Why Financial Organizations are a Target for Cyber Attacks: The Need for AI and ML in Cybersecurity

Financial organizations have always been attractive targets for cybercriminals.
The reason is simple: that’s where the money is. However, as these organizations have bolstered their defenses, attackers have also evolved their tactics.

Today, the battleground has shifted from merely preventing malicious code to leveraging advanced technologies like Artificial Intelligence (AI) and Machine Learning (ML) for proactive defense.

The Evolution of Cyber Attacks
In the past, cyber protection was primarily about preventing malicious code from infiltrating the organization’s systems. This was often achieved through firewalls, antivirus software, and secure coding practices.
However, the landscape of cyber threats has significantly evolved. Today, attackers employ sophisticated methods, often targeting the very software development process itself.

Consider this scenario
: an attacker manages to infiltrate an organization and inserts a malicious code into the system. This code is designed to siphon off a tiny amount - say, one cent - from every money transfer transaction.
This method, known as salami slicing, can accumulate substantial sums over time while remaining undetected due to the negligible amount involved in each transaction.

The Role of AI and ML in Cybersecurity
To counter such threats, financial organizations need to move beyond traditional defense mechanisms. This is where AI and ML come into play. These technologies can analyze vast amounts of data, identify patterns, and make predictions, all in real-time.

In our example, an AI system could be trained to recognize normal transaction patterns within the organization. If it starts noticing a large number of small transfers to a single account, it could flag this as suspicious activity. This is because, under normal circumstances, it would not make sense for a large number of small transactions to be directed to one account.

Conclusion
The use of AI and ML in cybersecurity represents a paradigm shift from reactive to proactive defense. By learning to predict and identify potential threats before they cause harm, these technologies can provide a robust defense mechanism for financial organizations against evolving cyber threats. As the saying goes, “Prevention is better than cure.” In the context of cybersecurity, prevention is not just about blocking malicious code but about staying one step ahead of the attackers. And with AI and ML, financial organizations are better equipped to do just that.