Cyber Threats in Finance: Your Strategic Guide for 2025

Key Cyber Threats Targeting Financial Institutions in 2025

AI-Powered Phishing and Social Engineering Attacks

Phishing attacks appear to be among the most frequently performed cyber attacks, and with the application of AI, these attacks are exceedingly effective. Therefore, FinTech Futures predicts that by 2025, data stolen by phishing scams using artificial intelligence will have risen by 20%. AI can study a target’s profile, and then write emails and messages that imitate typical communication channels as real as possible. For instance, a phishing email could contain not only the correct wording and format of a bank’s emails but also a list of the last several transactions.

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Other forms of social engineering include the use of fake cloning, fake accounts, or deepfakes in the audio domain. These are no longer unique occasional practices but common methodological approaches addressed to both the consumers and the employees.

Ransomware Campaigns Targeting Financial Data

In 2023, ransomware attacks increased by more than 93% all over the world and are expected to rise in 2025. The impact of the attack could be computation in the tens of millions for a single institution – in location exclusions, both ransom and lost operations, as well as reputational costs.” This is because ransomware operators have usually found time to attack backups and since there are no credible systems backups, the only solution is to pay.

It took a mid-sized bank in Europe $15 million after being attacked and having their financial records encrypted in 2024. While the bank said it was able to restore operations from backups, the event caused a huge loss of customers and regulatory attention.

Insider Threats and Third-Party Vulnerabilities

The Verizon 2024 Data Breach Investigations Report has revealed that malicious and non-malicious insider attacks contributed to approximately 33.7% of data breaches. Owners of privileged accounts can use them maliciously or become victims of phishing allowing attackers into the systems.

This is so because third-party risks are also a major factor of concern. Banks have long depended on vendors for services such as payment processing, computer services, and many others. If these vendors have not put in place adequate security systems then they become such weak links as evidenced by the supply chain attack on a U.S.-based bank in the year 2023 that saw the exposure of 1.3 million consumer records.

Why Financial Institutions Are Prime Targets for Malicious Actors?

Financial institutions face unique vulnerabilities that make them particularly attractive to cybercriminals. Here’s what makes them prime targets:

1. High-Value Financial Transactions and Sensitive Data– Hackers operate like vultures and invariably, the biggest bucks are found in the banking system. Everything from transaction records to customers’ Social Security Numbers resides in the database of financial institutions, making it a target for attackers. Leaked data can be sold on the internet black market or used for identity fraud.
2. Increasing Digitization and Reliance on Online Banking– Covid-19 has forced the uptake of digital banking and this is not reversible. Currently, more than 85% of Americans engage in online or mobile banking services. Despite this digitization enhancing the organization’s convenience, it exposes the organization to cyber risks. Targets have in effect become more exposed with a new and wider avenue of vulnerability to exploit.
3. Lack of Cybersecurity Awareness Among Customers– It is a general observation that customers are the weakest link when dealing with cybersecurity issues. To date, many users continue to compromise their accounts to phishing scams or do not use secure passwords. A survey conducted by the National Cybersecurity Alliance in 2024 revealed that as many as 67% of banking customers used the same passwords across multiple accounts, something that Suda said exposed them to credential-stuffing attacks.

Case Studies of Recent Financial Sector Attacks

The Indian Bank Heist (2024)

Earlier in 2024, a top Indian bank fell prey to a ransomware group where the group encrypted crucial financial files. For that invasion, the attackers wanted 10 million US dollars in cryptocurrency. The bank was able to bring all its operations back up from backups that had been kept but it suffered great inconvenience whereby it had to delay performing some of its operations that involved customers and also saw its stocks drop by 14%.

North American Crypto Platform Breach (2023)

A North America-based trading platform for cryptocurrencies lost $32 million from its multi-signature wallet weakness. This group targeted a third-party API for the payment system in which it was able to bypass the authentication process and steal the funds in less than two days.

Proactive Cybersecurity Strategies for Financial Institutions

As threats evolve, financial institutions must adopt comprehensive security measures to protect their assets and customers. Here are key strategies to consider:

1. Implement AI-Driven Threat Detection and Response– Through the use of AI, one can be able to detect outliers on a real-time basis and know when a threat is looming. These systems use machine learning to update their knowledge regarding new attacks, and in this way offer an active protection system. For instance, AI can understand login behaviors; once there are unauthorized attempts from unknown apparatus or areas.
2. Strengthen Endpoint Security and Multi-Factor Authentication (MFA)– Employees’ laptops and other portable devices, among other endpoints, are vulnerable targets to attackers. Antivirus tools for endpoints allow for the prevention of unauthorized access to the network, whereas MFA is an introduction of more than one factor that is needed to grant access.
3. Regular Security Training for Employees and Customers– It is people who remain the first and the most effective protection line. Continuing training sessions like workshops and simulations can assist the employees in identifying and realizing that they are being phished while customer awareness and education programs can minimize the vulnerabilities to scams.

The Role of Regulatory Compliance in Mitigating Cyber Risks

Regulations play a crucial role in maintaining cybersecurity standards. In 2025, financial institutions must comply with frameworks such as:

• Payment Card Industry Data Security Standard (PCI DSS): Ensures secure processing of card transactions.
• General Data Protection Regulation (GDPR): Mandates stringent data protection measures.
• Cybersecurity Maturity Model Certification (CMMC): A U.S. standard emphasizing supply chain security.

Compliance minimizes risks and reassures customers and stakeholders about the institution’s commitment to security.

How Lepide Can Help

Lepide offers a robust Data Security solution tailored to address the unique data security challenges faced by the Financial Services sector. By consolidating data and identity security into a unified platform, Lepide enables comprehensive monitoring and proactive response to potential threats, ensuring sensitive financial information remains secure.

Lepide empowers financial institutions to achieve operational excellence and regulatory compliance through simplified data security identity. Our intuitive platform streamlines security operations, reducing complexity and resource requirements. With Lepide, organizations benefit from enhanced visibility, actionable insights, and accelerated incident response capabilities. By safeguarding sensitive data and maintaining compliance with regulatory frameworks, financial institutions can bolster trust, mitigate reputational risks, and focus on innovation and growth in a competitive marketplace.