Cybersecurity Threats to FinTech

Attackers use a variety of threat vectors to attack organizations in the financial industry.

Some of the leading threats include:

Account Takeovers

Unauthorized access to customer or employee accounts

Insecure APIs

Poorly protected interfaces exposing sensitive financial data

Cloud Misconfigurations

Incorrect cloud settings that enable data leaks or breaches

Supply Chain Attacks

Third-party attacks that seek to use a business partner to gain access to valuable systems and data

Compliance Misalignment

Security weaknesses that would be remediated by regulatory adherence

Cryptocurrency Risks

From insecure storage of private keys to inconsistent regulation of exchanges

Common Attack Types

DDoS

Distributed Denial-of-Service (DDoS) attacks target financial institutions to disrupt online services, preventing customers from accessing banking platforms, trading systems, and payment gateways. Attackers leverage networks of compromised devices to overwhelm servers with malicious traffic, causing costly downtime. Security controls that effectively shrink a financial organization's attack surface help to close off potential threat vectors used in DDoS attacks.

Malware

Malware poses a major threat to financial institutions' sensitive customer data and transaction systems. There are several ways cybercriminals can deploy malicious software such as trojans, keyloggers, and spyware to steal credentials and intercept sensitive data. These attacks can result in financial losses, regulatory penalties, and erosion of customer trust. Offensive security tools help prevent malware infections by helping security teams identify and neutralize threats before cybercriminals can infiltrate systems.

Ransomware

Ransomware groups often target the financial industry for many reasons, including the fact that the data is high-value and the endpoints are plentiful. These attacks can be multi-faceted and can cost financial organizations precious time, money, and irreparably damage their reputation. Proactive security measures like vulnerability management, pen testing, and red teaming help prevent the likelihood of a successful ransomware attack, by pinpointing security weaknesses before they are exploited.

Phishing

Attackers trick employees or customers into revealing sensitive information such as login credentials or account details through fraudulent emails, texts, or websites. This often leads to account takeovers or unauthorized transactions.

Web Application Exploits

Vulnerabilities in online banking portals or financial apps can be exploited to gain unauthorized access, manipulate transactions, or steal confidential data. Common targets include authentication flaws and session management weaknesses.

Injections

SQL or code injection attacks allow hackers to insert malicious commands into financial systems via input fields or APIs. This can expose customer data, alter records, or compromise backend databases.

Social Engineering

Tactics like phishing, smishing, and vishing prove successful for malicious actors. Social engineering attacks seek to exploit what is often the weakest link in an organization’s collective security posture – its people. Financial organizations are heavily targeted by phishing scams and must employ security solutions and well as regular security awareness trainings to help combat these attacks.

Insider Threats

Insider threats are uniquely challenging for financial organizations because employees and contractors using legitimate credentials may use that access to steal financial data or engage in fraud or embezzlement. But even accidental insider threats occurring via simple human error can seriously damage an organization's security posture. Implementing Zero Trust principles and limiting unnecessary access to critical resources can curb intentional insider threat. To mitigate accidental insider threats, financial organizations can look to human risk management and security awareness training to help employees recognize cybersecurity warning signs.

Man-in-the-Middle Attacks

Man-in-the-Middle attacks threaten financial institutions by intercepting communications between users and legitimate systems, allowing attackers to steal credentials, manipulate transactions, and exfiltrate sensitive data. These attacks often exploit unsecured networks or compromised infrastructure to position themselves between customers and banking platforms without detection. Strong encryption, certificate validation, and multi-factor authentication help prevent MitM attacks by ensuring secure communications and verifying the authenticity of all connections.

Breach Repercussions

The average global cost of a breach in the financial industry

$6.08M

The proportion of financial institutions that experience a cyberattack annually

2/3

The average number of days it takes companies to discover a cyberattack

207 Core Impact: Penetration Testing for Financial Institutions

Core Impact is designed to enable security teams to conduct advanced penetration tests with ease. With guided automation and certified exploits, this powerful penetration testing software enables you to safely test your environment using the same techniques as today's attackers. These features are available both on desktop and mobile.

Replicate attacks across network infrastructure, endpoints, web, and applications to reveal exploited vulnerabilities, empowering you to immediately remediate risks.

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√ Intuitive automation for deploying advanced level tests

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√ Ransomware simulation

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√ Tailored reporting to build remediation plans

√ Powerful integrations with other pen testing tools and more than 20 vulnerability scanners

√ Robust safety features, including fully encrypted, self-destructing agents

Manage All Pen Testing Phases

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Prove Regulatory Compliance

Offensive Security Bundles

Create a mature security program at a discounted price with our Offensive Security bundles. You can assemble your proactive security portfolio all in one place, choosing the combination that best fits the needs and security stance of your organization. Each one of our bundle offerings provides efficiency by providing centralization, reduced console fatigue, and the same best-in-class sales and technical support that Fortra offers across solutions.

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Combine Core Impact with vulnerability management solution, Fortra VM to get the most out of your pen tests. Use Fortra VM to identify and prioritize vulnerabilities. From there, you can gain further insights and assess risk using Core Impact.

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Pair Core Impact with Cobalt Strike, threat emulation software. With these solutions, you'll be able to accelerate your security with both pen tests, advanced adversary simulation, and Red Team engagements.

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FAQs

What is penetration testing in fintech?

Penetration testing in fintech is a controlled security assessment where ethical hackers simulate cyberattacks on financial systems to uncover vulnerabilities before malicious actors exploit them.

What are the latest trends and discoveries in fintech pen testing?

Current trends include AI-driven threat detection, cloud security testing, API vulnerability assessments, and compliance-focused testing to meet evolving regulations like PCI DSS and GDPR.

At what point does a financial institution need to start penetration testing?

Penetration testing should begin as soon as you launch digital services or handle sensitive financial data. It’s critical during major updates, new integrations, or regulatory audits.

How to decide which penetration testing tool is best for you?

Choose a tool based on your tech stack, compliance requirements, and testing scope. Consider factors like automation capabilities, reporting features, and integration with your existing security workflows.

What are the repercussions for not penetration testing?

Skipping penetration testing can lead to data breaches, financial loss, regulatory penalties, and reputational damage — often costing far more than proactive security measures.

How long does it take to set up a penetration test?

Setup time varies by scope and complexity but typically ranges from a few days to two weeks, including planning, execution, and reporting.

If I am new to penetration testing in fintech, what are my next steps?

Start by assessing your security needs, define your compliance obligations, and engage a trusted penetration testing provider. From there, establish a regular testing schedule and integrate findings into your security strategy. If you don't have the in-house resources to run pen tests, consider penetration testing services.

What does a modern, tested cyber incident response plan look like for a financial institution?

A tested plan includes clearly defined roles and escalation procedures, communication protocols for customers and regulators, forensic and containment playbooks, regular tabletop exercises, and integration with business continuity planning that's validated through realistic simulations.

Related Resources

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