The financial sector endured a challenging 2023 for third-party related breach incidents. It is of course an attractive target for cyber criminals. There is the potential for immediate financial gain but also a wealth of sensitive customer information.

The Kroll 2023 Data Breach Outlook report analyses thousands of third-party related breach incidents. It also analyses the industries that were the most breached. For example, professional services move up from fifth most targeted industry to third in 2023. Specifically, data breaches in the professional services sector increased from 3% in 2022 to 12% in 2023. This could be due to the steady rise in BEC cases particularly affecting this industry. Kroll notes there is a high concentration of this activity related to legal firms from the BLACKCAT ransomware gang.

Elsewhere in financial services, breaches in the insurance sector fell sharply. Insurance has dropped from a top five sector in 2021 to 10th in 2023. Moreover, there is an 81% drop in breaches y-o-y when compared to 2022.

Assessing theft trends and how victims are targeted, one method in particular continues to be the most common. That is new credit card fraud. Utilities fraud and new cell phones fraud were also trending in 2023.

Kroll 2023 Data Breach Outlook report: findings include

  • 53% of enquiries coming from consumers in 2023 following being notified of a breach were related to the technology industry; only 12% were in the finance industry
  • Of all the credit and identity monitoring taken up by consumers, 68% were involved in technology breaches, compared to only 13% in healthcare and 10% in finance;
  • Technology saw a 47,264% y-o-y increase in the number of calls following a breach, whereas finance saw a drop of 53%;
  • Technology also saw a 31,219% y-o-y increase in the amount of identity monitoring taken up, compared to a drop of 55% in the finance sector, and
  • Healthcare also showed y-o-y increases in both the number of enquiries following a breach (14%) and in the amount of credit or identity monitoring taken up (99%).

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By GlobalData