KnowBe4: U.S. financial organizations under siege from cybercriminals

TAMPA BAY, Fla., April 16, 2024 -- KnowBe4, a provider of security awareness training alongside its simulated phishing platform, released its 2024 Banking Report, revealing a stark increase in targeted social engineering and ransomware attacks against the U.S. financial sector.

The KnowBe4 report reveals that there was a 60% spike in successful ransomware attacks across various industries compared to the same period in the previous year and a 300% surge in attacks against financial services firms, according to Corvus Insurance in 2023.

Out of these, 74% of breaches involved the human element. The report shows that costs to financial institutions from cyberattacks are among the highest in the world, at an average of $5.9 million per incident. This makes the threat of ransomware following a social engineering attack arguably the biggest cyber risk facing financial services organizations today.

The report further shows that small banks are particularly vulnerable to cyberattacks and may experience a greater impact, as they struggle to maintain the same standards and regulations as larger banks. They face the same growing risks, with fewer resources and less ability to attract the skilled personnel needed to respond to cyberattacks, making them an easier and more attractive target for cybercriminals.

"Generative AI has introduced an alarming escalation of cyberattacks as bad actors carry out highly targeted social engineering attacks at an industrial scale," says Stu Sjouwerman, CEO of KnowBe4. "A breach of critical information can impact the trust customers have in financial institutions and hurt their reputations. Therefore, the financial sector in the U.S. must be persistently committed to safeguarding customer trust by maintaining a strong security culture and focusing on managing human risk."

To download the KnowBe4 "Under Siege From Cybercriminals: U.S. Financial Organizations Struggle With Attacks" report, visit here.