Bank Robbers Working Overtime: Financial Industry Most Hacked
By: Jim Stickley and Tina Davis
July 24, 2020
It’s easy to see why financial institutions are hacked more than any other business – it’s where the money is. The “bank robbers” of the 21st century have been unusually busy since the ongoing coronavirus pandemic. The explosion of employees working remotely and the vulnerabilities they create become massive opportunities for cyber-crooks. Yes, hackers are usually the first to capitalize on epic events, whether good or bad. But at the moment, the months-long pandemic continues to provide targets ripe for hacking and none are more ready for picking than the financial industry.
The financial sector numbers don’t lie. According to data from a VMware Carbon Black study, there was a 238% spike in cyberattacks against financial institutions from February to April of this year. Not coincidentally, these two months also saw the biggest surge of coronavirus cases in the U.S. to date. Smaller hacking spikes during this time can be tracked to key days in the news cycle. On March 1st of this year when many states declared coronavirus a public health emergency, there was a notable rise in attacks.
A hacker’s dedication to be a step ahead of cybersecurity has resulted in traditional security efforts being less effective. In other words, what worked yesterday to fend-off bad actors doesn’t mean it will still work today. There’s also been a strategy shift for some using coronavirus themes to target individual customers: It isn’t as profitable as hacking the financial institution itself. The study finds other meaningful statistics from those surveyed financial institutions and new ways to combat today’s bank robbers are offered.
Staggering Stats
- 80% of financial institutions reported an increase in cyberattacks over the past 12 months, a 13% increase over 2019.
- 33% of financial institutions said they’ve encountered “island hopping.” This is an attack where supply chains and partners are used to target the primary financial goal.
- 82% of financial institutions said cybercriminals have become more sophisticated, using highly targeted social engineering attacks and advanced TTPs (tactics, techniques, and procedures) to hide malicious activity. Once inside a network, hackers can transfer funds and steal sensitive data.
- 64% of financial institutions reported increased attempts of wire fraud transfer, a 17% increase over 2019.
- Ransomware attacks against the financial sector rose 9 times from the beginning of February to the end of April 2020.
Cybersecurity Strategy for Financial Institutions
Financial institutions are advised to conduct regular cyber threat hunting exercises to find any persistent attackers that may already be inside. A shift to intrinsic security, one where security is built in and not added on, is needed.
Security teams should integrate security controls and modernize their endpoint security to mitigate a bank heist.
Increased vigilance and visibility into enterprise-wide endpoint activity are more important than ever. Keeping a focus on finance, there’s no doubt attackers will continue to target vulnerable populations and organizations.