Cyber security in 2023 – key trends and future considerations for the financial services sector
2023 presented a continued surge in cyber attacks, ranging from sophisticated ransomware campaigns to supply chain compromises. These threats pose significant risks to financial institutions, leading to potential data breaches, financial losses, and reputational damage.
How can firms protect against cyber security threats?
In order to safeguard their assets and maintain investor confidence, firms must prioritize cyber security and implement robust measures to protect against emerging threats.
Emerging cyber security threats in 2023
- the rise of AI – simplifying the creation of attacks has brought an entirely new strategy to the forefront, ranging from software development of malicious payloads to the creation of fake invoices
- ransomware – ransomware attacks persist and continue to be a major threat, targeting various industries, including healthcare, education, and government
- supply chain attacks – these attacks, targeting software supply chains, such as the attack on SolarWinds in 2020, have escalated and continue to pose significant risks
- geopolitical tensions have fueled cyber attacks – we have seen an increase in cyber attacks between nations, often targeting critical infrastructure
- deepfake technology abused – deepfakes, which use artificial intelligence to create realistic fake videos or audio, were used to spread misinformation and conduct scams
- cryptocurrency crime rose – incidents of theft and fraud involving cryptocurrencies haven increased.
How has cyber security affected the financial services industry?
The effect on the financial services industry:
- the end of the ‘work-from-home’ era and RTO (Return to Office) – as workers returned, they brought with them poor cyber hygiene due to a relaxing of policies and with that, new cyber security challenges
- scrutiny on cyber security practices – there is now heightened regulatory attention on cyber security practices within the financial sector
- supply chain due diligence – there is now an increased emphasis on enhanced due diligence of third-party vendors, to ensure their cyber security measures are up-to-date and in line with industry best practice
- data privacy concerns – growing concerns over data privacy, particularly regarding the collection and use of personal data, have led to stricter regulations and enforcement of GDPR and CPRA (CCPA)
- increased attacks on financial institutions – cyber attacks designed to steal sensitive financial data or disrupt operations increased significantly in 2023.
How Waystone Compliance Solutions can help
Waystone Compliance Solutions is a leading provider of cyber security consulting and compliance services to the financial services industry. If you would like to find out more about how we can help you to assess your current cyber security measures, please reach out to your usual Waystone representative or contact us below.