AI/ML-Powered Cybersecurity: Securing the Future of Banking and Finance

January 25, 2025

As consumers worldwide continue to demand a seamless digital financial services experience, the need to protect customer data through secure and reliable online banking platforms has amplified. In the Global Financial Stability Report published by IMF back in April 2024, it is highlighted that cyber-attacks in the BFSI industry have doubled in previous years since the COVID-19 pandemic. From credit card fraud to account hacking, online banking scams, and sensitive data breaches, these trends remain similar all across the world.

Deep Dive into the Rising Cyber-Threats in Banking and Finance

The global banking and financial services industry is subject to multiple kinds of cyber-threats including but not limited to:

Phishing Attacks

These attacks involve unethical practices that induce users to click on malicious links or download virus-infested documents and/or files. Due to the sensitive nature of data handled by the BFSI sector alongside the monetary value it holds, the sector remains a primary target for phishing attacks worldwide. According to a report by Securelist, financial phishing accounted for 27.32% of all phishing attacks on corporate users and 30.68% on home users highlighting significant focus on financial institutions as prime phishing targets.

Ransomware

Ransomware is a type of malpractice where hackers encrypt sensitive data and demand ransom for its decryption. In 2024, financial organizations paid an average of $1.6 million to ransomware attackers, a massive 487% increase from $272,655 the previous year. In the past few years, the ransomware costs for BFSI players have been increasing extensively due to high ransom demands and recovery expenses. Such trends underscore a dire need for robust cybersecurity measures in the industry to establish user trust, mitigate risks, and save costs.

Identity Theft

Identity theft attacks in the Banking, Financial Services, and Insurance industry involve the act of stealing and/or misusing critical personal and/or financial information for fraudulent purposes. These attacks range from document forgery—where fraudsters manipulate information in documents to bypass or complicate KYC processes—to synthetic identity fraud, in which fake identities are created by combining real information with fictitious details. In 2023, the banking sector was severely impacted by identity theft fraud, with approximately 94% of banking organizations affected and average losses exceeding USD 310,000.

DDoS attacks

DDoS attack in BFSI, also known as Distributed Denial of Service attack in BFSI, is a type of cyberattack in which multiple systems often part of a massive botnet target banking systems, servers, networks, and online services, making it impossible for real users to access them. According to Akamai’s report, BFSI industry remains the most targeted industry accounting for more than 34% of the total DDoS attacks. There are multiple techniques through which DDoS attacks in the BFSI sector are carried out. From sending massive traffic to exhaust the overall bandwidth, to targeting specific applications like HTTPS or DNS, and exploiting vulnerabilities in protocol cyberattackers continue to disrupt financial services, affecting customer trends, and increasing financial loses.

PureSoftware Cybersecurity: Proactively Safeguarding the BFSI Sector Against Evolving Cyber-Threats

As the BFSI sector faces a severe volumes of cyber attacks worldwide, PureSoftware’s cybersecurity solutions are designed to help financial institutions secure their digital infrastructure and customer data. With a comprehensive approach that includes Data Security, Application Security, Cloud Security, Mobile Security, and Network Security, PureSoftware ensures protection across all digital fronts. Our services—such as Identity Access Management, Governance Risk and Compliance, and Cybersecurity Architecture Review—offer proactive defenses that can strengthen your systems against future attacks. Consult our experts to explore tailored strategies that will empower your organization to stay resilient in an ever-evolving digital landscape.


Author:
Prasoon Agrawal

Senior Vice President and Business Head Americas

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