By Dominik Birgelen, CEO of oneclick AG Group
Artificial Intelligence (AI) is making significant strides across various industries, and finance is no exception. According to a recent report by Statista, generative AI experienced substantial growth across financial services in 2024, with 52% of respondents reporting active use of the technology.
With AI disrupting the finance industry, organisations are facing both unprecedented opportunities and escalating risks. From automating routine time-consuming tasks to streamlining customer service, financial organisations are using AI in multiple ways. That also includes cybersecurity, where companies are integrating AI into their anomaly detection systems.
However, the rise of AI-powered cyber threats, data privacy concerns, and increasingly complex regulatory environments require finance companies to strengthen their cybersecurity postures.As fraudsters increasingly exploit IT vulnerabilities boosted by AI, it is imperative for businesses to fortify their cybersecurity posture.
For organisations that manage vast volumes of sensitive financial data, the question is no longer whether AI will impact their security posture but how companies adapt to protect their sensitive data.
Striking a delicate balance
The interconnected nature of AI innovation and cybersecurity risks makes for a high-stakes yet profitable scenario for financial organisations. On one hand, AI promises critical advancements in automating repetitive tasks and strengthening cybersecurity through improved threat forensics and historical data analysis. On the other, AI presents unique challenges when it comes to data management and data protection, which become progressively more complicated as LLMs expand to accommodate user requests at a faster rate.
Privacy violations are a significant concern for all businesses. However, for financial organisations, the emphasis on security is even stronger, given the vast amount of sensible data they process daily, which could potentially be exploited for all kinds of wrongdoings by malicious actors. While AI tools promote highly efficient data-handling, feeding confidential customer information into public or non-compliant AI systems is a misstep that can lead to potential widespread breaches with devastating business consequences.
The risks associated with AI misuse extend beyond data mismanagement. The potential for AI to be used as a vector for sophisticated attacks, such as deepfakes, automated phishing, and AI-generated malware, is another significant challenge facing financial organisations. In an era where cybersecurity is paramount, the failure to secure customer data can result in substantial business outlays.
How finance organisations can stay protected
Outdated cybersecurity strategies, particularly signature-based detection tactics and reactive-only models, are no longer sufficient in the age of AI. A robust cybersecurity framework, such as zero-trust architecture (ZTA), can help mitigate emerging risks by ensuring that only authorised entities can access sensitive data and systems.
By operating on the principle of least privilege, ZTA helps businesses implement multi-layered, continuous authentication and verification mechanisms, ensuring that each user, whether internal or external, is required to pass through the same level of security authentication continually. This approach makes it significantly harder for malicious actors to infiltrate the network, thereby bolstering cyber resilience. Through ZTA, companies can react quickly if suspicious activity is detected. Importantly, ZTA solutions can also enable financial organisations to segment their networks into distinct zones, helping to contain breaches and prevent malware propagation.
With hackers using AI to amplify the tools they use to target their victims, businesses without robust defences face increased risk of data theft, extortion and operational disruptions. By utilising a holistic cybersecurity strategy based on ZTA, financial companies can protect their data assets and maintain digital integrity in the long run.
The importance of a security-first culture
The need to promote cybersecurity awareness across all levels of the organisation, including AI ethics training and continuous security education for staff, is critical. Humans often represent the weakest link, making companies vulnerable despite robust cybersecurity infrastructure.
ZTA reduces the risks of employees falling victim to attacks by limiting the lateral movement of hackers, minimising the impact of potential staff distraction or unawareness. This is achieved by implementing architectural changes that restrict data access, enforce authentication, and monitor behaviour in real time. However, relying solely on ZTA without appropriate staff training makes for an unsustainable cybersecurity strategy in the long run.
Training staff is not only effective in raising awareness of the possible threats existing in the digital landscape but also instils a sense of accountability in employees for safeguarding business data. While relevant across all businesses, this is especially important for in the financial industry, where cyberattacks can lead to severe financial, reputational and legal consequences.
Building an all-encompassing cybersecurity strategy is essential; by ensuring a fortified digital posture and integrating ongoing staff training, financial organisations will be able to safeguard their data and future-proof their assets in the era of devastating cyberthreats.
