The financial sector is under siege from increasingly sophisticated cyber threats. Soffid IAM takes a deep dive into the most significant attacks from 2024 and how financial institutions can bolster their defenses.

1. Ransomware: A Growing Financial Burden

One of the most crippling ransomware attacks this year targeted a leading bank, forcing it to shut down services for several days. The hackers encrypted critical data and demanded millions in cryptocurrency for its release. The bank faced regulatory scrutiny due to the breach, highlighting the urgent need for not only fast response systems but also Privileged Access Management (PAM) to limit the reach of such attacks. The financial burden extended far beyond the ransom itself—lost business, reputational damage, and the cost of restoring systems magnified the impact (TechRadar).

2. Supply Chain Attacks: A New Weakness

A significant attack in 2024 exploited a major software vendor serving multiple banks. Hackers infiltrated the vendor’s systems, gaining access to its clients’ financial systems through trusted connections. This breach exposed sensitive customer information, putting numerous banks at risk and leading to a multi-bank regulatory investigation. The event underscored the importance of vendor risk management and the implementation of continuous monitoring tools to identify potential threats before they escalate (TechRadar).

3. DDoS Attacks: Disruption as a Strategy

The surge in Distributed Denial of Service (DDoS) attacks saw a 154% rise in the financial sector. A recent DDoS incident crippled a large financial institution, with attackers generating enormous amounts of traffic to disrupt online banking services. What made this attack more alarming was its coordination with a concurrent data theft, using the DDoS as a smokescreen. This dual-pronged approach has become more frequent, illustrating the need for advanced traffic analysis and automated incident response mechanisms to mitigate these multifaceted attacks (Akamai).

4. Credential Theft: Exploiting Insider Vulnerabilities

In another alarming trend, phishing and social engineering attacks targeting bank employees increased dramatically. In one breach, attackers impersonated a trusted executive, tricking an employee into handing over credentials, which were then used to access sensitive data and execute unauthorized financial transactions. The breach highlights the growing risk of insider threats and the need for Multifactor Authentication (MFA), combined with regular employee awareness programs to ensure that even sophisticated phishing attempts are detected and blocked (TechRadar).

How Soffid IAM Protects Financial Institutions

Soffid IAM provides robust tools to mitigate these types of attacks:

• Privileged Access Management (PAM): Reduces exposure to ransomware by limiting unauthorized access to critical systems.
• Multifactor Authentication (MFA): Helps prevent credential theft and unauthorized access.
• Identity Lifecycle Management: Ensures continuous monitoring and adjustment of access rights to reduce insider threat risks.

Soffid IAM empowers financial institutions to not only meet regulatory compliance but also defend against evolving cyber threats.