Cyber Threats Loom Larger Over India’s BFSI Sector in 2025: Deepfakes, AI and Many More

In 2024, one in five reported cyberattacks in India targeted the Banking, Financial Services, and Insurance (BFSI) sector. This data was published in the Economic Survey 2025. The volume and complexity of threats are expected to rise in 2025.

Digital Threat Report 2024 Released

The Ministry of Electronics and Information Technology (MeitY), along with CERT-In, CSIRT-Fin, and cybersecurity firm SISA, released the Digital Threat Report 2024. The report outlines current risks and anticipates cyber threats expected to affect the BFSI sector in 2025.

Major Cyber Risks Identified

1. Deepfakes and Social Engineering
   AI-generated deepfakes may be used to impersonate senior executives through video or voice, with the aim of tricking employees into transferring funds or sharing confidential data.
2. Software Supply Chain Attacks
   Malicious code can be inserted into open-source libraries and developer tools, which are then unknowingly used in financial applications.
3. Prompt Injection in LLMs
   Locally hosted large language models in enterprise software can be manipulated through prompts, leading to data leaks or incorrect automated decisions.
4. Adversarial LLM Tools
   AI tools like WormGPT and FraudGPT are being used to write phishing emails, malware, and exploit code, making it easier for less-skilled attackers to carry out complex operations.
5. Quantum Computing Threats
   Quantum algorithms such as Shor’s and Grover’s have the potential to break current encryption methods, posing long-term risks to data security.
6. Cryptocurrency Exploits
   Cryptocurrencies like Monero allow for untraceable transactions. These are being used for laundering and ransom payments.
7. IoT and Embedded Device Vulnerabilities
   Devices connected to financial networks are susceptible to firmware tampering and other hardware-level attacks.

Conclusion

The BFSI sector remains a key target for cyberattacks. The report outlines vulnerabilities and highlights the need for updated defenses as threats evolve in 2025.

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