The financial sector is uniquely vulnerable to security challenges, primarily because it handles large sums of money, Personal Identifiable Information (PII), and provides sensitive services to customers such as loan processing, investment management, and transaction facilitation. This industry is a prime target for cybercriminals, not only due to its lucrative nature but also because of the high degree of trust customers place in financial institutions to manage their funds. A cyberattack can multiply the damage by tarnishing the institution's reputation, leading to significant brand damage and loss of business.
Why Finance Is on Phishing Attackers’ Minds
Financial assets are a focal point for cybercriminals, and phishing attacks often target related information such as banking login credentials, PIN codes, BIN codes, credit card and account numbers, and more. Credential theft is considered the most coveted piece of information, and the shift to online services offers cybercriminals more ways to obtain them. Cybercriminals are focused on this information because it opens the door to many other data types and assets, by enabling overall identity proof and theft.
Executives in the finance industry are a particular target for cybercriminals. These attacks, referred to as whaling attacks, aim to gain access to data or sensitive information through higher-level managers. The financial industry is targeted by whaling attacks 300% more often than any other industry because a single successful attack can yield millions for cybercriminals.
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What encourages cybercriminals to target financial service providers?
Valuable data and financial assets: Financial institutions store vast amounts of sensitive personal and financial data, including credit card details, bank account information, and investment portfolios. This valuable data is a prime target for cybercriminals seeking to steal and monetize it through identity theft, ransomware, fraud, or extortion.The Price of Finance Phishing: Understanding the Consequences
- Stolen assets: Cybercriminals often use customers’ personal details to commit identity theft and access bank accounts. Just one successful attack could cost a company astronomical revenue losses. Identity fraud losses in the U.S. amounted to nearly $23 billion in 2023.
- Individuals are the low-hanging fruit: Cybercriminals often find it easier to attack C-level executives and key financial figures rather than well-secured financial institutions. For example, a phishing attack on Ubiquiti Networks led to a $46.7 million loss when the attacker impersonated the CEO and lawyer, tricking the accounting officer into wiring funds to accounts in multiple countries.
- The viral effect: Cybercriminals exploit users’ data to unlock other accounts via lateral movement and obtain further information, often using credential stuffing. By leveraging social engineering techniques, they infiltrate companies through their employees via social media. This often involves impersonating a company and using phishing techniques to gather sensitive information, which can significantly damage the company’s reputation.
Regulatory Compliance and Phishing
In addition to the direct risks associated with phishing, financial institutions, as briefly mentioned above, must adhere to an array of stringent regulations designed to protect consumer data. Non-compliance with these standards can lead to hefty fines or loss of business, as customers need assurance that their partners comply with regulatory requirements. This is especially critical in the finance sector, where the repercussions of a data breach extend beyond immediate financial loss to long-term reputational damage and regulatory penalties.
General Data Protection Regulation (GDPR): This European regulation mandates the protection and privacy of personal data for individuals within the EU and the European Economic Area. It emphasizes transparency, security, and accountability by data processors, giving individuals strong rights to control their personal information.
Gramm-Leach-Bliley Act (GLBA): Enacted in the United States, this law requires financial institutions to explain their information-sharing practices to their customers and to safeguard sensitive data. This act is pivotal in controlling how financial information is shared and how it is protected.
Payment Card Industry Data Security Standard (PCI DSS): This global standard mandates that any business that accepts credit card payments must secure its data environment. Its comprehensive standards for security management, policies, procedures, network architecture, and software design protect card data.
Digital Security Standard (DSS): Often integrated with PCI, DSS refers to policies and technologies that ensure the protection of digital data. The standard includes strong access control measures, audit logs, physical security, and user authentication.
Addressing Client-Side Security Risks in Financial Institutions: Financial institutions face the challenge of making customers aware of potential risks without causing undue alarm. It's crucial for customers to be vigilant and proactive in protecting their personal and financial information.
However, many financial firms underestimate threats on the client side: while banks sometimes effectively combat external threats targeting their servers and employees, they often neglect to safeguard against actions taken by users themselves. For instance, a keylogger script on a bank's website could capture users' personal data. This issue relates back to the need for banks to increase user awareness about such dangers, though they sometimes hesitate to do so to avoid alarming their customers.
By implementing comprehensive security measures and compliance protocols, financial institutions can safeguard against phishing attacks and mitigate the risks associated with these cyber threats.
As of February 2024, a study found that financial services (22%) were the most targeted sector by phishing. But there’s a lot we can do about that. Anti-phishing solutions require more than multi-factor authentication, as cybercriminals have become far more sophisticated, however protecting businesses and users against phishing attacks is within reach.
Financial businesses must adopt advanced anti-phishing technologies to safeguard customer data. By implementing comprehensive phishing takedown services, attacks can be prevented and damages minimized, reinforcing customer trust.
For information about how BrandShield can help protect your organization against phishing threats, sign up for a demo below.
