Cyberattacks against the financial industry are on the rise. Statista reported that unauthorized access to financial data increased nearly 300% between 2022 and 2023. In this newly threatening environment, individuals and organizations must do what they can to protect their sensitive financial data. AI poses great opportunities for people and companies to implement robust systems to minimize the success and long-term effects of attacks. 

Modern Threats to Financial Data Security 

Although cybercrime has been an issue for decades, malicious actors are improving their approaches. Common threats to cybersecurity for individuals and businesses include: 

• Social Engineering: Malicious emails and text messages designed to build trust and get people to provide sensitive data, such as login credentials 

• Weak Encryption: Insufficient encryption of stored data, which means that hackers who gain entry will be able to access it 

• Poor Security System Design: Systems designed without security in mind, which increases the likelihood of a data compromise 

• Malware: The installation of malicious hardware that will scrape sensitive data or shut down the system in demand of payment 

• Hacking: Gaining unauthorized access to the system or causing the system to shut down 

At this point, a human-centered approach to security is unlikely to yield sufficient protection for sensitive financial data. 

AI’s Capacity for Protecting Financial Information 

If the future of financial crime is technical, the solution must follow suit. With a comprehensive system of tools at its disposal, AI can help organizations avoid many of the most common threats to financial data security. 

Reduce the Impact of Social Engineering 

Even experienced employees and consumers can sometimes fall victim to social engineering. Many phishing emails and texts are difficult to distinguish from legitimate communications. AI can detect the sending of these emails and prevent them from reaching the target. This pause gives organizations time to evaluate the message for accuracy and malicious intent, preventing the user from accidentally providing sensitive information. 

Maintain Encryption at All Times 

Maintaining encryption of financial data is critical to the security of that information. Unfortunately, many systems rely on weak encryption or create pathways to get past the encryption during updates or security system checks. AI can evaluate the level of encryption and recommend improvements to systems to maintain a higher level of security. It can also maintain consistent encryption for crucial organizational financial systems, such as ESG reporting tools. 

Find Weaknesses in Security Systems 

Humans must test a system for weaknesses, but they cannot complete a comprehensive check at the level of technology. As a comparison, AI provides a thorough inspection of all aspects of the system, identifying weaknesses and possible entry points for malicious actors. The AI can take this information and manufacture system updates or upgrades that will resolve issues, backed by information about the security of the existing data. 

Shut Down Unauthorized Access 

At times, hackers will gain unauthorized access to the system. The ability to minimize or prevent access is the work of seconds, not hours. AI can identify unauthorized entry within moments and immediately shut down the account’s access to the system. This prompt action provides system administrators with the crucial time they need to evaluate the threat and take additional security measures. 

Implement Robust Alert Systems 

Although AI can provide much of the background security and support for the system, human oversight is still an important component. As part of an AI-run security system, administrators can receive updated alerts about the function of the system, including possible threats to look at and issues that need immediate attention. A robust, tiered system of alerts ensures that administrators receive critical information promptly without clogging up their inboxes with irrelevant reports. 

Predict Potential Threats 

The harnessing of Big Data allows AI to maximize benefits to consumers and organizations. AI can evaluate massive amounts of data concerning encryption, security, unauthorized access and malicious entry. With this information, AI can highlight potential threats to an individual system. This predictive analysis can give administrators the time they need to test and upgrade the system, preventing future compromises. 

For many people and businesses, AI represents the next step in financial data security. By implementing AI into financial security systems, organizations can identify weaknesses, minimize threats and create better security to survive cyberattacks.