2025 State of Financial Services: Hidden Dangers in the Vendor Ecosystem

Introduction

The greatest threat to your financial organization isn't coming through the front door.

The financial services sector is widely protected by stringent regulations, government takedowns of the bad actors who target them, and robust defenses against direct cyberattacks and breaches.

These companies generally have Chief Information and Security Officers in place keeping a watchful eye on their systems and processes.
The largest ransomware groups that favored financial services organizations in their attack campaigns have been dismantled by government agencies.
And we have seen a dramatic decrease in ransomware attacks on financial companies as a result over the last two years.

But this perceived safety creates a dangerous blind spot. The true, and often overlooked, vulnerability lies within the extensive network of third-party vendors that serve the financial services sector.

We analyzed a sample set of vendors with 10% or more clients in the finance industry (amounting to 140 vendor companies). Among these vendors, a multitude of weaknesses exist that pose a considerable risk to financial institutions, potentially impacting their operations and security. While banks and financial institutions themselves may possess strong defenses, the companies providing services to them often lack the same level of security. If these vendors are compromised, attackers can gain indirect access to the financial institutions they serve.

This report explores the shifting landscape of cyber threats in the financial sector, highlighting the critical importance of understanding and mitigating the hidden dangers within the vendor ecosystem.

Key Takeaways: Financial Industry Cybersecurity

Declining Direct Ransomware Attacks

Direct ransomware attacks on the financial sector have decreased significantly due to strong defenses and the disruption of major threat groups.

Shifting Attack Focus

Attackers are increasingly exploiting weaker links within the financial ecosystem, primarily through third-party vendors.

Pervasive Vendor Vulnerabilities

A significant number of vendors serving the financial sector exhibit critical security weaknesses, including outdated systems, poor patch management, and credential exposures.

Supply Chain Impact

Vulnerabilities in vendors can lead to direct security risks for financial companies relying on them, even from non-cyber events like service outages.

False Sense of Security

Financial institutions may have a false sense of security due to their own robust defenses, overlooking the substantial risk posed by their supply chain.