Estimated reading time: 4 minutes
Financial Leaders Warn: Cyber Incidents Now Threaten Investor Confidence
In financial services, trust equals capital. Once it’s broken, the path to recovery and restoration of trust can be daunting. Cyber insurance can absorb financial losses. But can it prevent client withdrawals or restore trust after an attack? Nearly nine in ten financial executives say a major cyberattack would trigger client withdrawals or loss of assets. CFOs feel it most; 94% believe investors would flee after a breach. Omega Systems’ 2025 report, The Survival Imperative: Cyber Resilience in Financial Services, reveals an industry under siege.
Key Takeaways
- Cyber incidents threaten investor confidence; 94% of CFOs believe clients would withdraw after a breach.
- Financial firms face routine attacks; 93% experienced at least one in the past year, but many struggle to detect or contain breaches.
- A Cyber Insurance Policy offers limited support, softening financial loss but not restoring trust or preventing withdrawals.
- Legacy systems hinder recovery; half of firms still depend on outdated technologies, exposing them to prolonged breaches.
- Investments in cloud security, threat detection, and infrastructure modernization are critical for improving resilience against future attacks.
Attacks Have Become Routine
The survey, which spans 300 U.S. financial leaders, shows that 93% of firms experienced at least one attack in the past year. Almost one in five faced more than 25 attacks. Common threats include ransomware, phishing, and supply chain breaches.
More than a third of firms would take a week or longer to detect or contain a breach. Six percent say it could take a month. In finance, where capital moves in seconds, response speed determines survival.
Cyber Insurance Policy: A Cushion, Not a Cure
Nearly nine out of ten firms carry cyber insurance, a figure that underscores how cyber risk has become normalized. However, the report cautions that coverage offers only partial relief. “Cyber insurance can soften financial loss, but it cannot stop withdrawals, repair relationships or restore confidence,” the study states.
Financial firms increasingly view cyber resilience, not just cyber insurance, as the ultimate defense. Real-time monitoring, continuous testing, and modern infrastructure are now seen as essential.
Family Offices Remain Vulnerable
Family offices, which manage high-net-worth assets, report the weakest readiness.
- 78% say an attack would spark investor panic.
- 67% admit legacy systems would slow recovery.
- 72% believe they are targeted more often due to wealth concentration.
They also lag in outsourcing: only 8% use external cybersecurity providers, compared with broader industry averages. This leaves them exposed in an era of AI-driven threats and deepfakes.
Outdated Systems Slow Recovery
Half of all financial firms still rely on legacy or on-premises systems. These outdated setups hinder recovery and heighten exposure. Meanwhile, 57% are not monitoring threats in real-time, leaving them vulnerable to extended breaches.
A quarter of firms lack incident response training. Another 28% have no current backup system in place. For a sector built on precision, the gaps are staggering.
MSSPs Prove Their Worth
The study finds a clear resilience gap between firms that outsource security and those that don’t.
- Firms relying on internal IT are 56% more likely to face 25 or more attacks annually.
- Only 10% of internal teams feel “very confident” detecting AI-driven threats, versus 30% of MSSP-backed firms.
Outsourced security partners deliver faster containment and stronger recovery. Omega’s CEO Mike Fuhrman calls resilience “a competitive edge.”
ONE MINUTE WATCH – Mosaic, Incyde Risk, and Safe Security Partner to Strengthen Cybersecurity in Financial Sector
Investment Priorities for 2026
Looking forward, most firms plan to invest in:
- Cloud adoption and security (51%)
- Threat detection and response (50%)
- Infrastructure modernization (41%)
- Multi-factor authentication (39%)
- Backup and recovery (36%)
Firms are shifting from compliance-driven spending to continuous defense strategies.
Cyber Resilience is the New Business Performance
Omega’s report concludes that cybersecurity and business continuity are now inseparable. A breach can erase years of investor trust in days. To survive, firms must modernize systems, adopt 24/7 threat monitoring, and partner with experienced providers.
The message is clear: insurance helps you recover money; resilience helps you recover trust.
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