Cyberattack Impacting UK: Ransomware Surges, Financial Sector at Risk

The extent of cyberattacks impacting the UK financial services sector has been revealed in new data obtained by Picus Security through a Freedom of Information request. The findings show a concerning increase in ransomware incidents during the first half of 2023, raising further worries for the industry. The data acquired from the UK Financial Conduct Authority (FCA) indicates a 10% rise in cyber incident reports compared to the previous year. Of these incidents, nearly a third were categorized as ransomware attacks, indicating the gravity of the situation.
Within the same dataset, there has been a significant increase in the number of reported ransomware incidents in 2023 compared to the same period in 2022, with 19 incidents recorded. A material incident is defined as a cybersecurity breach that results in substantial data loss, impacts a large number of victims, or causes unauthorized access to information systems. This surge in ransomware attacks has raised concerns among industry experts, who view it as a consistent pattern seen in recent years.
Dr. Suleyman Ozarslan, the Co-Founder and VP of PicusLabs, commented on the findings, stating that ransomware continues to be a persistent challenge across all sectors. He emphasizes that ransomware groups emerge, intensify their campaigns, and become targets for law enforcement agencies. However, once crackdowns and arrests occur, new groups step in to fill the void, perpetuating the cycle of ransomware attacks.
The financial services industry has consistently been a prime target for cybercriminals with both political and financial motives. In addition to these factors, the increase in incidents can be attributed to two major vulnerabilities in Microsoft systems that were exploited by hackers. Similar to the Hafnium hacking group’s activities in 2021, these vulnerabilities have played a significant role in the rise of cyber incidents.
Adding to the complexity of the situation is the evolving nature of malware used by adversaries. The Picus Red Report 2023 revealed that modern malware is capable of performing various actions across the cyber-kill chain, making it more difficult for defenses to detect and prevent attacks. With over one-third of malware samples exhibiting more than 20 individual Tactics, Techniques, and Procedures, the challenges faced by the financial services sector are manifold.
The implications of these findings for the financial services sector are concerning. It is crucial for organizations in the industry to prioritize their cybersecurity measures and fortify their defenses against ransomware attacks. As the threat landscape continues to evolve, financial institutions must stay vigilant and invest in robust security frameworks to protect their data and maintain the trust of their customers. Additionally, collaborations between private organizations and government agencies are essential for tackling this growing menace and safeguarding the stability of the industry.