical vulnerabilities, financial institutions can strengthen their cybersecurity posture, safeguard customer data, and protect their reputation in the face of evolving cyber threats.

Source Links

• https://www.imperva.com/learn/data-security/financial-services-cybersecurity/
• https://fieldeffect.com/blog/financial-services-cyber-threats/
• https://www.upguard.com/blog/biggest-cyber-threats-for-financial-services