Top Cybersecurity Trends in Finance and Accounting for 2025

Did you know that financial firms are facing frequent targeted cyberattacks? According to the WEF Global Cybersecurity 2024 report, 72% of respondents reported a surge in cyber risks over the past year. In particular, most of these involved cyber-enabled fraud, phishing, social engineering, and identity theft.

Compared to other sectors, finance faces the tightest breach notification windows and the highest expectations for data integrity. A single corrupted transaction record might result in costly regulatory fines and loss of customer trust, which can take years to rebuild. 

Amid growing challenges, understanding key cybersecurity trends is important to know where finance is headed in cyber defence and to protect customers and data.

In this article, we will talk about the top data security trends in accounting and financial services for 2025 and outline how firms can protect both their digital assets and stakeholders.

Why Cybersecurity in Finance Demands a New Playbook in 2025

Cloud computing, AI, and digital identity are now core to financial operations. A joint McKinsey–IIF survey found that 84% of financial institutions report cloud computing as critical to their business. However, these technologies also widen the threat surface for many companies. 

Due to poorly secured cloud ingress ports and API vulnerabilities, cloud systems are the third most-targeted cyber environment. Additionally, many firms struggle to fully comply with evolving regulations, such as DORA, PCI DSS, or GDPR, which require continuous monitoring and reporting.

This disconnect between rapid tech adoption and lagging cybersecurity maturity leaves financial institutions exposed to cyber threats. The sector now needs stronger third-party vendor risk management, privileged access controls, and embedded security across development pipelines, not just perimeter defence.

“Against a backdrop of growing cyberthreats and expanding attack surfaces, network defenders are drowning in the operational complexity of a legacy security mindset. They struggle to stitch together dozens of disparate security solutions and enforce security policies across an enterprise’s network, cloud, and endpoint environments. As a result, people, our most precious cyber resource, are left manually triaging alerts from increasingly automated attacks. To stay ahead of adversaries, we need to reimagine cybersecurity operations, leverage the power of AI, and deprive attackers of any technological advantage”. Nikesh Arora Chairman and Chief Executive Officer, Palo Alto Networks

Source

7 Recent Cybersecurity Trends in Financial Services for 2025 

To keep up with the changing risks, financial institutions need to pay attention to these seven important cybersecurity trends. Let’s talk about them in detail:

1. Rise in AI-powered fraud detection

Modern fraud techniques, such as bots and social engineering, strike quickly, leaving little time for financial institutions to detect and respond. Hence, finance companies are switching to AI-powered fraud detection. The main reason behind this is that AI can analyse vast datasets and detect subtle anomalies, providing speed and accuracy compared to traditional methods. 

Additionally, AI-powered machine learning models trained on historical data can automatically detect patterns, such as unusual spending behaviour and transaction velocities, and block potentially fraudulent transactions before they are processed.

In fact, 66% of industry professionals believe these technologies will significantly impact cybersecurity within the next 12 months. 

On the other hand, fraudsters are developing increasingly sophisticated techniques designed to bypass AI systems, such as adversarial attacks that manipulate data inputs to evade detection. Moreover, reliance on AI models can lead to blind spots if these models are not continuously updated to reflect evolving fraud patterns.

2. Surge in ransomware incidents affecting payment systems

When businesses were asked about cyber threats, nearly 45% of organisations cited ransomware as their top concern. In the financial services sector, ransomware is increasingly targeting payment systems and core infrastructure, which aims to disrupt transactions and demand substantial ransoms.

Attackers are typically targeting payment systems, SWIFT gateways, treasury operations, and core accounting infrastructure systems, which are critical to business continuity.

Modern attackers are deploying double-extortion tactics, encrypting files, and threatening to leak data unless payment is made. Moreover, Ransomware-as-a-Service (RaaS) programs further lower the barrier for attacks, enabling affiliates to strike even mid-sized banks and accounting firms. 

To counter this escalating threat, financial institutions are prioritising resilience strategies such as segmented network architectures, immutable backups that cannot be tampered with, and rapid incident response playbooks.

3. The Growing Threat of API Exploits in Embedded Financial Services

Another key cybersecurity trend is the rapid expansion of the embedded finance market, projected to reach $251.5 billion by 2029. Embedded finance powers services like Buy Now, Pay Later (BNPL), instant loans, and integrated payment solutions by connecting core financial systems such as KYC verification and credit risk engines with external platforms, including e-commerce sites, B2B SaaS, and digital wallets.

However, this growing connectivity has also introduced significant security challenges. Financial services ranked among the top three industries targeted by API-based attacks. Attackers exploit vulnerabilities like broken object-level authorisation (BOLA), exposed authentication tokens, and improper input validation to manipulate accounts or steal sensitive data.

For example, weak rate limiting on transactional APIs enables brute-force or account enumeration attacks, while misconfigured identity tokens can expose user sessions across popular financial super-apps. This makes API security a critical focus area for financial institutions embracing embedded finance

4. Deepfake Voice Scams Exploit Finance Teams

Another key cybersecurity trend is using Deepfake voice scams. Financial institutions and accounting departments have become high-value targets for deepfake-driven Business Email Compromise (BEC). These attacks now involve AI-generated audio and video, impersonating CFOs, CEOs, or senior finance leaders to authorize fraudulent fund transfers or payment approvals.

Deepfake incidents targeting finance teams, C-suites, and consumers have grown sharply. One of the biggest recent cases is a global firm that lost $25 million after attackers used a fake video conference with an AI-generated CFO to authorize a fund transfer.

Hence, BEC scams are no longer about grammar errors or suspicious domains; they now use synthetic identities and realistic voice cloning to bypass verbal confirmations in traditional financial workflows.

Numerous experts predict that the future of deep fake threats is hyper-scalable, real-time, and low-cost, making synthetic fraud a dominant vector in financial cyberattacks by 2026. Without advanced detection and coordinated defenses, financial institutions risk being overwhelmed by AI-driven impersonation at scale.

5. Increasing Regulatory Pressure from SEC and DORA

Despite increasing regulatory demands, many financial firms struggle to fully address cybersecurity compliance due to complex factors. Increasingly stringent regulations from the SEC and DORA are reshaping cybersecurity expectations for financial institutions. The SEC’s new incident disclosure rules require firms to report not only the financial impact of breaches but also operational disruptions and reputational harm, raising the bar for transparency and accountability. Early disclosures reveal that many companies struggle to meet these qualitative and quantitative standards, exposing risks in governance and incident management.

Similarly, the EU’s DORA regulation requires financial entities to enhance operational resilience, with a focus on third-party risk management, continuous testing, and timely incident reporting. In the U.S., regulators like the New York Department of Financial Services require CEOs and CISOs to certify compliance annually and hold boards accountable for cybersecurity oversight, signaling that governance failures may lead to severe penalties.

6. Early adoption of quantum-resistant encryption

The next major trend in financial cybersecurity is the early adoption of quantum-resistant encryption. Traditional algorithms like RSA and ECC are increasingly vulnerable to future quantum computers, creating a “store now, decrypt later” risk where sensitive financial data captured today can be decrypted tomorrow. Given the long retention periods and strict confidentiality requirements in finance, this threat demands urgent attention.

Financial institutions are slowly beginning to implement quantum-safe cryptography, such as lattice-based schemes, hash-based signatures, and quantum key distribution (QKD) to future-proof their systems. Early adoption allows for smoother integration into complex legacy infrastructures, avoiding costly retrofits once quantum attacks become practical.

Regulators and industry groups are also spotlighting quantum readiness in their cybersecurity frameworks, making it a key compliance and risk management focus. Firms leading this shift can enhance transaction security and safeguard client trust amid rapid fintech growth and real-time payments innovation.

7. Outsourcing Cybersecurity to Tackle Talent Gaps and Compliance Pressure

The need for robust cybersecurity in financial services in 2025 is being driven by two key factors: a widening cybersecurity talent gap and growing regulatory obligations. As ransomware, API-based intrusions, and deepfake fraud intensify, many financial firms struggle to maintain 24/7 protection or comply with new mandates, such as DORA and the SEC’s cyber disclosure rules. In this evolving threat landscape, internal teams alone cannot keep up with cyber threats to the finance industry.

How outsourcing solves it:

To bridge these gaps, financial institutions are increasingly turning to Managed Security Service Providers (MSSPs) and cybersecurity consultancies. These partners offer:

• Round-the-clock monitoring and incident response, critical for real-time risk mitigation
  
• Expertise in regulatory compliance, reducing legal exposure, and audit fatigue
  
• Access to advanced detection tools (e.g., MDR, SIEM, SOAR) that would be costly to build internally
• Scalable support across hybrid IT environments, from cloud infrastructure to API endpoints

Case Studies Highlighting Cybersecurity Trends in Finance

Breaches involving financial data not only compromise individuals’ sensitive information but also cause long-lasting damage to companies through regulatory fines, loss of customer trust, and costly remediation efforts.

‍

5 Best Practices for Protecting Financial Data

Protecting financial data demands both robust technical controls and a structured risk management framework. The following best practices are essential pillars of a resilient cybersecurity strategy:

1. Choose Cloud Providers Built for Financial Data Security

Financial data demands more than standard cloud security. When selecting a provider, prioritize those offering advanced identity management features like role-based and conditional access tailored for finance teams.

Look for customer-managed encryption keys, giving you direct control over how sensitive financial information is protected. Detailed audit logs should track every access and transaction, supporting compliance with regulations such as GLBA, SOX, and PCI DSS. Real-time threat detection using AI and machine learning can identify unusual patterns specific to financial workflows, allowing faster incident response. 

Data residency is crucial; ensure your provider offers options to store data within compliant jurisdictions and isolates financial data properly in multi-tenant environments. Finally, robust disaster recovery and high-availability guarantees minimize downtime and data loss risks, critical for financial operations that require constant uptime and integrity.

2. Enforce Encryption & Key Lifecycle Management 

Encryption is fundamental to safeguarding sensitive financial data whether stored, transmitted, or processed. Use AES-256 for data at rest and TLS 1.3 or higher for data in transit, ensuring robust cryptographic standards that resist modern attack vectors. 

For data in use (such as processing in memory or during computation), consider emerging techniques like homomorphic encryption or secure enclaves to minimize exposure.

Implement Hardware Security Modules (HSMs) or cloud-based Key Management Services (KMS) that allow secure generation, storage, and usage of cryptographic keys under strict access policies. 

Automate key rotation on defined schedules to limit key exposure time and incorporate immediate key revocation mechanisms to respond quickly to potential compromises.

Along with this, strong separation of duties in key management processes, along with comprehensive auditing and logging, is essential to maintain compliance with regulations like GLBA, PCI DSS, and SOX.

3. Apply Least Privilege with Continuous Access Governance

Granting users and systems only the minimum permissions necessary is fundamental to reducing risk in financial environments. Implement role-based access controls (RBAC) and segment privileges carefully to prevent unnecessary exposure of sensitive data. 

Use Privileged Access Management (PAM) tools to closely monitor, control, and audit superuser activities since unchecked privileged accounts are prime targets for misuse or compromise.

But it doesn’t stop there. Regularly conducting access reviews is essential to identify and remove stale or unnecessary accounts that can become hidden vulnerabilities. Continuous governance of access rights not only tightens security but also helps address insider threats—a growing concern in today’s accounting and finance sectors where sensitive data is constantly in motion.

4. Continuous Monitoring, SIEM, and Log Optimisation

Keeping a close eye on who accesses sensitive financial data and exactly when is not just good practice; it’s essential for catching problems before they escalate and staying on the right side of regulators. That means setting up detailed audit logs that record every access who, when, from where, and what they did. These logs need to be tamper-proof and stored securely so they can stand up to investigations if needed.

But logs alone aren’t enough. Pair regular security audits with smart, automated monitoring tools like SIEM and UEBA. These tools don’t just collect data—they learn normal behavior patterns and alert you instantly if something looks off, like an unusual login time or unexpected data transfers. This mix of human vigilance and technology helps you catch issues early, respond quickly, and keep your financial data and your reputation safe.

5. Educate Employees Continuously

Despite advances in technology, human error remains the single largest vulnerability in financial cybersecurity. Whether it’s falling for a sophisticated phishing scam or mishandling sensitive data, mistakes by well-meaning employees can quickly escalate into costly breaches. That’s why fostering a security-first culture is more important than ever.

Effective employee training i’s about ingraining security awareness into daily behaviors and decision-making. This means regular, role-specific education that evolves alongside emerging threats, practical simulations like phishing tests, and clear communication channels where employees feel empowered to report suspicious activity without fear.

Conclusion

As 2025 unfolds, the cybersecurity trends reshaping finance and accounting are impossible to ignore from the rise of AI-driven fraud and deepfake scams to increasing pressure from regulators worldwide. These aren’t just headlines; they’re daily challenges. 

Keeping pace means more than just updating firewalls or holding annual training. It means staying alert to what’s changing whether that’s new compliance rules, smarter phishing tactics, or risks hidden in third-party software.

For many financial teams, the most practical path forward is partnering with cybersecurity specialists or outsourcing providers who bring focused expertise, scalable tools, and fresh perspective. That way, you’re not just reacting to problems, you’re staying ready for what’s next.

The firms that thrive will be the ones that treat cybersecurity as a long-term priority.

FAQs

1. Why do cybercriminals increasingly target the financial sector?

The financial sector holds vast volumes of sensitive data and manages large monetary transactions, making it a prime target. Attackers aim to steal customer data, disrupt operations, or extort institutions via ransomware. As digital transformation accelerates, threat actors are exploiting vulnerabilities in legacy systems, APIs, and third-party integrations.

2. What are the top cybersecurity threats facing finance and accounting firms in 2025?

Key threats include ransomware attacks on payment systems, phishing targeting CFOs and controllers, API and fintech app vulnerabilities, insider threats, and supply chain breaches. Cloud misconfigurations and AI-driven fraud are also rising rapidly.

3. How can finance teams mitigate the risk of third-party vendor breaches?

Regular vendor risk assessments, robust contractual clauses around data security, continuous monitoring, and enforcing compliance with standards like SOC 2 and ISO 27001 are crucial. Zero trust frameworks and automated risk-scoring tools are increasingly used.

4. What cybersecurity regulations apply to financial institutions globally?

Depending on jurisdiction, institutions must comply with GLBA (USA), PSD2 (EU), GDPR, PCI DSS, DORA (EU), and local central bank directives. Regulations typically require data encryption, incident response protocols, and breach disclosures within tight deadlines.

5. Are AI and automation helping or complicating financial cybersecurity?

Both. AI enhances threat detection, fraud prevention, and compliance monitoring, but it also introduces new attack surfaces. Financial firms must balance innovation with strict model governance, explainability, and AI system security.