The word itself triggers an alert mindset: cybersecurity. Today, it has become one of the most pressing concerns for financial institutions. From identity theft to ransomware attacks, there are many risks we need to understand in order to protect consumer and user data.

Cybersecurity is crucial in digital banking, where personal information and data are constantly at risk of being hacked. It is a global phenomenon: according to a Truecaller study, in the United States during 2022, $40 billion were lost due to phishing. In Latin America, 110 such attacks were recorded every minute, according to Kaspersky data published last year.

What can be done to prevent this scenario? The first step is to identify the most common cyberattacks in the region.

‍

The 3 main cybersecurity threats in Latam

Cyber threats facing the financial industry in Latin America are similar to those encountered globally. Some of the most common include:

Phishing:

Phishing attacks remain a major threat to the financial sector in Latin America, as attackers use social engineering tactics to trick people into revealing confidential information such as passwords and credit card numbers, which are then used to commit fraud or steal money.

Phishing can appear as fake emails, text messages, fraudulent websites or online forms that resemble legitimate financial institutions, requesting confidential information. A telltale sign: these messages often have suspicious addresses or spelling mistakes 👀.

Malware:

Malware is also a major threat in Latin America. Attackers use various techniques to infect systems and steal sensitive data, with financial institutions being particularly attractive targets for cybercriminals.

There are several types of malware — malicious programs that can spread through emails, software downloads, compromised websites, and infected devices. If you've ever downloaded an online extension to easily convert a PDF to Word, you might have unknowingly triggered a cyberattack 🤯. As the saying goes, cheap can be costly. Once installed, malware can collect sensitive information, such as passwords and credit card numbers, and send them to hackers.

Ransomware:

This is the most common type of malware. It encrypts a system’s data and demands a ransom for decryption. It’s a serious threat for financial institutions, as they risk losing access to critical and sensitive information.

Attackers can install ransomware via phishing emails, software downloads, compromised websites, and other methods. Once installed, it can spread across a financial institution’s network, affecting multiple systems and devices.

‍

How to prevent them

Financial institutions in Latin America must take steps to protect their clients against these cyber threats, including raising awareness, implementing strong authentication measures, and using advanced security technologies to detect and prevent attacks.

This includes maintaining regular and separate backups, using up-to-date security software, having a contingency plan with clear protocols in case of ransomware attacks, and constantly monitoring networks for suspicious activity.

It’s also important for clients to take precautions, such as not sharing confidential information via unsolicited emails or texts, verifying the legitimacy of such messages, and keeping security software updated on all devices.

Lastly, choosing secure providers is essential for financial institutions. Working with providers that follow high security standards is key in the world of open finance and digital banking. You can check a list of cybersecurity requirements to consider when selecting a provider in our article 'Open Banking: how to recognize a secure fintech for your financial institution.

‍

How we do it at Floid

Open Finance has transformed the way people manage their finances and access financial services — a shift already underway in Latin America. That’s why at Floid, we recognize that cybersecurity has become a critical challenge in the financial industry.

From the beginning, we’ve followed European regulations, anticipating the legislation being developed in Latin America. We conduct regular Ethical Hacking tests (as required by major banks), became the first Open Finance company certified with ISO 27001, and established agreements with banks to ensure our connections are official.

With our technology, your customers can share their financial data knowing it is secure and protected.