Big Data, Big Risks in Finance
The financial services sector juggles a colossal amount of data daily – think quintillion bytes from banking customers alone.
This data is the lifeblood of the industry, but it also makes it a prime target. If it's not being held for ransom, it's being sold on the dark web or used to cause mayhem. Unsurprisingly, the financial sector is consistently ranked as one of the most 'at risk' for cyberattacks.
Financial services firms are juicy targets because they're trusted institutions, often more likely to pay a ransom to protect their customers' data. For cybercriminals looking to steal information, there are few better options.
The Financial Sector by the Numbers
The stats paint a pretty stark picture for financial services
Average cost of a data breach.
Proportion of all cyberattacks that hit the financial sector.
Average time it takes financial firms to spot and stop a data breach.
Percentage of financial services attacks that compromised customer personal data
Financial institutions that suffered a ransomware attack in 2023 (up from 55% in 2022).
Average value of a single piece of personal data on the dark web.
Common Cyber Threats Facing Finance
Knowing what you're up against is half the battle. Here are the usual suspects:
Remote Access Takeovers
Fraudsters tricking their way into systems. The UK's fraud reporting centre noted £3.8 million lost this way since June 2023.
Ransomware
Still a massive headache. A 2023 report found 64% of financial services firms experienced a ransomware attack in the last year – double the 2021 figure. All that sensitive data is just too tempting.
Phishing
Getting ever more sophisticated. Financial institutions were the most targeted globally in Q2 2023, accounting for nearly a quarter of all such attacks.
DDoS (Distributed Denial of Service) Attacks
Overwhelming a business's servers to take them offline. EMEA financial services firms saw the majority (63.5%) of these between Q2 2022 and Q2 2023.
Nation-State Attacks
No longer just a spy movie trope. These target high-profile entities or those with valuable IP. The IMF even issued a warning in 2021. Groups linked to North Korea, for instance, are estimated to have swiped $2 billion over five years.
Malware
The broader family of malicious software – spyware, adware, worms, viruses. All designed to steal, disrupt, or hold data hostage.
Lessons from Major Attacks
We're not here to scare you, but it’s worth remembering that even the big players get hit. These examples should spur everyone to up their game:
SWIFT Banking Hack (2015-16):
Attackers exploited an unpatched vulnerability, nabbing $81 million from Bangladesh Central Bank and $12 million from an Ecuadorian bank. (Type: Remote access takeover)
Seven Biggest UK Banks (2018)
A DDoS attack, using malware rented for just £11, temporarily shut down operations for several major UK banks. (Type: DDoS)
Equifax (2017)
Unpatched systems allowed attackers to steal data from over 147 million customers. The lack of subsequent fraud suggests it might have been nation-state espionage. (Type: Malware/nation-state)
Equifax (2017)
Unpatched systems allowed attackers to steal data from over 147 million customers. The lack of subsequent fraud suggests it might have been nation-state espionage. (Type: Malware/nation-state)
CNA Financial (2021)
A ransomware attack hit this major US insurer, affecting over 75,000 customers and costing the company $40 million to recover. (Type: Ransomware)
NotPetya (2017)
Disguised as an update for Ukrainian accounting software, this attack spread globally, causing an estimated $10 billion in damages. (Type: Supply chain)
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Protecting Your Financial Services Business
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Start with Your Own House
Before you worry about anything else, get your own cybersecurity sorted. This means secure people, processes, and technology.
Key Protective Measures
Patch Software Regularly: Updates fix known holes cybercriminals love to exploit. Stick to reputable software.
Deploy access controls
Limit who can access sensitive data. Use different access levels and user profiles.
Set Up a Password Policy
Enforce strong, unique passwords and always use multi-factor authentication (MFA).
Get Cyber Essentials Certified
This government-backed scheme is a must-have for financial services. It covers the fundamentals and protects against around 98.5% of common threats. Consider Cyber Essentials Plus and ISO 27001 for even more robust security.
Consider Cyber Insurance
Increasingly vital, especially for targeted sectors. It could be the difference between a swift recovery and game over.
Secure Your Data
Encrypt sensitive data so it's useless if stolen. Regularly back up everything using the 3-2-1 rule (three copies, two different media, one offsite).
Train Your Employees
Your team is your first line of defence. Simple, regular training helps them spot and stop threats.
Create an Incident Response Plan
If the worst happens, you need a clear plan to respond quickly and effectively. Everyone should know it.
Focus on Your Supply Chain.
Supply chain attacks are a huge risk. It’s not just about your security; it's about theirs too.
Talk to Your Suppliers
A simple chat can reveal a lot about their cybersecurity posture. It also keeps you top of mind if things go sideways.
Write Cybersecurity into Contracts
Clearly define security expectations. Requiring certifications like Cyber Essentials or ISO 27001 can hold suppliers accountable.
Assess Supplier Risk
Especially if you use many third parties, have a structured way to measure their risk.
Follow NCSC Guidelines
The National Cyber Security Centre offers excellent advice on supply-chain best practices.