# Cybersecurity Predictions to Watch in 2023 and Beyond
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-01-17
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: The Growing Threat of Cybercrime in Financial Institutions
Meta Description: Learn about the rising global cybercrime threat, ransomware attacks, and the cybersecurity stigma impacting financial institutions. Stay ahead with modern
URL: https://financedigest.com/cybersecurity-predictions-to-watch-in-2023-and-beyondhtml

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_By_ **_Allen Eaves,_** _Managing Director of Information Security and Technology at Jack Henry_

The total global loss caused by cyber criminals is expected to reach [$30 billion by 2023](https://www.infosecurity-magazine.com/news/ransomware-exceed-30bn-dollars-2023/); and this is only growing in the years to come. In fact, cybercrime is said to cost the world [$10.5 Trillion by 2025](https://cybersecurityventures.com/hackerpocalypse-cybercrime-report-2016/), making it vital for financial institutions to continue to prioritize cybersecurity spending.

The evolution of technology is moving fast, and unfortunately, while this is great for the industry as a whole, new technology means new doors are open for [cyber criminals to enter and attack](https://www.financedigest.com/banks-can-provide-a-protective-shield-to-defend-customers-from-cyber-attack.html "Banks can provide a protective shield to defend customers from cyber attack"). They’re finding new entryways to cloud-based networks, targeting unpatched or software vulnerabilities to extract data, and breaking through non-traditional entry avenues such as cryptocurrencies and [decentralized finance](https://www.financedigest.com/how-decentralized-finance-can-aid-in-the-acquisition-process.html "How Decentralized Finance can aid in the acquisition process") (DeFi) systems.

_Below outlines what cyber tactics [financial institutions should keep an eye on along with strategies to prepare and fight cybercrime as we head](https://www.financedigest.com/the-hidden-financial-woes-of-international-students-heading-for-the-uk.html "The Hidden Financial Woes of International Students Heading for the UK") into the new year:_

**Ransomware will remain a** [top threat](https://www.financedigest.com/3-top-digital-asset-threats-facing-your-brand-in-2017.html "3 top digital asset threats facing your brand in 2017")

Every [14 seconds](https://www.enterpriseappstoday.com/stats/cybersecurity-statistics.html#:~:text=Key%20Cybersecurity%20Statistics%20(Editor's%20Choice),-The%20cybersecurity%20market&text=Cybersecurity%20statistics%20show%20that%20the,attack%20occurs%20every%2014%20seconds.) one ransomware attack occurs. Ransomware is a major, [successful business](https://www.financedigest.com/why-mobile-apps-are-crucial-for-a-successful-business.html "Why Mobile Apps are Crucial for a Successful Business") of its own. Hackers have been exploiting the public’s interest about ongoing crises, embedding ransomware into phishing emails and using pandemic, inflation, and war-related news as a front to entice victims to click on the malicious links. Even with the global awareness of ransomware and malware, and the ever-increasing vigilance of IT teams, the most common entry point for ransomware continues to be users accidentally clicking malicious links, visiting insecure websites, or engaging with phishing emails.

When a bank or [credit union](https://www.financedigest.com/6-reasons-to-take-a-car-loan-from-a-credit-union.html "6 Reasons to Take a Car Loan From a Credit Union") is hit with ransomware or another type of cyberattack, the potential for loss is great; and that’s not just financial loss. Attack-induced system outages can last weeks or months, leading to stalled business growth, unprocessed loans, and lost customers who feel their [money is no longer safe](https://www.financedigest.com/your-money-is-safe-but-your-data-might-not-be.html "YOUR MONEY IS SAFE, BUT YOUR DATA MIGHT NOT BE") with their institution. Financial institutions need a modern technology approach to better detect, mitigate, and prevent [cybersecurity risks in today’s ever-changing and complex IT and security](https://www.financedigest.com/2018-it-security-predictions-methods-for-attacks-investment-areas-cybersecurity-strategies.html "2018 IT Security Predictions-Methods For Attacks, Investment Areas & Cybersecurity Strategies") environment. Those who embrace new and safer technologies, like cloud-based systems, will be able to more confidently and securely serve their accountholders.

**The cybersecurity stigma is worsening**

It’s nearly impossible to accurately gauge attack trends because so many incidents never publicly come to light. In 2021, [65% of data breaches](https://governmenttechnologyinsider.com/cyber-threats-65-percent-go-undetected-by-todays-organizations/) went undetected worldwide. There is a sense of secrecy and shame for consumers when they fall victim. The disconnect between what actually happens when an organization [becomes a cyberattack victim](https://www.financedigest.com/how-to-ensure-your-new-business-doesnt-become-a-victim-of-covid-related-fraud.html "How to ensure your new business doesn’t become a victim of Covid-related fraud") and what the public thinks happens is strong. [Cybersecurity acts](https://www.financedigest.com/privacy-vs-security-is-the-cybersecurity-information-sharing-act-beneficial.html "PRIVACY VS SECURITY: IS THE CYBERSECURITY INFORMATION SHARING ACT BENEFICIAL?") are complex and invisible and carried out by highly skilled, sometimes state-sponsored groups that are becoming more sophisticated. It’s no longer just the stereotypical basement hacker in a hoodie.

The stigma needs to be removed. Cybersecurity education and incentives tailored to the [financial institution and accountholder’s needs](https://www.financedigest.com/cfos-need-a-focus-on-forex-in-financial-planning-tools-accountagility-reveals.html "CFOs need a focus on forex in financial planning tools, Accountagility reveals") is a good place to start. [Developing a culture of openness where both employees and accountholders are not afraid to be totally transparent about the suspicious activity they encounter online](https://www.financedigest.com/the-benefits-of-developing-online-stores-through-shopify.html "The Benefits of Developing Online Stores Through Shopify") is key. With the education tools and training in place, [financial institutions can become a valuable trusted advisor](https://www.financedigest.com/how-mifid-ii-will-impact-financial-advisor-communications.html "HOW MIFID II WILL IMPACT FINANCIAL ADVISOR COMMUNICATIONS") for accountholders and employees – not only when it comes to making smarter financial decisions, but also in providing a secure environment for accountholders to conduct their banking tasks.

**Regulatory pressures are putting more stress on** [financial institutions](https://www.financedigest.com/a-cloud-migration-guide-for-financial-institutions.html "A Cloud Migration Guide for Financial Institutions")

In response to the economic crisis, [regulators are strengthening their oversight of banks](https://www.financedigest.com/exclusive-u-s-regulator-seeks-sale-of-silicon-valley-bank-signature-bank-portfolios-sources.html "Exclusive-U.S. regulator seeks sale of Silicon Valley Bank, Signature Bank portfolios-sources") and credit unions. Institutions need a [strong defense system and education materials in place to protect themselves and accountholders from falling](https://www.financedigest.com/stocks-fall-as-strong-u-s-payrolls-muddies-rate-bets.html "Stocks fall as strong U.S. payrolls muddies rate bets") victim to bad actors. A strategic technology partner will provide great value here monitoring and reviewing upcoming regulatory changes to ensure the financial institution has the proactive measures in place that match their [business needs and tolerance for disruptions](https://www.financedigest.com/disruption-and-innovation-four-predictions-for-the-business-landscape-in-2016.html "DISRUPTION AND INNOVATION – FOUR PREDICTIONS FOR THE BUSINESS LANDSCAPE IN 2016").

**Uptick in Cyberattacks and Fraud Happening Simultaneously**

There has been a rise in multiprong attacks where we see [fraud](https://www.financedigest.com/attacking-banking-and-fintech-fraud-head-on-through-ai-infused-strategies.html "Attacking Banking and Fintech Fraud Head-On Through AI-Infused Strategies ") attempts alongside cybersecurity attacks, especially at financial institutions. While we have seen cyberattacks paired with fraud attempts for the last decade, we are now seeing another wave of fraudulent activity timed alongside [ransomware attack](https://www.financedigest.com/preventing-an-operationally-crippling-ransomware-attack-do-you-know-where-your-risk-exposure-lies.html "PREVENTING AN OPERATIONALLY CRIPPLING RANSOMWARE ATTACK –  DO YOU KNOW WHERE YOUR RISK EXPOSURE LIES?") and/or DDoS attacks. Effectively, cybercriminals have found that while an organization is focused on [business continuity and managing an ongoing cyber incident there are often increased opportunities](https://www.financedigest.com/the-north-heads-south-to-mipim-en-masse-to-corner-new-real-estate-business-opportunities.html "The North heads South to MIPIM en masse to corner new real estate business opportunities") for carrying out a fraud scheme.

Consumers already have enough [stress and anxiety about their finances](https://www.financedigest.com/4-reasons-your-finance-employees-are-showing-signs-of-stress.html "4 reasons your finance employees are showing signs of stress") in light of the recession. Rather than worrying about if their data is safe, they should be focusing on how to save and [live a healthy](https://www.financedigest.com/healthy-lifestyle-benefits-a-guide-to-better-living.html "Healthy lifestyle benefits – a guide to better living") financial life. [Financial institutions need to place a sense of urgency on investing in the right technology](https://www.financedigest.com/shakedown-on-horizon-for-financial-technology-world.html "Shakedown on horizon for financial technology world") that can help identify gaps and protect their systems vulnerable to internal and external threats, allowing them to focus more on becoming the center of their accountholders’ financial lives.

_Allen Eaves is the [Managing Director](https://www.financedigest.com/anya-libova-joins-apester-as-uk-managing-director.html "Anya Libova joins Apester as UK Managing Director") of Information Security and Technology at Jack Henry._ _Jack Henry (NASDAQ: JKHY) is a [leading SaaS provider primarily for the financial services](https://www.financedigest.com/whats-in-store-for-2016-leading-online-trading-services-provider-easy-forex-reveals-predictions-for-the-new-year.html "WHAT’S IN STORE FOR 2016? LEADING ONLINE TRADING SERVICES PROVIDER EASY-FOREX REVEALS PREDICTIONS FOR THE NEW YEAR") industry._


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