SAN MATEO, Calif.–Web application attacks on the financial services sector increased 38% between January and May 2021, according to a new research that from Imperva Research Labs that also identifies the top five threats against the industry.
“Make no mistake: financial institutions are still ‘where the money is’,” said Terry Ray, SVP and fellow with Imperva. “Financial services hold the dubious title “most-breached sector,” accounting for 35% of all data breaches. To the delight of cybercriminals, the COVID-19 pandemic has driven large-scale growth in online banking, dramatically increasing the volume of sensitive customer data that’s available to steal.”
Top Five Threats
According to the Imperva analysis, the top five security threats in financial services are:
Sensitive Data Breaches
Imperva noted the surge in online banking and wider digitalization within the financial services sector has resulted in most organizations needing to manage dramatically higher volumes and greater complexity of data.
“This, along with the prospect of stricter data privacy laws on the horizon, is making sensitive data protection an unprecedented challenge,” the company said. “The speed of change in this industry imperils security controls being applied to all data stores, which exposes many financial services organizations to increased risk and vulnerability to a data breach. Cybercriminals know this. Attacks on sensitive data are escalating at an alarming rate. Imperva Research Labs reported that more than 870 million records had been compromised in January 2021 alone. This is more than the total number of compromised records in all of 2017.”
DDoS attacks
Layer 7, or application layer, DDoS attacks target the top layer or the application layer of the OSI model which helps facilitate connections over internet protocol, Imperva noted.
“Those that invest in mitigating attacks that degrade the customer experience have higher rates of recommendation, greater wallet share, and are more likely to up-sell or cross-sell products and services to existing customers,” Imperva stated. “On the other hand, when customers are denied access to their online banking services the reaction is one of indignation; often resulting in them complaining on social media platforms, switching to a different provider, and damaging the bank’s brand.”
Imperva Research Labs reported it found the number of requests per second (RPS) in Layer 7 DDoS attacks targeting financial services tripled since April 2021.
RDoS Threats
In late 2020, Imperva said it noted a considerable increase in the number of serious Ransom Denial of Service (RDoS) threats, targeting thousands of large commercial organizations globally including many in financial services.
The company explained RDoS campaigns are extortion-based Distributed Denial of Service (DDoS) threats motivated by financial gain.
“The extortionists often leverage the names of well-known threat actor groups in their extortion emails to demand payment in bitcoin currency to prevent a DDoS attack on the target’s network,” Imperva said.
In the first six months of 2021, Imperva Research Labs said noticed these threats were rising, and the attack patterns this year are very similar to those in 2020 where:
- The extortionist sends an email, sometimes accompanied by a sample attack (that often takes the company offline for a short period of time)
- The target is given a week's notice to get the payment in order
- The extortionist threatens to return with a massive attack at a scheduled time.
Client-Side Attacks
Imperva explained client-side attacks happen when a website user downloads malicious content and enables a bad actor to exploit the website by intercepting user sessions, inserting hostile content, and conducting phishing attacks, to name a few.
In financial services, the attacks focus on the skimming of payment information by exploiting third-party scripts used by thousands of websites across many industries, it added.
“Financial websites are relying more on third-party scripts to provide better services for their customers, but due to the high volume of digital transactions processing financial assets and other sensitive data, they are a rich target for client-side attacks,” Imperva stated. “Once credit card details are stolen, the data may be used immediately by cybercriminals to acquire goods or sold to other criminals for later exploitation. In either case, this poses a serious risk. Consumers and their financial services providers don’t find out until it is too late.”
Supply Chain Attacks
Since 1999, the Common Vulnerabilities and Exposures (CVE) system has reported more than 150,000 CVEs – zero-day vulnerabilities – in commonly used software applications and components, Imperva stated, adding that of those, more than 11,500 of them are characterized as “critical-severity,” though it is commonly understood that the vast majority of software vulnerabilities remain unreported.
“The front-to-back processing for all financial services integrates a complex set of software applications that involve back office, middle office, risk management, business developers, finance, and IT,” Imperva stated. “Application Programmable Interfaces (APIs) are at the core of these applications, enabling them to communicate with one another. APIs often self-document information, such as their implementation and internal structure, which can be used as intelligence to attack the software supply chain. Additional factors such as weak authentication, lack of encryption, business logic flaws and insecure endpoints make APIs even more vulnerable to attack.
“As financial services organizations partner with other companies to deliver and receive services, the supply chain attack surface grows and elevates the attack risk,” the company continued. “An under-protected supply chain makes your organization an easy target for cybercriminals who know that vulnerabilities in software applications and APIs are a way for them to infiltrate and compromise your business.”
The Data Being Stolen
Imperva Research Labs said it found 74% of the data stolen in the past several years is personal data.
“The widespread theft of personal data is a strong indication that many organizations are not putting enough protection into place to secure it,” according to Imperva. “In many instances, personal data theft from financial institutions is made easier because it is regularly shared between systems, people, and suppliers to complete transactions. As regulations governing data privacy become more stringent, it will be critical for every organization to have the capacity to discover, identify and classify personal data across their data estate. Only when an organization knows where personal data is hosted and what applications and users are accessing it, will it be able to extend the security controls that protect it.”