The financial sector is scrambling to keep up with the heightened risks posed by cyber threats through increasing investment in fraud prevention and strengthening third-party risk management, according to a new report by the Financial Services Information Sharing and Analysis Center.
FS-ISAC’s annual survey on cyber threats and trends, Navigating Cyber, found that financial firms across the globe are facing a variety of challenges, from surging fraud and scams enabled by generative AI to the increasing sophistication of distributed denial of service attacks and ransomware. Among other things, many firms said they are planning to invest in fraud prevention tools and implement strategies such as “smart friction,” which increases security measures in the user experience to slow payment authorizations. Firms also say they’re planning to leverage GenAI in their cyber defense and focus on effective third-party risk management.
“The ever-changing cyber threat landscape means each year is unprecedented in nature, with threat actors leveraging every available tool to disrupt operations and undermine trust in the financial sector,” said Teresa Walsh, FS-ISAC’s chief intelligence officer. “To ensure operational resilience, firms must adopt a forward-looking cyber posture that incorporates proactive threat modeling, agile defense capabilities, and cross-border collaboration.”
