Finance Sectors Sufferer Increasing Hybrid Cyber Threats

Uploaded on 2025-08-11 in TECHNOLOGY-Key Areas-Quantum Computing, TECHNOLOGY-Key Areas-Artificial Intelligence, NEWS-Cybersecurity News, FREE TO VIEW

The financial sector faces significantly increasing cyber threats amplified by Artificial Intelligence (AI) and Quantum Computing.

AI is being weaponised for sophisticated attacks like deepfakes and AI-driven malware, while quantum computing aims to render current encryption methods obsolete.

The convergence of cyber and real-world threats has become a growing concern, particularly in the digital asset sector.

Recent reports indicate a troubling rise in incidents where digital vulnerabilities have led to physical consequences, such as abductions and targeted attacks.

Cyber criminals are increasingly employing hybrid tactics, blending digital methods like phishing and malware with physical intimidation.

Other examples include deepfake video calls where attackers impersonated company executives to gain unauthorised access to funds, and phishing attempts that led to the installation of fake browser extensions to compromise digital wallets.

In one notable incident, a cyber attack on ByBit/Safe resulted in the theft of over $3 million after malicious code was injected into the WalletConnect integration. The attack exemplifies how technical vulnerabilities often stem from human manipulation.

The integration of AI and machine learning into both attack strategies and defense mechanisms has further complicated the threat landscape.
While these technologies enhance threat detection and response capabilities, they are also being weaponised by attackers to create more realistic social engineering schemes.

As a result, security strategies must evolve to include stronger verification processes and a culture of skepticism among employees.

For iIndividuals & Organisations, Proactive Measures Are Essential.

Individuals are advised to limit the amount of personal information shared online, especially details related to location, travel, and daily routines. Regularly reviewing privacy settings and verifying the authenticity of unsolicited communications can help mitigate risks.

Organisations, on the other hand, should integrate cyber and physical security strategies, foster employee awareness through training, and implement layered defenses to safeguard both digital and real-world assets.

The incident highlights the urgent need for a unified and proactive approach to security. As attackers continue to exploit the intersection of digital and physical domains, the industry must adapt by fostering a culture of vigilance and shared responsibility.

Collaboration across organisations and continuous education are key to staying ahead of emerging threats.

Existing legal frameworks are evolving to address AI in cybercrime, but quantum threats require new initiatives. International cooperation and harmonized regulations are crucial.

Quantum Key Distribution (QKD) offers theoretical security, but faces practical limitations. Post-Quantum Cryptography (PQC) is a promising alternative, with ongoing standardisation efforts.

Recommendations for international regulators include fostering collaboration and information sharing, establishing global standards, supporting research and development in quantum security, harmonising legal frameworks, promoting crypto-graphic agility, and raising awareness and education.

The financial industry must adopt a proactive and adaptive approach to cyber security, investing in research, developing migration plans for quantum-resistant crypto-graphy, and embracing a multi-faceted, collaborative strategy to build a resilient, quantum-safe, and AI-resilient financial ecosystem.

AInvest | Arxiv | QBE | Sentinel One Enisa | Research Gate

If you like this website and use the comprehensive 8,000-plus service supplier Directory, you can get unrestricted access, including the exclusive in-depth Directors Report series, by signing up for a Premium Subscription.