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AI-powered cyber threats are increasing in their volume and ferocity – and they’re targeting financial institutions more than ever before. Given these general trends, it’s important that financial institutions – particularly SMBs – upgrade their cybersecurity posture with AI-powered defenses.
Discover how NetraScale's AI-powered cybersecurity protects financial institutions from emerging threats, ensures compliance, and boosts resilience.
The financial services sector has long been a prime target for cybercriminals. High-profile breaches like those against Fidelity National Financial and Bank of America demonstrate the sector’s ongoing allure to malicious actors. While large institutions have the resources to heavily invest in cybersecurity, small- to medium-sized financial institutions are experiencing a steeper uphill battle protecting themselves from the slings and arrows of cybercrime.
With constrained budgets, limited personnel, and an ever-expanding laundry list of regulatory demands, such institutions present a tempting target to a determined – and growing – number of bad actors. And the attacks show no sign of letting up anytime soon: A 2024 joint study conducted by the FS-ISAC and Akamai Technologies found that a staggering 35% of all DDoS attacks in 2023 were aimed at the financial services industry, making it the most-attacked vertical in the world.
Nor does it help financial SMBs that the sophistication of cyber-attacks is also growing exponentially – particularly with the advent of Generative AI. Generative AI adds its own confounding layers of danger and risk, enabling cybercriminals to create hyper-realistic phishing emails, synthetic voices, and even deep-fake videos that threaten the business reputation of ill-protected financial service institutions worldwide.
Such tools are built to bypass traditional stalwart security measures including rule-based monitoring systems, traditional firewalls, and static identity verification processes like password authentication or two-factor authentication. To stay ahead of this perfect storm of emerging threats, SMB financial institutions must urgently rethink and upgrade their cybersecurity tools – or risk becoming targets themselves.
Unlike earlier cyber threats, generative AI enables attackers to mimic user behavior, produce convincing counterfeit communications, and even create synthetic identities that fool behavioral analysis tools. Imagine, for instance, a fraudster generating an exact replica of a bank executive’s voice to authorize transactions or using deepfake video technology to impersonate a client during a virtual meeting.
What once would’ve been the stuff of Neuromancer-level science fiction is fast becoming the everyday threat landscape: In a 2020 incident, cybercriminals used AI “deepvoice” to clone the voice of a company director, convincing a bank manager in the United Arab Emirates to transfer $35 million for a fake business acquisition. Supported by a meticulous flurry of fake emails and documents, this attack proved how generative AI can brush past trust-based systems, exposing vulnerabilities in even the most time-tested (but standard) security measures.
The bottom line is this: Traditional manual- and rule-based cybersecurity measures are ill-equipped to counter Generative AI-created threats. Without advanced AI-driven solutions, financial institutions risk losing not only their most sensitive data – but also their reputation and customer trust – for good.
SMB cybersecurity challenges in the financial sector are compounded by limited budgets, making it difficult to invest in advanced AI-driven cybersecurity tools or hire specialized staff. At the same time, these institutions are increasingly targeted by cybercriminals exploiting weak defenses with sophisticated attacks like ransomware, phishing, and social engineering schemes.
Regulatory compliance, such as adherence to the FCA’s Operational Resilience Policy, the PRA’s internal controls guidelines, or GDPR’s data protection mandates, adds layer after layer of red-tape-ridden complexity. Not only that, but an ongoing drought in cybersecurity talent (with an estimated 2.8 million jobs unfilled, per BCG) makes it harder for smaller and mid-sized banks and financial service organizations to attract and retain skilled cybersec professionals.
But despite these very real headwinds, SMBs can still make use of advanced cybersecurity solutions that allow them to level the playing field… provided they can team up with the right AI-powered cybersecurity vendor.
AI-driven cybersecurity tools provide financial institutions with defensive capabilities that go well beyond traditional protection layers. Outfitted with the proper technology, a financial institution can now identify, track, and quantify its risk profile in a constant, moment-by-moment stream. Simultaneously, newly developed AI cyber tools provide that institution with actionable insights that can allow it to address real-time risks and vulnerabilities before they can ever escalate.
By partnering with the right technology vendor, financial institutions can transform uncertainty into actionable intelligence. All it takes is finding a cutting-edge, AI-powered ransomware threat predictor tool to implement correctly.
The FCA and PRA emphasize operational resilience as a cornerstone of financial stability. For small- or mid-sized financial firms, achieving this resilience requires cybersecurity solutions that meet the highest standards, such as those outlined in the NIST Cybersecurity Framework. This framework prioritizes five core functions: Identify, Protect, Detect, Respond, and Recover.
AI-driven cybersecurity solutions align seamlessly with these principles:
By adopting AI-driven models, SMBs can about-face their cybersecurity posture from a reactive process, and into a proactive strategy. The net effect? They’ll be able to reduce financial losses while safeguarding their reputation.
Partnering with an AI cybersecurity provider offers SMB financial institutions several distinct advantages:
These are all things to take into careful consideration when choosing the right AI-driven cybersecurity partner for your financial institution.
In today’s rapidly evolving digital landscape, AI-powered cybersecurity solutions are crucial for SMB financial firms. While it’s true that Generative AI threats are amplifying the capabilities of attackers, it’s equally true that these same technologies can also strengthen defenses, enhance operational resilience, and help institutions maintain compliance with stringent regulatory standards.
By investing in cutting-edge AI cybersecurity solutions, firms can protect their sensitive data, bridge the cybersecurity gap with larger competitors, and ensure business continuity. Make no mistake: The road to resilience can – and will – be complex. But given the right tools and technology vendors, the financial fort of tomorrow is eminently defensible.
Ready to protect your financial firm from generative AI threats and more? Contact NetraScale today to learn how our AI-powered cybersecurity solutions can help safeguard your data and ensure compliance with constantly evolving standards.
You can also email customercare@netrascale.com for more information about RiskAct.
