The FinServ Threat Landscape

Recent trends show an alarming increase in sophisticated cyber-attacks. Cybercriminals now deploy advanced techniques like deep fake technology and AI-powered attacks, making it increasingly difficult for banks to differentiate between legitimate and malicious activities. These developments necessitate a shift towards more sophisticated and adaptive cybersecurity measures.

Take these industry statistics, for example:

• Financial firms report 703 cyberattack attempts per week.
• On average, 270 attacks (entailing unauthorized access of data, applications, networks, or devices) occurred in financial services, an increase of 31% compared with the prior year.
• On average, financial services businesses take an average of 233 days to detect and contain a data breach.
• 43% of senior bank executives don't believe their bank is adequately equipped to protect customer data, privacy, and assets in the event of a cyberattack.
• The average data breach cost in financial services is $5.72 million per incident.

State-sponsored cyberattacks also pose a unique threat to the financial sector. These attacks are often highly sophisticated and well-funded, aimed at destabilizing financial systems or stealing sensitive economic information.

Community banks must be prepared to defend against these high-level threats, which require a different approach than conventional cybercriminal activities. Similarly, in recent times, there has been a concerning trend where major service providers catering to small-medium-sized banks, such as FIS, Fiserv, and Jack Henry, have become prime targets for cyber-attacks. Targeting these service providers allows threat actors to widen their net and make their attempts more efficient, as compromising a single service provider can potentially provide access to multiple small banks.

This underscores the critical importance of strong vendor management governance. Community banks must be prepared to defend against these high-level threats, which require a different approach than conventional cybercriminal activities. Proactive measures can be taken to overcome the threats facing the FinServ industry. Companies like ArmorPoint provide complimentary Cybersecurity Workshops where they have seasoned cybersecurity experts identify specific security gaps and produce recommendations to mitigate those risks.

Top 5 FinServ Cybersecurity Challenges and How to Overcome Them:

Advanced Cloud Security Strategies: Cloud computing, with its numerous benefits of scalability, flexibility, and cost-effectiveness, is increasingly being adopted by financial institutions. However, this shift introduces specific security concerns that can be challenging to manage. The complexity of cloud security stems from the need to protect data across diverse and dynamic environments.

Ransomware: Beyond Basic Defense: Ransomware attacks in the financial sector have become increasingly sophisticated, leveraging tactics like "Ransomware as a Service" (RaaS) to target institutions.

Comprehensive Vendor Risk Management: Financial institutions increasingly rely on third-party vendors for a range of services, from cloud computing to customer relationship management.

Regulatory Compliance: Navigating a Complex Landscape: The regulatory landscape for cybersecurity in the financial sector is intricate and constantly evolving.

Bridging the Cybersecurity Talent Gap: The cybersecurity talent gap poses a significant challenge for financial institutions.