A data breach means when hackers steal private information like bank details, passwords, or personal ID from a company’s system. Eva Velasquez from the Identity Theft Resource Center explained this in an interview with Jeffrey Snyder for The Street. In the US, there were more than 3,000 publicly reported data breaches for the third year in a row. This makes 2025 another record year.

Cyber attacks are rising fast because technology is growing very quickly, especially artificial intelligence. The Financial Services Industry (FSI) is attacked the most because that’s where the money is. Hackers use stolen data to run scams, fraud, and identity theft, making financial firms very attractive targets, as per Eva Velasquez. Banks, wealth advisors, and investment firms face nonstop cyber threats year after year, says Jeffrey Snyder, Broadcast Retirement Network.

Why financial services are targeted

Even big companies with strong security, including famous global brands, are still getting hacked. Companies must protect their systems all the time, but hackers only need one small mistake to get in. Because of this, even companies with good cybersecurity can still become victims of attacks.

Velasquez highlights, most breaches happen through phishing, stolen login details, system weaknesses, or tricking employees. Employee mistakes are going down slightly because of better training, but they are still a risk.

AI increasing cyber attacks

Physical theft of devices or data is increasing a bit, adding another risk for companies. Hackers are using AI to write malicious code and attack faster and at a larger scale. Cybercriminals are creating and selling special AI tools to help others run scams more easily. Companies must use AI too, even though it’s the same tool hackers use, to fight back effectively. Each data breach hurts real people, not just companies, through fraud and identity crimes.

Companies are sharing less information about breaches, making it harder for others to learn and defend themselves. When firms hide details like the root cause of attacks, the entire system becomes weaker. Because of high-value data, constant attacks, and advanced tools like AI, financial services stayed the most targeted industry in 2025. Eva Velasquez notes that, cybersecurity is not just about systems and data, it is about protecting people from real harm.

FAQs

Q1. Why is the financial services industry the most targeted for data breaches?

Because banks and financial firms hold valuable money and personal data that hackers use for fraud and scams.

Q2. How does AI increase the risk of data breaches?

AI helps hackers attack faster and on a larger scale by automating scams and cyber attacks.

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