Fighting Cyber Threats with New Sophistication
Inside New Jersey’s banking industry, artificial intelligence (AI) is quickly changing the business of cybersecurity. It is also becoming a major source for creative new cyber threats. According to CrowdStrike, there has been an 89% increase in attacks by AI-enabled adversaries in America.
Microsoft’s annual digital defense report revealed that there are between 2,200 and 2,400 meaningful, targeted cyberattacks in the US every day. And the cost of a single breech can be expensive. In IBM’s annual Cost of a Data Breach Report for 2025, the firm warns that too many companies are rolling out AI too fast without securing it. In the finance industry specifically, the average cost per breach is approximately $6 million. The report further reveals that AI was used in 16% of breaches, with power phishing campaigns and deepfakes representing the most-used tactics.
Meanwhile, shadow AI – unauthorized AI tools running inside companies without security oversight – played a role in 20% of breaches. Of the companies hit by AI-related incidents, 97% lacked proper access controls.
“AI is a force multiplier,” notes Vivin Varghese, chief information security officer with Provident Bank. “The types of attacks aren’t changing dramatically, but the speed and veracity are increasing.” He notes that phishing schemes remain the top choice for cyber criminals attempting to breach banking security systems. Russ Barrett, chief operating officer for Valley Bank, has similar thoughts.
“Philosophically, when you think about your bank, the entire relationship is anchored in trust. And part of that trust is that your money is secure. That’s the reason why cybersecurity is so critical to get right,” he explains. “It’s also why banks are such an attractive target for hacker groups and people who exploit money.”
Barrett reveals three distinct cybersecurity concerns for the bank. “First, it’s people who are looking to penetrate our computing environment to steal our data and our customers’ data. Second, it’s bad actors who are trying to infiltrate our employees, and third, it’s people who are obviously trying to infiltrate our customers by creating fraudulent events, impersonating, or confusing them. The last two areas involve various phishing schemes, which are material risks for any organization.”
Combating AI Threats
Like his counterparts at competing institutions, Provident Bank’s Varghese relies on a wide selection of third-party security software in his tech stack and is always looking at ways criminals might find weaknesses in the bank’s interfaces with humans—both employees and customers alike. He also relies on feedback from his peers. As a member of FS-ISAC, a member-driven, not-for-profit organization that advances cybersecurity and resilience, he is able to stay ahead of new threats and identify concerns and potential solutions.
Education and communication also play significant roles in counteracting AI threats. At Valley Bank, routine threat assessments are the norm, as well as ongoing employee training sessions that boost awareness about current cybersecurity efforts and threats.