The rapid digital transformation of the finance industry presents unprecedented cyber security threats. With rising digital correspondence internally and between financial firms and customers, email security is a priority now more than ever. Phishing attacks and other social engineering cyber attacks should be monitored, mitigated, and contained to preserve critical operational information. Without appropriate prevention and containment measures, cybercriminals are in a better position to make away with thousands or millions of consumer dollars. What email security threats are proliferating financial firms, and how can they be prevented?
Client-facing email cyberattacks
Client-facing email cyberattacks make up a great portion of successful cyber threats. Mitigating and containing these security threats is challenging since they are generally conducted out of company servers. Allowing customers to click on a malicious link is easier than targeting the internal structure of legacy and cloud-based systems financial firms use.
Some of these attacks could be as easy as using a domain convincing enough to make customers click on malicious links. Cybercriminals can create an email prompting users to follow the actions on that correspondence. The actions could be made to sound urgent or critical for financial account safety.
For example, a social engineering attack could prompt customers to change their accounts password due to a purported breach. Once the target clicks on a link provided in that email, they are directed to a screen with identical elements to the finance firm’s login portal. Unknowingly, financial firm customers could give away their login information to cybercriminals.
Internal company attacks
Financial companies also face enterprise email security threats from internal vulnerabilities, which are employees. Untrained employees are at risk of being social engineering attack victims through duping emails. This type of cybersecurity threat is called Business Email Compromise and has a variety of vulnerabilities. In larger organizations with different departments, employees could receive convincing emails with specific instructions.
The emails seem to originate from colleagues with authority, such as executives or managers. Attackers can target financial companies by sending instructions to take actions such as wiring funds for fraudulent equipment purchases or settling bogus invoices. In the fast-paced world of finance firms, billing and accounting teams could easily carry out those instructions without verification.
Cybercriminals first conduct reconnaissance on potential financial sector services that could be targeted and understand internal procedures. By the time they carry out an attack, they’re fully aware of company protocols and jargon used. Internal company attacks are also conducted using a domain identical to the firm’s name.
Social engineering vulnerabilities
Social engineering uses a different approach than other cyberattacks because it relies on human error and thinking patterns. Instead of focusing on technology and network architecture, social engineering “hacks people,” so to speak. Therefore, the main vulnerability of email cyberattacks is employees, customers, and suppliers. Third-parties like suppliers are also more susceptible to being victims of email fraud.
Social engineering criminals can order equipment from company suppliers using the company’s credit. Alternatively, employees could unwittingly grant fraudsters access to confidential information upon a fraudulent email request.
Fraudsters can impersonate colleagues, mostly supervisory figures making it harder for subordinates to question the request. Although the main vulnerability of social engineering is employees and customers, there are tech improvements that IT security can make to prevent or reduce the effects of this cybersecurity threat.
Malware email cyberattack mules
Email cybersecurity threats and social engineering tactics extend to embedding malware on emails. This type of attack is very simple because it can originate from internal or external sources. External sources could be impersonated partner or supplier emails with malicious links or attachments.
Attackers can impersonate a known supplier and send through something as enticing as the latest catalog or product offers. Once the target clicks on that attachment or link, criminals could penetrate the system with malware.
Alternatively, an email address seeming internal correspondence can be convincing enough to click on a malicious link or attachment. Different types of malware can be spread using this trick detrimental to financial firms.
Irreparable damage caused by email fraud
Phishing, malware mules, and other social engineering attacks have irreparable damage to finance firms. The entire modern financial system is built on trust and reputation. A finance firm without a good reputation might lose existing clients and fail to attract new customers.
The news of a successful breach spread very quickly, and when customers feel unsafe, they are bound to leave that service. Even after the attack has been contained and measures have been put in place to prevent future social engineering attacks, customers aren’t likely to return.
The results of a successful cyberattack could run into millions, especially if ransomware was infiltrated using email fraud. This highlights the need for financial firms to take actionable measures to prevent email fraud.
Financial firms at risk
The financial industry has several subsectors, including securities trading, hedge funds, foreign exchange, banks, lending service providers, etc. All of these firms are at risk due to the digital transformations most have adopted.
The use of apps and website portals has increased email communication between customers and customer service personnel. Therefore, none of these firms are immune to social engineering attacks. However, banks have adopted strict cybersecurity policies that prevent social engineering to a great extent.
Other subsectors still need to strengthen their security, especially securities trading and hedge funds. These financial firms directly deal with consumer funds, and cybersecurity breach will forever tarnish their image.
Mitigating email cybersecurity threats
Client-facing social engineering attacks can be prevented by implementing advanced login procedures such as multi-factor authentication. In that case, even if cybercriminals do get hold of customer login details, they won’t be able to log in on the financial firm’s portal.
Multi-factor authentication could also prevent internal attacks by fraudsters trying to gain access to privileged information. Most importantly, training both customers and employees on social engineering can help curb the effects of this kind of attack.
By providing training material in the form of newsletters to customers and comprehensive lessons to employees, financial firms can mitigate the risk of email cyberattacks.
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