“2024 was rough; why should 2025 be any different?” This is the mantra heard in many community banks and credit unions as they brace for the next wave of cybersecurity threats. But what exactly is coming down the pipeline? Let's look at the forces likely to shape the cybersecurity landscape for these community financial institutions in the year ahead.
- The Rise of AI-Driven Attacks
2024 Recap: By now, AI-powered chatbots have evolved from customer service helpers to social engineers’ new best friends. Community banks are particularly vulnerable since sophisticated spear-phishing campaigns and fraudulent automated transactions can be launched with minimal effort.
2025 Prediction: Expect automated attacks to get better at bypassing authentication methods, making it critical for community financial institutions to invest in behavior-based AI defenses.
Pro Tip: Think of AI like fire—it can either warm your house or burn it down. Leveraging “good AI” for anomaly detection might be the best strategy here.
- The Return of Ransomware - Now in Modular Form
New Threat Model: Ransomware-as-a-Service (RaaS) isn't new, but in 2025, ransomware kits will likely come with modules tailored to specific industries. For community financial institutions, this could mean ransomware designed to target financial workflows, extract data, or hold up customer portals.
Preparation Tactic: Strengthening backup protocols and conducting ransomware simulations will be essential.
- Sunsetting of the Cybersecurity Assessment Tool (CAT)
Farewell to an Old Friend: The Cybersecurity Assessment Tool (CAT) has been a staple for many community financial institutions looking to meet regulatory requirements and benchmark their cybersecurity maturity. However, as the CAT phases out, these institutions face a critical question: What replaces it?
New Frameworks to Watch: The CAT will likely be replaced by tools that incorporate more dynamic, real-time risk assessment capabilities. Expect a shift toward frameworks emphasizing continuous monitoring, risk-based scoring, and real-time alerts—think zero-trust and security-by-design principles.
Adapting for 2025: Without CAT’s structured approach, smaller institutions might struggle to find a replacement that’s as straightforward and affordable. To keep up, they’ll need to evaluate emerging tools and frameworks that offer flexibility and can integrate with existing systems.
Pro Tip: Treat this as an opportunity to upgrade—not just a forced retirement. The next generation of frameworks may offer more robust insights than CAT ever could.
- The Human Factor - It’s Always a Risk
The Reality: Your best people can be your weakest link, especially when fatigue hits after yet another mandatory training module.
What to Change: In 2025, the smart move is adopting continuous, bite-sized training that’s not only digestible but actually enjoyable (gamification, anyone?).
Emphasis on Detection: Focus on giving staff the tools to detect and report suspicious activity fast.
Pro Tip: The secret to great training? Make it like a heist movie: suspenseful, fast-paced, and with a clear villain (the cyber attacker).
- Cloud Migration Pitfalls
The Temptation: Cloud adoption is appealing, especially when budgets are tight. However, moving to the cloud without strong security measures can be a double-edged sword.
Key Risks: Expect new variants of “cloud-specific” attacks—misconfigured permissions, poor visibility, and more “shadow IT” projects.
Solution: Make security the starting point of any cloud project, not an afterthought. This means involving security teams in every cloud migration decision.
Tip: If your cloud migration plan is “we’ll figure it out as we go,” that’s an invitation for disaster. Always secure first, migrate second.
In 2025, community financial institutions will face unique cybersecurity challenges that blend emerging threats with the same familiar foes. With proactive strategies community banks and credit unions can face the future without fear—and even a bit of confidence. If you're looking for help to improve the proactive management of your cybersecurity program we'd love to hear more about your unique needs. Shoot us an email at support@bedelsecurity.com to get the conversation started.