3 Big Threats of Cyber Attacks for the Financial Industry

The financial industry has undergone significant changes in the last few decades due to technological advances that have paved the way for innovation and ease of transactions. But with these advantages, the financial industry has also become an easy target for increasingly sophisticated cyber-attacks. This article will discuss three cybersecurity threats that haunt the financial sector in the current digital era.

1.Malware and Ransomware Attacks

One of the biggest threats in cyber security to the financial industry is malware and ransomware attacks. Malware is malicious software designed to damage, access, or steal data without permission. On the other hand, ransomware is malware that encrypts data and demands a ransom to recover it. The financial industry is often a prime target for these attacks due to the sensitive data and money available.

Malware attacks can cause huge losses, such as:

• Customer personal data theft.
• Access bank accounts.
• Control the user’s computer as a whole.
• Damaging the company’s reputation and customer trust.

In addition, ransomware attacks can also cause significant losses, such as:

• Can block data access to critical systems and data.
• Serious operational disruption.
• Significant financial losses.

To protect themselves from these threats, the financial industry must invest in robust security systems, regular software updates, employee training on cybersecurity practices, and an effective disaster recovery plan.

2.Phishing and Social Engineering Attacks

Phishing and social engineering attacks are another serious financial industry threat. In a phishing attack, an attacker attempts to obtain sensitive information, such as passwords or financial information, by impersonating a trusted entity via email, text messages, or a fake website.

Apart from that, social engineering is a threat that involves psychological manipulation of a person or, in this case, an employee to gain access to a system or sensitive information. Attackers often exploit humans’ lack of vigilance or ignorance of security practices.

The financial industry must increase employee awareness of phishing and social engineering attack tactics to deal with these attacks. For example:

• Provide regular training and penetration testing that can help identify vulnerable areas.
• Implement additional security measures, such as two-factor authentication (2FA), which can help reduce the risk of these attacks.

3.DDoS (Distributed Denial of Service) attacks

A DDoS attack is a type of attack that aims to disrupt service availability by flooding a website or network with fake internet traffic. DDoS cyber-attacks target the financial industry because attackers want to create instability in company operations, resulting in financial losses and reputational harm. DDoS cyber security threats can also damage daily operations and disrupt customer service.

Therefore, companies need a robust monitoring system and a specific response plan to deal with DDoS attacks. This could include:

• Use of cybersecurity services to help protect IT infrastructure from DDoS attacks.
• Increase server capacity so bandwidth is still available when traffic spikes occur.
• Use layered protection such as anti-spam, VPN, content filtering, firewall and other security systems.
• Limit access entering or leaving the system so that traffic entering or leaving devices and servers can be filtered.
• Updating the operating system to improve or cover parts vulnerable to cyber-attacks.

How can the financial industry avoid cyber-attacks?

The financial industry has become a significant target of cyber-attacks due to the sensitive data and money available in their systems. Therefore, protecting ourselves from cyber security threats is a top priority for the financial industry. How to?

1.Increase Security Awareness

Employees should be given regular training on cyberattack tactics and identifying them. Employees must also understand the importance of security practices such as:

• Use of strong passwords.
• Handle emails and attachments with care.

2.Use of Two-Factor Authentication (2FA)

Using two-factor authentication is an essential step in protecting accounts and system access. Users must provide two proofs of identity to access their accounts, making it more difficult for attackers to access them.

3.Data Encryption

Sensitive data should always be encrypted in storage and when moving to other systems. This can reduce the risk of data theft from cyber-attacks. 

4.Monitoring and Security Plan

Equip the financial industry with sophisticated monitoring tools to identify incoming cyberattacks so that preventive measures can be taken. In addition, the financial sector should also have a good security plan. This plan covers the steps during a cyberattack, including how to isolate the attack and system recovery. 

5.Partnership with Security Experts

Working with cybersecurity service providers and security experts can help improve system security, especially in the financial industry. 

Conclusion

In an increasingly connected world, cybersecurity is a challenging task. The financial industry must continue to understand and take cyber threats seriously to protect their customers’ finances, data, and reputation. With suitable investment in technology, training, and understanding of these significant threats, the financial industry can maintain a high level of security and minimize the risk of cyberattacks. Secure your economic infrastructure with Vidia Cloud as the latest cybersecurity solution. Ensure that financial industry operations run smoothly and are safe from costly cyberattacks.