Trust is the cornerstone of the financial services sector. Financial institutions’ clients rely on timely payment processing, efficient claim processing, continuous account accessibility and protection of their clients’ sensitive information. Consequently, cyber security for financial services can no longer be an afterthought as an Information Technology (IT) issue; it is now a critical business discipline that is linked to business resilience, regulatory compliance and business reputation.
Banks, lenders, advisors, brokers and cyber security insurance companies do not only need to prevent cyber attacks. They need to maintain availability of essential business services and manage cyber risks in a multi-cloud environment, through remote access to resources, from suppliers and increasing sophisticated fraudulent activity. The Financial Conduct Authority (FCA) has introduced the operational resilience framework, which will require all firms within scope to identify important business services, establish tolerance levels to potential disruption to those business services and continually assess and monitor the business service impact to ensure they are compliant with regulatory requirements. Cyber security in financial services is now a critical element of business continuity planning and not an isolated technical process.
Understanding Financial Cyber Security
Financial cyber security covers the people, processes and technology involved in protecting financial organisations’ payment systems, policy data, client records, digital banking tools and internal business operations. In practical terms, that means strong identity controls, secure configuration of technologies used, monitoring for threats, tested backup plans for disasters, assurance from suppliers of technologies and clear incident response planning. It matters because financial entities are highly connected with one another. If one point in a chain is compromised, the impact can spread quickly. DORA entered into application on 17 January 2025 across the EU, to strengthen the digital resilience of financial entities with a strong focus on ICT disruptions and third-party risk.
This is also why the language around financial services cyber security has changed. Building a stronger perimeter is not the only objective anymore. NIST’s zero trust guidance focuses on protecting resources rather than assuming trust based on network location, an approach that fits modern hybrid environments where staff, systems and suppliers operate across multiple platforms and locations.
Importance of Cyber Security in Finance
Cyber security in finance goes well beyond protecting files. It protects service availability, client confidence and a firm’s ability to meet regulatory expectations under pressure. A serious incident impacting a business will have potential impacts on multiple areas. This results in both Technical and Commercial Impacts; lost productivity, damaged reputation and loss of customer confidence.
Cyber security planning for financial services should be at leadership level. Strong cyber security finance planning enables safer digital transformation, smoother audits and more confident client relationships. It is also reflective of what buyers are increasingly expecting from technology partners. Andisa has positioned itself as a reliable IT services, robust cyber security, full compliance — “all tailored to you” service, which is the exact type of practical tone preferred by most regulated firms.
Common Threats to Financial Cyber Security
There are many types of cyber security threats that affect financial organisations. These include phishing attacks, credential theft attacks, and ransomware attacks, to name a few. According to Verizon’s 2025 finance snapshot, hacking has been the leading type of action in breaches to the financial and insurance sectors. Malware and social tactics have also been prevalent.
Phishing and credential abuse
Financial sector cyber security continues to be plagued by phishing because of its ability to target both people and systems. NCSC provides information regarding anti-phishing and states. Anti-phishing helps to stop scam emails, and it also improves overall organisational resilience. One convincing phishing attack in the financial sector can obtain an individual’s credentials, cause the deployment of malware, or cause a redirection in a payment process before the indicators of compromise are identified.
Business email compromise (BEC)
Another significant threat is business email compromise. This threat exploits trust within regular workflow processes. According to CISA, BEC is a form of payment fraud that utilises legitimate business email accounts to make unauthorised wire transfers. This threat is particularly relevant in the financial sector due to the high-speed nature of approvals and payment processing changes.
Ransomware and supplier risk
Ransomware encrypt files, steals data and applies extortion pressures. There is growing concern regarding supplier exposure. A financially vulnerable third-party vendor, unmanaged integrations with vendors, and poor security practices of cloud-based services may rapidly become operational issues for the financial organisation relying on these services. The UK Financial Conduct Authority, the UK Prudential Regulation Authority, and the Bank of England emphasise the importance of ICT third-party oversight as part of their Digital Operational Resilience Act (DORA).
Securing Financial Services from Cyber Threats
The strongest cyber security financial strategy starts with visibility. Firms need to know which systems support important business services, where sensitive data sits, who has access and which suppliers introduce dependency risk. From there, the right approach is layered and disciplined.
| Priority area | Why it matters | Practical action |
| Identity | Stolen credentials drive fraud and unauthorised access | Enforce MFA, remove unnecessary admin rights, review privileged accounts |
| Email security | Phishing and BEC remain major entry points | Strengthen filtering, verification processes and staff reporting |
| Resilience | Recovery speed determines business impact | Test backups, isolate recovery processes and rehearse incidents |
| Third parties | Suppliers extend both capability and risk | Review access, contracts, assurance evidence and response expectations |
Best Practices for Cyber Security in Finance
The best way to start is to simply do all of the basics consistently and do it well. Patch your system quickly. Secure endpoints. Protect your email. Don’t give employees too much access to things they don’t need to have access to. Protect important business data. Run recovery tests. Once you’ve done that, build on that foundation with risk assessment, employee education, supplier oversight, and incident planning.
Good financial cyber security isn’t about purchasing every cyber security tool. It’s about identifying the appropriate controls for a regulated entity performing client-facing activities and ensuring that those controls are being properly applied.
Andisa does this well as a whole, combining managed IT, managed finance cyber security, and managed compliance. They focus on providing businesses with simple solutions to help them grow without having to worry about excessive technical complexities.
FAQ
What is cyber security for financial services?
It is the combination of methods, technologies and governance that financial institutions use to defend themselves against cyber attacks, data breaches and disruptions to their services. Cyber security protects the personal data of customers of financial institutions as well as their electronic platforms for receiving payments, and supports compliance with regulations and the ability to continue operating when there are disruptions.
Why is cyber security in financial services important?
Financial organisations handle sensitive personal information about customers, make large-value transactions and provide critical business services. Strong cyber security financial services can help prevent fraudulent activity, protect a firm’s reputation, build and maintain customer confidence and ensure that critical services operate even when they experience disruptions.
What are the main cyber security threats to the financial sector?
Some of the most common cyber security threats facing financial institutions include phishing, ransomware, business e-mail compromise, credential theft and vulnerability to cyber attacks through third parties. In order to achieve robust cyber security for their finances, it is imperative that financial institutions take the necessary steps to mitigate these types of cyber security threats.
The best cyber security for financial services will not be restrictive. It is enabling. At Andisa we protect trust, support compliance and give firms more confidence in the way they serve clients. When cyber security in financial services is aligned with business priorities, firms are better placed to handle disruption, meet compliance demands and keep moving forward with confidence.
