The cybersecurity landscape is always shifting, with threats becoming more sophisticated all the time. In the banking and financial sector, the stakes are high: not only are large amounts of money at stake, but when banks and other financial systems are compromised, the disruption to the economy as a whole can be significant.
A key priority for banks should be raising awareness of cybersecurity issues among employees and making the most of innovative communication tools, such asDeskAlerts, to cut through the digital noise and ensure that important information is being received.
According to a report fromTrend Micro, in the first half of 2021 alone ransomware attacks in the banking industry increased by a whopping 1318% which was disproportionate to other industries.
The New YorkFederal Reservenoted a report that financial firms experience cyber attacks 300 times more than other industries – highlighting how attractive this sector is to cybercriminals.
The top cybersecurity threats in 2022 for banks
These are the top threats that are predicted to continue to cause grief for banks and financial institutions over the course of 2022.
1. Ransomware
Ransomwarehas been a major headache for organizations around the world for several years now and doesn’t look like stopping any time soon. This is a method of cybercrime where files are encrypted and users are locked out, with the criminals demanding money to re-access the system.
Organizations affected by ransomware attacks can find their systems crippled for extended periods of time, particularly if they don’t have backups.Paying ransoms to these criminals is also not guaranteed to result in your systems access being restored.
2. Ongoing risks from remote work
As the pandemic enters its third year, the reliance on remote work, hybrid workforces and cloud-based software systems has become almost ubiquitous. This also means that financial institutions have more potential cybersecurity vulnerabilities than ever before. Employees are no longer always accessing data on systems and networks that are controlled by the organization, so extra vigilance is necessary.
3. Cloud-based cyberattacks on the rise
As more software systems and data are stored in the cloud, cybercriminals have seized upon this and as a result an increase in cloud-based attacks has been one of the most prevalent cyber threats to the banking industry. Banks need to ensure that the cloud infrastructure is configured securely to protect from harmful breaches.
4. Social engineering
One of the biggest threats to banking and finance is social engineering. People are often the most vulnerable link in the security chain – they can be tricked into giving over sensitive details and credentials. This can equally affect a bank’s employees or its customers.
Social engineering takes many forms, it might be through phishing or whaling attacks or it could be by sending bogus invoices that purport to be from a trusted source. It’s important to keep your employees informed about social engineering tactics and how these threats continue to evolve.
5. Supply chain attacks
An increasingly popular method of malware distribution by cybercriminals is to target a software vendor and then deliver malicious code to customers and others in the supply chain in the form of products or updates that on the surface appear to be legitimate. These attacks compromise the distribution systems and enable the cybercriminals to enter the supplier’s customers’ networks.
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FAQs
Defending against cyberthreats is a critical and ongoing process that requires a proactive and multifaceted approach. Social engineering, third-party exposure, cloud vulnerabilities, ransomware, and IoT are the top threats that organizations should focus on to protect their data, systems, and reputations.
What are the top 5 emerging cyber security challenges? ›
Defending against cyberthreats is a critical and ongoing process that requires a proactive and multifaceted approach. Social engineering, third-party exposure, cloud vulnerabilities, ransomware, and IoT are the top threats that organizations should focus on to protect their data, systems, and reputations.
What is cybersecurity risk in banking? ›
Through fraudulent transactions, cyberattacks can result in significant financial losses for the customer and the banks. Attackers who steal sensitive data from a banking institution may sell it. Data that has been stolen is later misused.
What are the most popular banking threats come from? ›
Errors made by customers and employees are at the top of factors that threaten cyber security in banking the most. Therefore, banks and other financial companies need to warn their clients and employees about potential risks and teach them how to protect sensitive data and guard against cyber threats.
What are the 7 types of cyber security threats? ›
Know the types of cyber threats
- Removable media such as flash drives.
- Brute force attack using trial and error to decode encrypted data.
- Web or email attacks.
- Unauthorized use of your organization's system privileges.
- Loss or theft of devices containing confidential information.
You can put the NIST Cybersecurity Framework to work in your business in these five areas: Identify, Protect, Detect, Respond, and Recover.
What are the 5 C's of cyber security? ›
This article discusses and explains the 5 C's of cybersecurity—Change, Continuity, Cost, Compliance, and Coverage—highlighting their importance in modern-day digital defense mechanisms.
What are the top cybersecurity threats of 2024? ›
Generative AI (GenAI), unsecure employee behavior, third-party risks, continuous threat exposure, boardroom communication gaps and identity-first approaches to security are the driving forces behind the top cybersecurity trends for 2024, according to Gartner, Inc.
What is the biggest threat facing the banking industry today? ›
5 of the biggest cyber threats facing banks in 2022-2023
- Unencrypted information. In the event of a data breach, any data left unencrypted is immediately accessible to criminals. ...
- Insecure third parties. ...
- Insider vulnerabilities. ...
- Spoofing and phishing. ...
- Distributed Denial of Service (DDoS)
- Web Application Attacks. ...
- Malware. ...
- Ransomware. ...
- Distributed Denial-of-service Attacks (DDoS) ...
- Spam and Phishing. ...
- Corporate Account Takeover. ...
- Automated Teller Machine Cash Out.
6 Security Threats in Banking You Should Know
- Identity Theft. ...
- Spoofing. ...
- Ransomware. ...
- Business Email Compromise. ...
- Threats From an Internal Employee. ...
- DDoS. ...
- Audits and security checks. ...
- Educate Employees.
The major risks faced by banks include credit, operational, market, and liquidity risks. Prudent risk management can help banks improve profits as they sustain fewer losses on loans and investments.
What is the biggest danger when online banking? ›
The biggest risk of online banks is that someone will access your savings or checking account and steal your information and money. This typically happens when your account is hacked by cybercriminals who get your username and password. However, these risks are not limited to banks that operate exclusively online.
How do banks prevent cyber attacks? ›
Methods like multi-factor authentication (MFA) and encryption can stop attackers before any intrusion occurs.
What are the top 5 security threats for social media? ›
Social media threats are common. The top five social media security threats are phishing, social engineering, information disclosure, fake accounts, and malware.
What are the top cybersecurity threats for 2024? ›
A new report is predicting the top cybersecurity threats for 2024, noting the year could see an evolution in phishing strategies, a focus on the software supply chain and an exploitation of more widely used enterprise software like MOVEit.
What are the three most common security threats? ›
Cyber attacks that disrupt user provisioning and prevent users from accessing data are most frequently seen in the form of ransomware, distributed denial-of-service (DDos) attacks and network intrusions.
