Cybersecurity In Finance: A Review Of Threats, Trends And Risk Mitigation Strategies

Abstract

The financial sector has become a primary target for cybercriminals due to its digital transformation and the sensitive nature of the data it handles. This review paper provides a comprehensive analysis of the evolving cybersecurity landscape in finance, focusing on prevalent threats such as phishing, ransomware, insider attacks, and emerging risks like AI-generated scams and deepfake-enabled fraud. It also explores recent trends including cloud-based security solutions, AI/ML in threat detection, zero trust architectures, and regulatory compliance frameworks like GDPR and RBI cybersecurity guidelines. Furthermore, the paper evaluates practical risk mitigation strategies such as multi-factor authentication, incident response planning, and vendor risk management. Through real-world case studies—such as the Capital One data breach and Bangladesh Bank heist-it highlights common vulnerabilities and lessons learned. The review identifies critical research gaps in areas like quantum-safe cryptography, behavioral cybersecurity, and cross-border cooperation. The findings underscore the need for a layered cybersecurity approach that integrates technology, policy, training, and collaboration. As financial systems grow increasingly interconnected, proactive defense and ongoing research are essential to ensuring resilience and trust in the global financial infrastructure.