Updated June 2025
The finance industry frequently finds itself in the crosshairs of cybercriminals, with expensive consequences. In fact, in 2022, Cybersecurity Ventures forecasted cybercrime to cost $10.5 trillion annually by 2025. That’s a 15% increase year over year! And according to the latest IBM and Ponemon Institute report, the average cost of a data breach in the financial sector has risen to $6.08 million.
So, while the financial toll of a cyberattack is significant, it’s just one of several compelling reasons why cybersecurity is a top priority in finance. If you’re building the case for hiring a cybersecurity expert, we’ve got you covered! Here are the top reasons why cybersecurity is critical in finance.
1. Safeguarding Sensitive Financial Data
Financial institutions regularly handle sensitive financial data that, if leaked to the public, could put many customers at risk of fraud. Even if the financial information is encrypted and protected, your company can still be a target for that sensitive data.
Hackers are constantly searching for vulnerabilities— regardless of how secure your systems may seem. Because of this, a strong cybersecurity strategy ensures you’re prepared to detect, defend, and respond effectively and efficiently.
2. Complying with regulatory Requirements
Since financial institutions are prime targets for cyberattacks due to the vast amounts of sensitive data they manage, regulators (like the Federal Trade Commission or Securities and Exchange Commission) have implemented strict rules governing not just what data institutions can retain, but also:
- How it must be protected
- How long it can be stored
- Who is permitted to access it
These regulations are specifically designed to reduce the risk of data breaches and ensure accountability. Failing to comply with these requirements can result in significant financial penalties and reputational damage.
3. Reputation Management
In an industry built on trust, establishing and maintaining a reputation as a reliable, responsible institution is essential—especially when customers are entrusting you with their most sensitive information. By demonstrating a commitment to cybersecurity, you not only protect your customers’ data and assets but also reinforce your credibility. In fact, a solid reputation for safeguarding information can be considered as an advantage against competitors in the industry.
Trust doesn’t just retain customers—it grows your business. If loyal customers are referring friends and family, they’re also likely to leave positive reviews when their trust is rewarded with thoughtful care and strong data protection. In marketing, this is known as the flywheel effect: satisfied customers become advocates, boosting your Net Promoter Score (NPS) and reducing detractors. A strong cybersecurity posture plays a key role in keeping that flywheel turning.
4. Protecting Your Organization from Insider Threats
Insider attacks are often relatively easy to initiate, especially when multiple people have access to sensitive areas of your network. But with a strong cybersecurity system in place, you can protect your assets with measures like zero-trust security systems and limited access policies that only allow necessary personnel, like project managers, have access it.
You can also safeguard your company from insider attacks by canceling access privileges as soon as someone’s employment terminates. By taking action right away, you minimize the opportunity for internal incidents to happen.
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5. Maintaining Continuous Operations
While it’s difficult to calculate the exact cost of downtime, it’s no secret that your business can incur some major financial losses when you’re unable to continue operating as normal. And while downtime can stem from multiple factors, the most common cause is cyberattacks.
Once an attack starts, the clock starts ticking. Regardless of what your infrastructure looks like, there’s a dollar amount associated with every second. To reduce expenses associated with cybercrime, establishing a proactive stance on cybersecurity is critical. But on top of that, by maintaining continuous operations, you also reinforce stakeholder trust.
6. Safeguarding Intellectual Property
It’s not just customer data that’s on cybercriminals’ wish lists. Your intellectual property entices them as well. Why? It may be worth money. Cyber espionage, which involves stealing and then selling corporate secrets, can provide a healthy source of income for opportunistic hackers.
For instance, you may plan on releasing a new product designed to empower customers with financial knowledge. Your competition may be more than open to giving an attacker a handsome paycheck so they can start developing a similar solution before you release yours. But by protecting your intellectual property with firewalls, encryption, and least-privileged access protocols, you can thwart cyber spies.
Cybersecurity in Finance
The advantages of establishing strong cybersecurity within the finance industry are endless. For many organizations, however, it can be hard to figure out where to find the cybersecurity talent to address vulnerabilities, educate employees, and prevent breaches. But you can grow your cybersecurity forces with Insight Global!
We know exactly what cybersecurity professionals need to know and the skillsets required to protect your organization from greedy criminals. See how we can partner by reaching out today.
by Julia Koslowsky 
by Celine Pham 