# How financial services are overhauling security to defend against spoofing scams 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: Financial Services Under Siege: The Growing Threat of Email Meta Description: Learn how financial institutions are bolstering their defences with real-time detection and prevention capabilities to combat spoofing scams and cyber threats. URL: https://financedigest.com/how-financial-services-are-overhauling-security-to-defend-against-spoofing-scamshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/img1835-1984-1736814571150-compressed.jpg) _By_ **_Fabien Rech_** _, SVP EMEA at Trellix_ **Introduction** The data-rich [financial services sector](https://www.financedigest.com/iot-for-the-financial-sector.html "IoT for the Financial Sector") is highly lucrative for fraudsters, to such an extent that it is a top target for malicious emails and other cyberattacks. Spoofing is a particularly common attack technique used against the sector – whereby malicious actors coax targets to open and respond to fraudulent [emails or calls from a seemingly trusted](https://www.financedigest.com/challenger-banks-ensuring-trust-in-your-email.html "Challenger banks: Ensuring trust in your email "), legitimate source. These fraudulent impersonations are increasingly being used to target [financial institutions](https://www.financedigest.com/the-future-of-financial-institutions-in-2023.html "The Future of Financial Institutions in 2023"). Even with robust security measures in place, [banks can often be the victims of spoofing attempts](https://www.standard.co.uk/business/money/banks-leaving-customers-vulnerable-to-fraudulent-spoofing-scams-says-which-b1043655.html), as fraudsters look to access systems and obtain personal information. With the threat landscape constantly evolving and new attack techniques emerging, it is now all the more challenging for banks and other [financial services](https://www.financedigest.com/can-financial-services-brands-ever-be-credible-on-social.html "Can financial services brands ever be credible on social? ") to adapt to new threats. Despite these challenges, [financial institutions are taking proactive steps](https://www.financedigest.com/5-steps-to-strengthening-your-online-financial-security.html "5 Steps to Strengthening Your Online Financial Security") to minimise the risk of cyberattacks by not only defending against fraudulent impersonations, but by bolstering their security measures. **A prime target for spoofing** Rich in sensitive, personal information, there is no doubt that [financial services](https://www.financedigest.com/how-crowdsourcing-can-help-drive-the-benefits-of-advanced-analytics-in-financial-services.html "HOW CROWDSOURCING CAN HELP DRIVE THE BENEFITS OF ADVANCED ANALYTICS IN FINANCIAL SERVICES") are a data goldmine for cybercriminals. In fact, [recent research](https://www.trellix.com/en-us/advanced-research-center/threat-reports/nov-2022.html) from Trellix found that financial services was the sector most impacted by malicious emails in Q3 2022. While phishing remained the most common type of malicious email – [accounting for around](https://www.financedigest.com/5-common-mistakes-around-accounts-payable-automation.html "5 Common Mistakes Around Accounts Payable Automation") two-thirds (68%) of attacks – spoofing is a significant cause for concern. As the origin point for most cyberattacks, email continues to be the [top attack vector and main entry point for malicious actors because it can be highly targeted and customised, and so email security remains a top priority](https://www.financedigest.com/2017-cfo-outlook-top-priorities-as-new-year-gets-underway.html "2017 CFO Outlook: Top Priorities as New Year Gets Underway"). [Financial service](https://www.financedigest.com/as-hackers-declare-cyberwarfare-financial-services-cannot-afford-to-be-complacent.html "As hackers declare cyberwarfare, financial services cannot afford to be complacent") organisations are therefore continually looking for methods to effectively bolster their defences against email-borne threats to defend their systems – and their customers – against attack. **Strengthening defences on the front line** To detect potential spoofing scams and mitigate attacks, it is crucial for [financial services](https://www.financedigest.com/what-can-we-learn-from-financial-services-security.html "What can we Learn from Financial Services Security?") to have an effective email defence system in place. While organisations can draw on existing tools and resources to help defend against fraudulent impersonations – such as embedded [security and antispam filters in email services](https://www.financedigest.com/managing-the-hidden-security-gap-in-financial-services-the-office-printer.html "MANAGING THE HIDDEN SECURITY GAP IN FINANCIAL SERVICES: THE OFFICE PRINTER") to detect potential scams – these defence techniques can be simplistic and may fail to respond fast enough to attacks. In addition, with traditional tools focused on detecting malware, cybercriminals are now adapting and implementing dynamic malwareless techniques, such as that used in spoofing scams. This can result in [security gaps that can leave financial](https://www.financedigest.com/post-brexit-uk-workers-can-have-financial-security.html "Post Brexit – UK workers CAN have financial security") organisations open to risks that malicious actors may be ready to exploit. From [security breaches and access to customer data](https://www.financedigest.com/the-financial-sector-must-act-to-tackle-internal-data-security.html "THE FINANCIAL SECTOR MUST ACT TO TACKLE INTERNAL DATA SECURITY"), to the potential complete shutdown of business operations, the implications of a successful spoofing attack are significant. To combat this, security teams within this [sector](https://www.financedigest.com/why-the-finance-sector-must-prioritise-mobile-security-over-innovation.html "Why the finance sector must prioritise mobile security over innovation") are now deploying real-time detection and prevention capabilities to up-level their security measures. **Adapting to new threats** With cyberattacks increasingly becoming more sophisticated, [financial institutions](https://www.financedigest.com/what-the-future-holds-for-financial-institutions-in-2023.html "What the Future Holds For Financial Institutions in 2023") recognise that it’s no longer enough to simply put up a shield to defend against incoming attacks. Malicious actors are creative and will always be looking for new routes into this data-rich sector. To keep the business infrastructure safe and build a confident, resilient organisation, [financial institutions are now looking to implement a new approach](https://www.financedigest.com/4-key-financial-trends-as-we-approach-2021.html "4 Key Financial Trends as we Approach 2021"). These organisations need to be one step ahead of fraudsters to mitigate ever-evolving threats by implementing a [security](https://www.financedigest.com/why-preparation-for-new-swift-cyber-security-standards-needs-to-start-now.html "‘Why preparation for new SWIFT cyber security standards needs to start now’") model that can flex to their needs, turning the once static shield into an adaptable one. Extended detection and response (XDR) can provide businesses with a holistic ecosystem that consolidates all security products into an interconnected, constantly communicating platform that can [continually adapt](https://www.financedigest.com/scholz-if-germany-continues-to-adapt-we-will-make-it-through-winter.html "Scholz: if Germany continues to adapt, we will make it through winter") to the threat landscape. This will not only enable the sector to withstand attacks, but will also build [resilience against new and emerging threats in the future](https://www.financedigest.com/redefining-resilience-how-covid-19-is-forging-a-work-from-home-future-in-the-finance-sector.html "Redefining resilience: How COVID-19 is forging a work-from-home future in the Finance Sector"). **[Enhancing security](https://www.financedigest.com/rivetz-enhances-security-for-blockchain-based-apps-with-trustonic.html "Rivetz Enhances Security for Blockchain-based Apps with Trustonic") measures provide value** Although financial organisations are renowned for having strong and sophisticated security postures, cybercriminals will continue to [test their defences in innovate ways](https://www.financedigest.com/3-ways-to-go-about-testing-your-business-ux-design.html "3 Ways to Go About Testing Your Business’ UX Design"). To [remain one step ahead](https://www.financedigest.com/swiss-watchmakers-remain-upbeat-ahead-of-geneva-gathering.html "Swiss watchmakers remain upbeat ahead of Geneva gathering"), they must stay abreast of the latest techniques – such as fraudulent impersonations – to shore up their security measures. Taking this [proactive approach](https://www.financedigest.com/the-importance-of-a-proactive-and-collaborative-approach-to-reducing-contactless-fraud.html "THE IMPORTANCE OF A PROACTIVE AND COLLABORATIVE APPROACH TO REDUCING CONTACTLESS FRAUD") to cybersecurity will not only enable the finance sector to adapt quickly to new threats but will accelerate detection and correction through the entire defence lifecycle. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---