Thales has released its 2024 Data Threat Report for Financial Services, revealing a notable decline in data breaches among financial institutions, alongside persisting challenges surrounding ransomware and increasing security risks linked to the swift implementation of generative AI technologies. This report provides essential insights for business owners who are increasingly vigilant about cybersecurity in an evolving digital landscape.
According to the findings, there has been a significant reduction in breach rates among financial services organizations, with the historical figure dropping from 49% in general survey results to 39% specifically for this sector. More strikingly, recent incidents of breaches have fallen dramatically, halving from 29% in 2021 to just 14% in 2024. Despite this positive trend, preparedness against cyberattacks remains alarmingly low, as only 25% of financial services respondents reported having a formal incident response plan, illustrating a slight improvement over the broader general survey.
Ransomware attacks continue to pose a serious challenge, with 18% of financial services organizations reporting such incidents. Notably, only 25% of these entities have established a response plan to address ransomware, which is concerning given the regulatory pressures they face. Among those that have been targeted, 5% opted to resolve attacks through ransom payments, while another 9% might consider this option in future incidents.
The swift adoption of generative AI technologies has introduced additional complexities, with 27% of financial firms planning to implement AI solutions within the next year—a rate surpassing the overall organizational average by five percentage points. While 73% of these companies recognize the challenges posed by rapidly evolving GenAI environments, 71% are moving ahead with production deployments, indicating a robust commitment to innovation amid security considerations.
In a statement regarding the findings, Erick Reyes, ANZ Director of Data Security for Thales, emphasized the delicate balance financial services organizations must maintain between sensitive data protection and compliance regulations. He noted that although compliance can be a significant hurdle for the industry, achieving compliance is correlated with reduced breach incidence. As new regulatory frameworks, such as APRA’s CPS 230, become enforceable, it is critical for financial organizations to adopt a proactive stance to meet both governmental and industry standards.
The integration of cloud services presents another layer of complexity. The report highlighted that 43% of data held by financial services institutions is stored in the cloud, with a growing trend toward utilizing multiple cloud providers—an increase from 54% in 2022 to 73% in 2024. However, human error remains a primary contributor to cloud-based breaches, accounting for 41% of incidents, a notable rise compared to the broader survey sample.
The findings also underscore a lack of preparedness among organizations when facing emerging technologies such as generative AI and quantum computing. A striking three out of four organizations globally do not have formal plans in place for responding to ransomware incidents, indicating a significant vulnerability in their security protocols. Additionally, companies grapple with securing assets in the cloud and embedding security within their development and operational workflows.
Crucially, the report connects compliance outcomes to breach history, revealing that organizations failing to pass compliance audits were far more likely to experience data breaches. In contrast, those successfully navigating compliance frameworks reported considerably fewer incidents.
As the financial services sector increasingly focuses on future security challenges, a significant 72% of organizations have expressed interest in post-quantum cryptography, with 48% planning to evaluate quantum-resistant algorithms in the next 18-24 months. This proactive approach demonstrates a commitment to securing sensitive data against the evolving threat landscape posed by quantum computing.
Thales conducted this research with a targeted group of financial services professionals across 18 countries, drawing insights from a wider Data Threat Report. The findings reflect current trends and strategies within the industry as it strives to navigate an array of complex cybersecurity threats.
In understanding cybersecurity incidents in this sector, business owners should consider adversary tactics aligned with the MITRE ATT&CK framework. Techniques such as initial access, persistence, and privilege escalation may have been pertinent in the context of the reported breaches and ransomware attacks, highlighting the need for organizations to develop robust defensive measures against evolving threats.
