FinTech

DNS Attack on Financial Institution Upped by 40% 

The average cost to financial services organisations of restoring services after a Domain Name Service Attack has risen by 40% to an eye-watering $1.3 million, according to new research.

EfficientIP’s 2019 Global DNS Threat Report found that 88% of respondents from the banking sector experienced under-the-radar, yet devastating, DNS attacks in the past year.

Hackers hijack domain names for phishing exploits to send victims to copycat Web sites or to disrupt access to applications and Web sites, often demanding a ransom for the restoration of services.

The report, which surveyed 130 senior technology professionals, including CIOs, CISOs and IT managers, found financial services organisations experienced an average of ten attacks a year, a 37% increase from last year. Fully 47% of financial organisations were targeted by DNS-based phishing scams, 45% suffered cloud service downtime and 68% experienced in-house application downtime.

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David Williamson, EfficientIP’s CEO, says: “Financial services organisations have always been the gate-keepers of customers’ money, providing vital services people expect to be able to use all day and night. With so much at stake, the networks of financial services organisations are a predictable, prime target for DNS attacks.”

Many high-profile breaches and publicized security issues in enterprises have been widely exposed in recent years, demonstrating that traditional security products are no longer adequate and will not provide business continuity or data protection in a rapidly changing environment. The IT security threat landscape is continually evolving. Digital transformation is being driven by the fast adoption of cloud services, and there are major changes linked to the regulatory upheaval we have seen with the enforcement of GDPR, among other privacy initiatives. DNS is a primary target for cyberattacks, causing business damage in terms of downtime and financial loss, as it remains one of the critical elements in delivering IT services.

For its fifth year of publication, this report looks at the technical and behavioral causes for the rise in DNS threats, the state of defenses and essential guidance. Analysis of this Infobrief is based on a survey IDC conducted on behalf of EfficientIP of 904 organizations across the world during the first half of 2019.