--- title: "What Makes Financial Institutions A Prime Phishing Target For Threat Actors | Phish Protection" description: "All organizations providing financial services such as banking, investment, and insurance constitute financial institutions." image: "https://phishprotection.com/og/blog/what-makes-financial-institutions-a-prime-phishing-target-for-threat-actors.png" canonical: "https://phishprotection.com/blog/what-makes-financial-institutions-a-prime-phishing-target-for-threat-actors/" --- Quick Answer All organizations providing financial services such as banking, investment, and insurance constitute financial institutions. Financial frauds and \*\*identity thefts\*\* in such institutions have increased significantly with the digitalization of the sector. Today, \_financial institutions are among the top targets of phishing and other cyber threats\_. Share [ ](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fphishprotection.com%2Fblog%2Fwhat-makes-financial-institutions-a-prime-phishing-target-for-threat-actors%2F "Share on LinkedIn") [ ](https://twitter.com/intent/tweet?text=What%20Makes%20Financial%20Institutions%20A%20Prime%20Phishing%20Target%20For%20Threat%20Actors&url=https%3A%2F%2Fphishprotection.com%2Fblog%2Fwhat-makes-financial-institutions-a-prime-phishing-target-for-threat-actors%2F "Share on X/Twitter") [ ](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fphishprotection.com%2Fblog%2Fwhat-makes-financial-institutions-a-prime-phishing-target-for-threat-actors%2F "Share on Facebook") [ ](https://reddit.com/submit?url=https%3A%2F%2Fphishprotection.com%2Fblog%2Fwhat-makes-financial-institutions-a-prime-phishing-target-for-threat-actors%2F&title=What%20Makes%20Financial%20Institutions%20A%20Prime%20Phishing%20Target%20For%20Threat%20Actors "Share on Reddit") [ ](mailto:?subject=What%20Makes%20Financial%20Institutions%20A%20Prime%20Phishing%20Target%20For%20Threat%20Actors&body=Check out this article: https%3A%2F%2Fphishprotection.com%2Fblog%2Fwhat-makes-financial-institutions-a-prime-phishing-target-for-threat-actors%2F "Share via Email") ![Phish Protection blog post image](https://media.mailhop.org/phishprotection/images/2020/12/phishing-definition-1379.jpg) All organizations providing financial services such as banking, investment, and insurance constitute financial institutions. Financial frauds and **identity thefts** in such institutions have increased significantly with the digitalization of the sector. Today, _financial institutions are among the top targets of phishing and other cyber threats_. The graph illustrates that the financial industry is among the worst hit by **phishing scams** of all sectors. Regardless of the security shields established by such institutions, _phishing attacks keep targeting banking organizations, including their employees and customers_. ### Some Major Phishing Attacks On Financial Institutions Phishing and [Business Email Compromise](/blog/something-new-the-dual-impersonation-business-email-compromise-scam/) (BEC) techniques have successfully lured financial institutions’ employees and customers into giving out confidential information in the past and continue to do so even today. Following are some recent [phishing incidents](https://carnegieendowment.org/specialprojects/protectingfinancialstability/timeline) that have successfully robbed financial institutions by the millions: - **The BetterSure Attack (October 2020):** This attack on the South African home insurance company affected **over 4000 clients**. The malicious actors had used a **phishing email** to compromise an internal BetterSure email. - **The Norfund Attack (May 2020):** This attack on Norway’s state investment fund used BEC to access and monitor the email system of Norfund and **steal over $10 million**. ### What Makes Financial Institutions An Easy Phishing Target? Here are the main reasons why financial institutions are a favorite **phishing target** of malicious actors. ![Phishing definition](https://media.mailhop.org/phishprotection/images/2020/12/phishing-definition-1379.jpg) - **Digital Banking**: Financial institutions continue to embrace [Digital Banking](https://www.meniga.com/resources/digital-transformation-in-banking/), but [cybersecurity awareness](/products/phishing-awareness-training/) hasn’t kept pace with this rapid transformation. While digitally storing and transferring funds offers unmatched convenience and efficiency, it has also significantly increased exposure to cyber threats and security risks. - **The COVID-19 Pandemic**: Besides affecting lives, _the Coronavirus Pandemic has also exposed organizations in every field to increased cyberattacks_. The financial industry is not an exception. The Fidelity National Information Services (FIS) in April reported a [32% rise](https://www.theweek.in/news/biz-tech/2020/08/20/why-its-imperative-for-financial-sector-to-spend-on-cybersecurity.html) in credit and debit card fraud as compared to the same period in the last year. - **Phishing Kits**: _Phishing kits are readily available to launch attacks with a reduced risk of being detected_. They are available as a service and come ingrained with tutorials and community chat rooms for malicious actors to exchange notes, user support, etc. _It has led to phishing replacing malware as the most rampant form of attack in the financial industry_. - **Fake Banking Apps**: A study by the cybersecurity firm ZeroFOX reveals that over [1500 fake mobile banking apps](https://www.darkreading.com/threat-intelligence/financial-phishing-attacks-take-off-malware-declines/d/d-id/1337752) were discovered in 2019\. These fraudulent applications **impersonate legitimate apps**’ interface to steal account details from the unsuspecting users’ devices. ### How Can Financial Institutions Thwart Phishing And Other Cyberattacks? The following are the methods and practices that can help in [phishing protection](/) and other cyberattack mitigation. #### Email Authentication _Some of the most harmful spoofing and BEC attacks use compromised email addresses of internal staff members_ to make other employees give out confidential data. However, an **email authentication system** can ensure the blocking and reporting of such emails from unsolicited senders. [Sender Policy Framework](https://www.autospf.com/) (SPF) is one such email authentication system that restricts all emails from senders or IP addresses not authorized by the financial institution’s DNS record. #### Email Errors Employees [must be trained](/products/phishing-awareness-training/) to look for errors in an email body, such as typos and grammatical mistakes or unusual language and salutations. _They must also prudently assess the pertinence of an email before blindly following its instructions_. Even customers must know that not all email addresses and logos embedded in emails are the dedicated representatives of their bank or insurance provider. #### Efficient IT Management _While large-scale financial establishments claim to spend millions every year on cybersecurity_, other financial institutions don’t even have an IT department! Efficient **cybersecurity management** is a must for the financial industry to ensure regular updates, patch management, protective software, and the right damage-control steps when a cyberattack targets a financial institution. #### Multi-Factor Authentication ![Phishing email prevention](https://media.mailhop.org/phishprotection/images/2020/12/phishing-email-prevention-3911.jpg) _Multi-factor authentication is a useful yet oft-neglected security measure_ that financial institutions and their customers must adopt. It ensures that at least [two password-protection](/content/phishing-prevention/) layers secure their bank accounts, confidential data, and financial assets. #### Cyber Insurance It’s ironic to advise financial institutions to invest in insurance, but _cyber insurance is an indispensable cost that all banking and other financial institutions must bear to avoid losing the trust of their customers_ and long-term financial losses. Cyber insurance enables a banking organization to cope with the expenses of restoration and risk management costs. #### Employee Awareness And Training Despite doing all the above, a lack of cyber awareness will probably make employees fall for the **phishing emails** that make it to their inbox. It is imperative to [train employees](/products/phishing-awareness-training/) in cybersecurity because malicious actors use sophisticated **phishing techniques**. They would possibly go undetected through security shields such as SPF and [anti-spam protection](/products/advanced-threat-defense/); hence _employees must be proactive and vigilant to spot a scam the moment they come across it_. #### Software Customization _The financial institutions make extensive use of MS Office applications_. However, there are [security loopholes](https://www.giac.org/paper/gsec/4323/phishing-banks-timely-analysis-identity-theft-fraud-financial-sector/107044) in them, such as _the ‘mail merge’ feature of MS Word that enables malicious actors to introduce their code in a system and take full control of it_. They can create a fake Word document or spreadsheet and attach it to **phishing emails**. Software customization techniques can instruct such programs to accept only signed files or those from trusted sources. ### Final Words _The financial industry is the backbone of an economy, and hence a cyberattack on it can have unimaginable implications_. Malicious intrusions like phishing can be detrimental to all stakeholders. Therefore, adequate safeguards and mitigation measures such as those mentioned above must be practiced to ensure better [protection from phishing](/) and other cyber risks targeting the financial sector. ## Topics [ Phishing ](/tags/phishing/) ![Brad Slavin](https://media.mailhop.org/phishprotection/images/authors/brad-slavin.jpg) [ Brad Slavin ](/authors/brad-slavin/) General Manager Founder and General Manager of DuoCircle. Product strategy and commercial lead across DuoCircle's 2,000+ customer base. [LinkedIn Profile →](https://www.linkedin.com/in/bradslavin) ## Protect your inbox from phishing attacks Real-time email security with 60-day free trial. No credit card required. [Start Free Trial](https://portal.duocircle.com/cart.php?a=add&pid=101&brand=phishprotection) [View Pricing](/pricing/) ## Related Articles [ Foundational 5m 0ktapus, Okta Breach Helps Attackers Launch Sophisticated Supply Chain Attacks Sep 5, 2022 ](/blog/0ktapus-okta-breach-helps-attackers-launch-sophisticated-supply-chain-attacks/)[ Foundational 4m 13 Spear Phishing Attacks Examples To Justify Investment For Phishing Prevention Solutions In Your Organization Aug 1, 2019 ](/blog/13-spear-phishing-attacks-examples-to-justify-investment-for-phishing-prevention-solutions-in-your-organization/)[ Foundational 4m All 14 centers of Kettering Health were affected by a massive ransomware attack, Major outage in the Ohio medical center May 23, 2025 ](/blog/14-centers-of-kettering-health-were-affected-by-massive-ransomware-attack-in-ohio-medical-center/)[ Foundational 4m 2021 Phishing Trends You Need To Be Wary Of Aug 2, 2021 ](/blog/2021-phishing-trends-to-be-wary-of/) ```json {"@context":"https://schema.org","@type":"Organization","name":"Phish Protection","url":"https://phishprotection.com","logo":{"@type":"ImageObject","url":"https://phishprotection.com/images/phishprotection-logo.png"},"description":"Advanced phishing protection and email security for businesses. 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