In the first quarter of 2024, the FinTech sector faced the highest number of application layer DDoS attacks, as reported by Qrator Labs, a provider of cyber attack mitigation services. These attacks comprised half of all recorded incidents during this period. Application layer DDoS attacks specifically target the top layer of the OSI model, where websites operate. In simpler terms, malicious actors send a massive volume of requests to a specific platform to disable it.

This number represents a clear change from the last quarter of 2023, when financial technologies had a share of 37.58 percent of all attacks. Victor Zyamzin, the Chief Business Officer at Qrator Labs, attributed the growing interest of hackers towards FinTech to the rapid evolution of the sector. Over the last decade, it has become a leading force in financial services, thanks to significant technological progress and the spread of the Internet across the globe. 

According to the latest data from McKinsey, as of July 2023, publicly traded FinTech companies boasted a market capitalization of $550 billion, marking a twofold surge compared to the figures recorded in 2019. Furthermore, during the same period, the FinTech landscape witnessed the emergence of over 272 unicorns, collectively valued at $936 billion. This valuation represents a remarkable sevenfold increase from just 39 firms valued at $1 billion or more five years prior. Notably, in April 2024, three new unicorns emerged in the sector: Paris-based Pigment, Brazilian QI Tech, and Cyera, headquartered in New York.

According to a report by consultancy firm Boston Consulting Group (BCG) and venture capital fund QED Investors, the FinTech sector currently commands a 2 percent share of the $12.5 trillion global financial services revenue. However, projections indicate a significant growth trajectory, with the sector expected to expand to a 7 percent share of the market. Specifically, the banking segment is anticipated to represent nearly 25 percent of all banking valuations worldwide by the year 2030.

Regarding the microsegments, banks, payment systems, and insurance companies were the most targeted sectors within the FinTech field, the Qrator Labs' report shows. They accounted for 29.91 percent, 9.8 percent, and 8.71 percent of all application layer DDoS attacks in Q1 of 2024, respectively. Banks experienced an increase compared to the last quarter of 2023, when they accounted for 14.85 percent of all application layer DDoS attacks. As for payment systems, they saw a slight drop over the same period, from 14.28 percent.

Qrator Labs points out that cyberattacks pose significant threats to businesses. They can disrupt operations, leading to financial losses for entities as well as their customers. According to the IMF's Global Financial Stability Report, nearly one-fifth of reported cyber incidents in the past two decades have affected the global financial sector, causing $12 billion in direct losses to financial firms. Fortunately, there are plenty of ways to minimize cybersecurity risks for companies. They can implement predictive algorithms to prevent DDoS attacks and use reliable security services and tools that help test current cybersecurity software and reveal its vulnerabilities.