• Ransomware attacks are a growing threat to the financial sector.
• Financial institutions need to take proactive steps to protect their systems and data.
• Regulators are cracking down on cybersecurity compliance.

Fidelity National Financial, one of the nation’s largest title insurance companies, was hit by a suspected ransomware attack last week.

The attack disrupted some of the company’s systems and stole credentials. This is the latest in a series of ransomware attacks targeting financial institutions, which have become a favored target of several high-profile threat groups.

The attack on Fidelity comes amid a backdrop of heightened threat activity targeting the financial services industry.

Fidelity National Financial is down with a cyber/ransomware attack

The economic impact from this is going to be huge

What happens to people who can’t close escrow because of this? Too much stress for me to imagine!

When I read these I wonder: pic.twitter.com/fY9dcSU3JU

— Max Clark (@maxclark) November 28, 2023

In October, the U.S. trading arm of the Industrial and Commercial Bank of China was hit by a suspected ransomware attack that disrupted trading in the U.S. Treasury market.

In January, ransomware attack on the trading firm Ion led to a multiday disruption in the cleared derivatives business. And in October, Mr. Cooper Group, the nation’s third-largest mortgage servicing firm, shut down multiple systems after an outside hacker gained access to some of its computer systems.

The continued threat of cyber disruption places enormous pressures on financial institutions. These institutions handle trillions of dollars each day, they are highly interconnected and rely on a great deal of technology from third-party vendors.

Trustwave’s October report showed that financial institutions are highly vulnerable to malicious cyber activity. Half of all financial services companies reporting a breach were in the U.S., followed by India at only 9%. Russia and Mexico tied for third place with 7% each, Trustwave found.

The financial services sector has become a favored target of several high-profile threat groups, too. About 40% of ransomware incidents against financial services companies were linked to Clop, Trustwave found. However other major threat groups, including LockBit, AlphV/BlackCat, Royal and Black Basta, have also targeted financial services companies.

In July, researchers from Checkmarx disclosed what may be the first known open source supply chain attacks against the financial services sector. The attackers used fake LinkedIn profiles and created customized command and control centers, according to Checkmarx.

The uptick in threat activity comes as regulators have been cracking down on cybersecurity compliance in recent months at the state and federal level.

In November, the NY DFS specifically warned regulated entities to mitigate against the critical CitrixBleed vulnerability, warning about the threat of session hijacking that has been linked to multiple attacks in recent weeks.

The ongoing threat of ransomware attacks highlights the need for financial institutions to take proactive steps to protect their systems and data. This includes implementing strong cybersecurity controls, conducting regular security assessments, and educating employees about cybersecurity risks.

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