Ransomware continues to evolve, and in 2024 and 2025, it has emerged as one of the most serious cybersecurity threats facing organizations worldwide. With increasingly sophisticated techniques and highly organized threat actors, ransomware is no longer a sporadic IT issue—it is a critical risk that affects entire enterprises across financial, operational, and regulatory dimensions.
Stock brokerage firms face increasing pressure to adhere to stringent cybersecurity regulations. Chief Information Security Officers (CISOs) must design robust strategies to comply with frameworks such as SEC (Securities and Exchange Commission) rules, FINRA (Financial Industry Regulatory Authority) requirements, and GDPR (General Data Protection Regulation). Non-compliance can result in substantial fines, legal repercussions, and damage to a firm’s reputation, particularly if a breach is linked to inadequate security controls.
Financial institutions, including banks and stock brokerage firms, are prime targets of ransomware due to the critical nature of their operations and the high value of their data. 65% of financial services organizations were hit by ransomware in 2024 according to Sophos. The consequences of a successful ransomware attack can be devastating, both financially and reputationally.
The banking industry is increasingly reliant on third-party vendors for various services, from customer data management to software development. While these partnerships are critical for operational efficiency, they also introduce significant cybersecurity risk. To protect sensitive customer data and ensure regulatory compliance, banking security teams must adopt proactive measures to mitigate third-party risk.
Financial services companies are increasingly becoming prime targets for Advanced Persistent Threats (APTs)—highly sophisticated cyberattacks that often persist over an extended period. APTs focus on infiltrating systems, stealing sensitive financial data, and even manipulating stock trading mechanisms. These attacks are typically stealthy, designed to remain undetected while cybercriminals achieve their objectives, which could include long-term espionage or financial gain. Given the complexity and persistence of APTs, traditional cybersecurity measures are often inadequate. To defend against these threats, financial institutions must adopt a comprehensive and proactive cybersecurity approach.
In 2024, the U.S. Securities and Exchange Commission (SEC) introduced significant amendments to Regulation S-P, enhancing the rules around the privacy of consumer financial information. Compliance with these updated regulations is crucial for financial institutions to ensure the protection of sensitive customer data and to avoid hefty penalties. Here’s a comprehensive guide to understanding and complying with the SEC’s 2024 Regulation S-P amendments.
Financial institutions are prime targets for cybercriminals. In fact, they’re 300 times more likely to be a target than any other type of organization. And for years, finance (alongside insurance) held the top spot as the “most attacked industry,” according to IBM, until they were toppled by manufacturing in 2022.
Unsurprisingly, people really like money, and the main purpose of financial institutions is to hold, acquire, and protect financial assets. But pulling off a digital bank heist provides even more than a pile of money — it also provides cybercriminals access to valuable customer information they can sell on the black market for even more money.
Even worse, these institutions charged with protecting highly valuable customer data and assets often rely on legacy software riddled with vulnerabilities. Because these financial systems hold years’ worth of financial data, organizations don’t upgrade them often.
Having CodeHunter always running in the background can help financial institutions identify advanced threats, such as zero-day attacks. With deep visibility into your networks, you can see where your true vulnerabilities are and keep your customers’ data and assets safe.
Back in the day, a heavy-duty vault with a bullet-proof locking mechanism assembled by a world-renowned locksmith was enough to protect banks from Jesse James wannabes. Maybe a security guard stationed at the door, a little red button under the tellers’ counter triggering a silent alarm, cameras everywhere. But it’s 2022, and banks are facing escalating cyber threats that can sabotage business as usual in a matter of seconds.
At this point, nearly 80% of banking customers would prefer to manage their finances digitally from the comfort of their own couch than trudge to the nearest bank. While fancy vaults, security guards, and red-button alarms still have their place, cutting-edge cybersecurity solutions and groundbreaking technologies are stealing the show.
But despite massive investments in cybersecurity products and solutions, banks are still making basic mistakes — and losing millions of dollars to cybercriminals (and even more in reputation) on the reg.
Below are just a few of the cybersecurity mistakes we see banks making way too often.
You might think the first mistake on this list would live somewhere in the high-tech echelons, complete with jargon no mere mortal could wrap their head around. But no. First up is failing to create a culture of security that trains every employee in cybersecurity and zero-trust best practices.
Banks are 300 times more likely to face a cyberattack than any other type of institution. With the widespread nature and scale of today’s cyber threats, everyone in your bank needs to become a digital security guard. After all, anyone — from the CEO to the newest intern — could be the point of entry via a phishing email or malicious link.
How to fix it: Educate employees on cybersecurity best practices. Even small security measures — such as discouraging the reuse of passwords or sending sensitive information over vulnerable channels like email — go a long way to prevent a digital bank heist.
Similarly, consider customers a cybersecurity weak point. Just like employees, customers should receive some basic training around cybersecurity. Alongside mandatory multi-step authentication, facial recognition, encryption, and strong passwords, customers must be taught to play their part to keep their own data safe (and avoid clicking on that malicious link from their “bank manager”).
And if you haven’t upgraded your IT systems with basic security measures, your organization is at major risk of a cyberattack. Kristen Bolig, CEO of SecurityNerd, points out that many banks don’t offer customers the most basic security measures such as multi-step authentication on mobile apps. This is especially concerning since mobile apps are, as Bolig puts it, “somewhat easy points of entry for hackers.” She adds, “If a bank only requires the user to put in their password to log into the app, that’s not very difficult for hackers to figure out. Banks that have multi-step authentication and even allow for facial recognition are immediately more secure.”
How to fix it: Create customer-facing education around cybersecurity. You can do this through a newsletter, mobile app push notifications, or a digital security section in your FAQs. Encourage customers to scan their transactions regularly to check for suspicious activity, no matter how insignificant or harmless it may seem. And, if you haven’t already, enable security features such as multi-step authentication and regular password updates.
None of this education means anything if your employees and customers send information that’s not adequately encrypted.
Financial organizations regularly request sensitive information from customers (to verify identities, run credit checks, and grant loans, for example). Luckily, the Federal Financial Institutions Examination Council (FFIEC) creates, examines, and reports on standards and protocols. And the FTC’s Gramm-Leach-Bliley Act (GLBA) requires financial institutions to protect sensitive customer data and provide transparency around information sharing. To protect customers, regulations from the FFIEC and GLBA require financial institutions to encrypt:
Sensitive information (e.g. names, addresses, and Social Security numbers)
Transactional information (e.g. account numbers, loan balances, or purchase amounts)
Other personal information acquired to provide a financial service (e.g. credit scores or criminal records
Make sure you’re encrypting the information that needs to be encrypted: Bank-standard encryption is a 256-bit advanced encryption standard (AES). However, as Andrew Orr points out in an article for The Mac Observer, “You can use the strongest encryption algorithm in the world, but if you don’t use it correctly, it doesn’t matter if it’s 128[-bit] or 256[-bit].”
How to fix it: Conduct an audit around your encryption methods — but don’t stop there. Ensure your servers and machines are configured to process 256-bit AES to eliminate potential weak points.
While conducting a cybersecurity audit, whether you start with your encryption protocols or testing employees’ knowledge, use the FFIEC’s Cybersecurity Assessment Tool. To use it most effectively, make sure your practices align with basic cybersecurity requirements.
Perry Zheng, former software engineer and founder and CEO of real estate syndication platform Cash Flow Portal, says, “Most medium-sized banks fail to link their cybersecurity with cyber compliance.” If you’re following cybersecurity practices that don’t match your required compliance, “it can be difficult to respond to exams and audit requests.”
And if you do have to go through an audit, violations can be costly — especially if you don’t take corrective steps. You could incur fines from the NCUA, FRC, OCC, or FDIC. No matter which organization is coming after you, their fines can render your bank, well, bankrupt.
How to fix it: Leverage the information included in the FFIEC’s Cybersecurity Resource Guide for Financial Institutions to find both paid and free assessments and tools to evaluate your cybersecurity practices for compliance. Document your findings and make changes if you find weak points or violations. If a cyberattack does occur, you can use your records to show that you were following best practices for financial institutions — not just generic cybersecurity protocols.
Cybersecurity is not a budget line item to second guess.
The sheer volume of cyberattacks on banks might drive you to hire third-party security providers. The pricing model for security packages often depends on the number of systems covered. To keep costs affordable, many vendors — and even banks — suggest covering only “critical” systems.
But for financial institutions processing thousands (or millions) of records containing sensitive data, every system is critical. Cybersecurity corners should not be cut, especially for organizations as highly targeted as financial institutions.
How to fix it: Whether you’re working with an in-house security team or a third-party vendor (or both), don’t let cybercriminals catch you exposed — make sure you’re covered everywhere. Has your cybersecurity spending actually decreased recently? Leaving a “non-critical” system unmonitored to cut costs could be just the open (vault) door a hacker is looking for.
Even the most sophisticated cybersecurity system needs a basic foundation to stand on. Educate customers and employees about the importance of cybersecurity and the consequences of cyberattacks. Anyone connected to a bank should be vigilant about preventing cyberattacks; people can be your greatest weakness or your greatest strength.
And then, make sure your products or solutions, partners, and processes follow the same cybersecurity standard as your organization. Every product or solution you use, vendor you partner with, and protocol you follow should comply with FFIEC standards. Whether you run a small local credit union or an international institution, you should always be on the lookout for cutting-edge tech and groundbreaking cybersecurity solutions that will reduce risk and mitigate damage.
Prepare for the worst by running this cyberattack simulation exercise for banks.
If you need any more convincing to stay on your guard — read about the true cost of a data breach.
Have you already become the unfortunate victim of a cybercrime? Learn what bank CISOs should do after a data breach.
Cryptocurrency has risen from financial outlier to disruptor with trillions of dollars at stake. Speculation about its legitimacy and educated guesses on its longevity abound. At first, it sounded like a passing fad. But now, even banks are beginning to embrace it, despite its volatility. And it’s not just its volatile nature you should worry about these days. One of the biggest headaches — a crypto virus CISOs should keep a keen eye on — is cryptojacking.
You’ve probably already heard of the most famous cryptocurrencies: Bitcoin, Monero, Ethereum. However, the crypto market has grown exponentially since 2009, when it first hit the digital ether. There are now over 9,000 currencies to date. Banks are rushing to meet customer demand for digital shelving space to hold their crypto — but there’s still miles of legal tape to dispense before banks can plunge in.
Whatever gimmicky name has been slapped on it, all cryptocurrencies are virtual currencies secured by cryptography. In theory, this method of securing crypto makes these currencies impossible to counterfeit or double-spend. Think of it as a serial number system like the ones on dollar bills; only these markers have been etched into the currencies’ codes.
One glaring issue with cryptocurrencies — or huge benefit, depending on who you’re talking to — is that a central authority does not generally issue them. In other words, they aren’t managed by any official government, nor are they afforded the kind of tracking and other protections placed on federal currencies.
Instead, these currencies rely on blockchains, which are updated every time a transaction is made. These transactions are processed and validated by “miners,” who essentially verify “blocks” in the crypto ledger. Miners are often rewarded in cryptocurrency for their work.
Cryptojacking is the unauthorized use of other people’s devices and resources to mine for cryptocurrency. Motivated to save money and make a profit, cybercriminals steal resources like electricity and high-powered computing hardware from unsuspecting victims by secretly hijacking their devices.
Imagine there’s a thief who steals an electric car each night when the owner is fast asleep — and then makes a healthy profit ridesharing before plugging the car back into its supercharger without the owner ever knowing.
In a similar manner, cryptojacking isn’t designed to damage the software or device in any way; just use its resources. And, because the only evidence that shows up in a cryptojacked device is a slight decrease in performance, the stealthy malware is difficult to detect.
Cryptojacking is far too easy to carry out in today’s cyber minefield — embedding a malicious link in an email or creating an online ad that loads on a victim’s browser will usually do the trick. All wannabe cryptojackers need to do is access a device — or in some cases, many devices — capable of performing the work. Then, the cryptojacker can use the device(s) to mine blocks for the currency’s blockchain and reap the rewards for themselves.
Some banks have opted to accommodate cryptocurrency to remain relevant and competitive in this new financial cyberscape. However necessary, this accommodation comes with significant privacy risks.
Cybercriminals are known to hijack anything that helps reduce mining costs on their end — even enterprise-level cloud-based applications. If a bank uses a cloud-based service (which is difficult not to do these days), it’s susceptible to hijacking.
That bank’s customers would then be at risk for infection of malware. In one fell swoop, a hacker could access thousands of customers’ devices in a single day by infecting the bank’s login page with cryptojacking code.
Watch for telltale signs of cryptojacking malware in your network and devices, preferably using an automated alert system where applicable, and plan ahead for dealing with cryptojackers.
Know the warning signs. Watch for decreases in device performance, overheating, or increases in CPU and GPU usage.
Leverage tools to help you keep an eye on things. Use automated alerts to catch any unwanted code pushed to internal and external websites — and stay updated on the latest cryptojacking trends.
Take preventative measures.
Train and educate your staff on cybersecurity best practices, use anti-cryptomining extensions and ad blockers on your browsers, and disable JavaScript.
The digital threatscape’s reach is endless, forcing organizations to change and adapt constantly. New commodities like cryptocurrency, with roots in a decentralized economy, have quickly become a hacker’s cyberdream. Cybercriminals will exploit any weakness they find and use it for their own gain — and crypto is full of loopholes and opportunities. When it comes to cybercrime and digital self-defense, prevention and detection are critical to protecting your resources.
Prepare for any cyberattack by running this simulation exercise for banks.
Learn what you should do if your bank has suffered a data breach.
Think 2FA makes your bank safe? Think again.
Financial institutions are one of the most vulnerable targets for cyberattacks — and today’s Bonnies and Clydes are after more than just cash. Social security numbers, credit card accounts, and sensitive financial data are all up for grabs when a bank is breached, creating perfect conditions for costly and time-consuming cyber nightmares — for clients and institutions alike.
Having a playbook in place in the event of a breach can help your financial institution avoid costly fines, reputational damage, and future attacks. Below are four critical steps CISOs in financial institutions need to take after a data breach.
Under the Gramm-Leach-Bliley (GLB) Act, financial institutions are legally required to ensure that their client’s details are safe and confidential: They must have a written plan that outlines how they protect customer data; use service providers with security safeguards in place; train their employees on cyber security best practices; and work with law enforcement in the event of a breach.
Sounds simple enough, but each state has its own set of rules and regulations for working with local and federal law enforcement when sensitive data is compromised. CISOs need to make sure they understand the scope of their responsibilities — as well as their power of authority — and be fluent in local legal requirements when devising their company’s own plan.
It might seem easier to quietly pay off cybercriminals rather than deal with an embarrassing public fallout and sky-high fines. While that may be true, it is a spectacularly bad idea. The best practice is to follow protocol and alert the authorities, immediately.
Not convinced? Let’s entertain the idea of an institution responding to ransomware by quietly slipping Bitcoins to cybercriminals as payment. Bypassing lengthy investigations and the disruption of daily activities — not to mention neatly sidestepping loss of trust from customers and clients if the attack is exposed — may sound appealing, but the fallout could be worse than the breach itself. There’s no guarantee that the attackers would hold true to their word and relinquish control, or that they wouldn’t abuse the data to which they’d gained access. There is also zero guarantee that the group wouldn’t make their actions known — either by simply announcing it or by broadcasting the very data they stole. Just ask Joe Sullivan, former CISO at Uber, who faced charges from the FBI after taking matters into his own hands and paying a ransom.
The fear of shouldering the blame for a breach is understandable, especially when 23% of companies report executive firings following cyberattacks. Banks are burdened with safeguarding their customers’ finances and their personal identifiable information, making a breach a particularly nasty pill to swallow. However, a careful and methodical response can help to protect and retrieve clients’ information — and help institutions save face.
In April of 2021, the Bank of Oak Ridge in North Carolina reported a data breach affecting an undisclosed number of accounts. Social Security numbers, bank account numbers, and driver’s license numbers were exposed.
In response, the bank closed all five of its branches for two days while the FBI assisted with the investigation. When they determined who was likely affected, the bank alerted its customers and offered free identity protection. By reporting the incident quickly, following protocol, and communicating with transparency, the bank dodged legal fines — and remained in business.
Never heard of this incident? Exactly.
Bad things happen to even the best IT teams, but there’s no excuse for being hacked or attacked in the same way twice. Below are high-level practices all organizations should adopt in the aftermath of — and well before — an attack.
Prioritize security from the top down. For security measures to be effective, executive level buy-in is a must. It’s on CISOs and other C-suite execs to make cybersecurity and awareness a core part of organizational culture.
Know your risk profile. Clearly identifying your industry’s attack vectors, gaming out different cyberattack scenarios, and being aligned on your organization’s most valuable assets — and how to protect them — is crucial to creating and executing effective cyber security initiatives.
Take threats seriously. Prepare for the worst. Seriously. (Read more: Why Executives Should Play Cyber War Games)
Enforce your policies. Security policies should be baked into day-to-day operations — and outlined in terms that all employees (not just tech geeks) can understand. Document everything, automate whenever possible, and keep things simple.
Back it up. Data loss can be a death blow to an organization — many never fully recover. Keep a copy of critical data in a secure offsite location and regularly test your backups.
Keep up with security patches. Sounds like a no-brainer, but regularly applying legitimate security patches to software and hardware systems is often overlooked. Are there examples where a security patch created a vulnerability? A couple. Are there examples where the lack of a patch created a huge problem? A couple thousand.
If a bank wants to mitigate the damages from a cyberattack and maintain its customers’ trust, the CISO should get to know the applicable local and federal laws, create a plan, and communicate any data breaches without fail. An attack is all but inevitable, but how an institution reacts determines whether it will recover and move on, or keep on taking hits even after the ransom is paid.
