In 2024, the financial sector has emerged as a primary target for cybercriminals, with a significant uptick in data breaches putting institutions at risk as they look toward 2025. According to a report by SailPoint, approximately 65% of financial organizations worldwide reported experiencing a ransomware attack within the year, marking a notable increase from 64% in 2023 and a stark rise from just 34% in 2021. With 46% of financial companies indicating they had experienced a data breach within the last two years, the urgency for robust cybersecurity measures has never been greater.
The landscape of cyber threats within the financial sector is compounded by vulnerabilities linked to third-party identities. A staggering 80% of organizations expressed concerns regarding the risks associated with overprovisioning access for external individuals, which raises the risk of sophisticated cyberattacks. As financial institutions undergo mergers and acquisitions, the influx of new identities further complicates the security framework, with 77% of respondents acknowledging the increased risks tied to inadequate visibility of these newly integrated identities. Such circumstances can lead to over-provisioning, access delays, and various identity management challenges during crucial offboarding processes.
The current generation of identity security solutions is not adequately equipped to manage the risks posed by non-employees, such as contractors and partners, with less than half of organizations actively seeking to address this gap. Wendy Wu, CMO of SailPoint, emphasizes that as financial services evolve, so does their susceptibility to cyber threats. The complexities introduced by mergers, along with an increased number of machine identities requiring protection and the proliferation of unmanaged sensitive data, have created new vulnerabilities that could lead to escalating data breaches if not properly governed.
In addition to the threats presented by cybersecurity, financial service organizations are grappling with compliance challenges. A staggering 93% of these organizations reported difficulties in maintaining compliance with regulatory requirements. Primary pain points include insufficient resources, cumbersome manual processes, and time-intensive commitments. Over the past two years, 64% of financial institutions faced identity-related audit citations, underscoring the pressing need for streamlined security solutions that mitigate both cyber and compliance risks.
Analysis of the report reveals that many existing identity security tools demand excessive manual operations—53% of respondents noted this issue—while 49% cited a lack of automation as a critical concern. These inefficiencies not only lead to slow and error-prone processes but also increase compliance vulnerabilities. Significant risks, including overprovisioning, lack of separation of duties, and excessive third-party access, remain obscured by the absence of adequate analytics within these tools, placing undue strain on already overburdened identity security teams.
The financial sector remains a prime target for cyberattacks, largely due to its extensive repositories of personal data. With the average cost of a data breach exceeding $6 million, coupled with escalating regulatory fines, there is a compelling argument for adopting modernized, automated identity security measures. For organizations to navigate this precarious landscape effectively, it is essential that they consolidate identity data within a singular, centralized platform, enhancing visibility and management of access privileges. This unified approach not only improves situational awareness regarding potential threats but also informs actionable responses.
This report draws on a comprehensive global survey that engaged over 300 leaders in Identity and Access Management (IAM), IT security, and audit and compliance, illuminating the current state of identity security in the financial services industry. As organizations face an evolving threat landscape that requires both vigilance and strategic investment, the insights derived from this analysis underscore the urgent need for enhanced identity security protocols in the financial sector.
From a cybersecurity framework perspective, it is critical to consider the MITRE ATT&CK Matrix, which outlines tactics such as initial access, privilege escalation, and persistence that may be employed by adversaries targeting the financial industry. Understanding these techniques can inform proactive measures needed to safeguard against future breaches. As financial institutions navigate these complex challenges, integrating robust cybersecurity frameworks and identity management solutions will be paramount in protecting sensitive data and maintaining regulatory compliance.
