Ransomware Attacks on Financial Institutions: A Rising Threat with Multi-Layered Consequences

In 2024, financial institutions around the globe suffered an average loss of $6.08 million due to ransomware attacks. This marked a 10% increase compared to the previous year, signaling a disturbing trend of rising cybercrime targeting the financial sector. The analysis, conducted by security experts from Hunt.io, uncovered not only the staggering financial damage but also a new and alarming shift in cybercriminal tactics—one that has continued into 2025.

The Evolving Tactics: Double Extortion and DDoS Attacks

According to Hunt.io findings, ransomware operators are no longer just encrypting data and demanding ransom. A dangerous new trend is emerging: the use of double extortion techniques. In these attacks, hackers first encrypt sensitive data and then demand payment for its decryption. However, the cybercriminals take it a step further—they also steal the data and threaten to release it publicly or sell it if the ransom isn’t paid. This adds an extra layer of pressure on the victim, knowing that sensitive financial data could be exposed or exploited.

But that’s not all. The latest development observed in 2025 involves the added use of Distributed Denial-of-Service (DDoS) attacks. These attacks overwhelm the victim’s network with a flood of traffic, causing disruptions that make it even harder for the institution to operate or recover. By combining ransomware with DDoS attacks, hackers are applying significant pressure, pushing financial institutions to pay the ransom more quickly to minimize further damage and operational downtime.

Beyond the Attack: The Ripple Effect on Financial Institutions

The immediate impact of double extortion and DDoS attacks is devastating, but the damage doesn’t end there. Once a financial institution is compromised, the repercussions ripple across multiple layers of the business. First, there’s the incident response, which involves identifying, containing, and mitigating the breach. This process is often both time-consuming and costly, requiring specialized resources to ensure the attackers don’t retain access to the system.

Then, there’s the issue of regulatory compliance violations. Financial institutions are subject to strict regulatory requirements to protect customer data and financial transactions. A breach often leads to non-compliance with these regulations, resulting in potential fines and legal repercussions. Furthermore, organizations face the enormous challenge of disaster recovery, which involves restoring compromised systems and data to a functional state. This often requires a complete overhaul of security infrastructure, further increasing costs and time spent on recovery.

How Do These Malware Attacks Reach Banks?

So, how are these sophisticated attacks getting past the defenses of financial institutions? A major vector for ransomware infections is phishing—a method where hackers deceive employees into clicking malicious links or opening infected attachments, such as transaction-related PDF files. Once opened, these files can deploy malware across the network, granting attackers control over sensitive systems.

Phishing attacks often rely on exploiting human error, which makes them highly effective. Even with advanced cybersecurity systems in place, a single employee’s mistake can lead to widespread infection, affecting the entire network and compromising critical financial data.

Why Are Financial Institutions Such Prime Targets for Hackers?

The motivation behind these attacks is clear: data. For financial institutions, data is their most valuable asset. Customer information, transaction records, and proprietary financial data are crucial to their operations, and losing this information can have catastrophic effects. Unlike other sectors, where data can be backed up or replicated, the financial industry has less flexibility in the event of a breach.

Additionally, the financial sector is often seen as a “soft target” by cybercriminals. Despite the substantial investment in cybersecurity, the consequences of an attack—such as public trust erosion, loss of revenue, and legal liability—are significant enough to make these organizations prime targets. The attackers know that the chances of recovery after a breach are slim, which means their campaigns have a higher likelihood of success. Furthermore, financial institutions are often more likely to comply with ransom demands due to the urgency of the situation, making them a more attractive target.

In conclusion, the financial sector remains under constant threat from sophisticated ransomware attacks. As cybercriminals adapt and refine their methods—using double extortion, DDoS attacks, and other tactics—financial institutions must invest in more robust cybersecurity measures and proactive threat detection strategies. Without them, the risk of significant financial and reputational damage only continues to rise.