Cyber Assaults through DDoS Methods Escalate on Financial Institutions
In the ever-evolving world of cybersecurity, financial institutions are facing a significant challenge: the increasing sophistication and frequency of Distributed Denial of Service (DDoS) attacks. These attacks, which are part of the growing cybercrime-as-a-service model, can range from mere nuisances to serious threats, as their effectiveness continues to escalate.
DDoS attacks are being outsourced by cybercriminals, making it harder to identify perpetrators. This trend, known as the cybercrime-as-a-service model, provides illicit software or services to individuals or groups for financial gain. DDoS attacks are a subset of the malware-as-a-service model, and their usage is increasing, making it easier for cybercriminals to outsource their operations.
The growing frequency of DDoS attacks is a cause for alarm. Financial institutions, in response, are adapting to this rising threat by increasingly employing AI-driven, real-time threat detection and multi-layered defense systems. They are shifting from traditional static defenses like rate limiting and IP filtering to dynamic, AI-powered mitigation solutions that automatically detect and neutralize attacks within milliseconds.
Leading cybersecurity firms like Radware, Cloudflare, and Akamai are at the forefront of this shift, using AI-powered traffic analysis and behavioral analytics to distinguish legitimate from malicious traffic and respond quickly at scale. Financial institutions are also combining cyber and physical security in integrated security operations centers to improve coordinated responses and share threat intelligence on a unified platform, enhancing incident response agility.
Additionally, financial institutions are implementing multi-factor and adaptive authentication to guard internal and customer-facing systems against credential theft and phishing. They are also protecting data at rest, in transit, and during use with encryption and secure IoT practices to reduce attack surface exposure. Cross-training of security teams is also being employed to deal with hybrid threats that combine physical and cyber intrusion tactics.
In response to the rise of cybercrime-as-a-service, financial institutions are leveraging global and multi-cloud threat intelligence and AI detection tools that monitor social media, geopolitical developments, and cyber data feeds to anticipate new attack methods and actor behaviors early. They are also adhering to regulatory compliance frameworks such as the EU’s Digital Operational Resilience Act (DORA), which mandates comprehensive cybersecurity standards, including assessments of third-party ICT providers, resilience training, and incident reporting to mitigate supply chain cyber risks.
Overall, financial institutions are moving toward a converged, AI-driven, intelligence-led cybersecurity posture that unites physical and digital security, continuously adapts to evolving threat landscapes, and integrates regulatory resilience mandates to counter rapidly growing DDoS and cybercrime-as-a-service threats. This proactive approach is crucial in the fight against the growing threat of DDoS attacks.
References:
[1] Radware (2021). The State of DDoS Attacks 2021: Threat Trends, Attack Vectors, and Mitigation Strategies. Retrieved from https://www.radware.com/content/dam/website/docs/resources/whitepapers/state-of-ddos-attacks-2021-threat-trends-attack-vectors-and-mitigation-strategies.pdf
[2] Cloudflare (2021). 2021 DDoS Threat Report. Retrieved from https://www.cloudflare.com/learning/ddos/ddos-attacks/2021-ddos-threat-report/
[3] Akamai (2021). State of the Internet/Security: Q4 2020. Retrieved from https://www.akamai.com/us/en/about/news/state-of-the-internet-security-q4-2020.jsp
[4] European Commission (2020). Proposal for a Regulation of the European Parliament and of the Council on Digital Operational Resilience. Retrieved from https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12523-Digital-Operational-Resilience-Act-DORA
- The rapid evolution in technology has led to an increased use of AI-driven, real-time threat detection and multi-layered defense systems in the banking-and-insurance industry, as financial institutions seek to combat the growing threat of DDoS attacks, a subset of the cybercrime-as-a-service model.
- In light of the escalating sophistication and frequency of Distributed Denial of Service (DDoS) attacks in the finance sector, cybersecurity firms like Radware, Cloudflare, and Akamai are deploying AI-powered traffic analysis and behavioral analytics to not only distinguish legitimate from malicious traffic but also to respond quickly and at scale, thereby contributing to the technology industry's efforts in combating cybercrime.
