With treasury operations becoming increasingly digitised and connected, the associated risks are advancing just as quickly. What once fell squarely within the domain of IT is now a growing concern for finance leaders, with legacy systems posing an often-overlooked threat.
This article explores how cyber threats are evolving, the latest tools being used to combat them, and the practical steps organisations can take.
Why Legacy Systems Are a Growing Threat in Treasury Operations
Legacy systems are one of the most persistent and underestimated risks in financial cybersecurity, leaving organisations exposed in several critical ways:
- Limited security controls. Older systems may not include features like encryption, role-based access, or real-time monitoring making it easier for attackers to move through systems undetected.
- Infrequent patching and unsupported software. Many legacy systems are no longer updated by vendors, leaving known vulnerabilities exposed. Fortinet’s 2023 Threat Report noted that over 60% of exploited vulnerabilities were more than two years old.
- Incompatibility with modern security tools. Legacy platforms can be difficult to integrate with today’s AI-powered fraud detection and identity verification solutions, limiting the ability to create a multi-layered defence.
- Weak auditability and transparency. Custom and outdated systems often lack comprehensive logging or monitoring, which makes it harder to detect breaches or prove compliance.
Despite these risks, many institutions continue to use outdated architecture due to concerns around cost, operational disruption, or dependency on embedded processes. A 2024 Accenture survey found that 58% of financial institutions still use legacy systems for core treasury functions, even though more than half acknowledged the associated security risks.
Cybercriminals are using advanced technologies to exploit vulnerabilities. Traditional methods like phishing remain common, but newer tactics such as business email compromise (BEC), ransomware, and deepfake impersonations are on the rise. These attacks often target high-value transactions and sensitive financial data, making treasury departments a prime focus.
The U.S. Treasury Department reports that AI-powered fraudsters are increasingly overwhelming bank defenses, using generative AI to create convincing deepfake audio and video and bypassing traditional security systems.
To stay on top of these growing threats, financial institutions are taking a multi-layered approach to cybersecurity and fraud prevention. That means using a mix of strategies, including:
- Multi-Factor Authentication (MFA). Adds an extra layer of security by requiring users to provide multiple forms of verification before accessing systems.
- AI-Driven Anomaly Detection. Analyzes vast amounts of transactional data in real-time to identify unusual patterns and flag potential fraudulent activities. For instance, Mastercard's AI systems analyze up to 160 billion transactions annually, enhancing fraud detection rates and reducing false positives.
- Behavioral Biometrics. Analyzes user behaviors such as typing patterns and mouse movements to detect anomalies.
- Employee Training and Awareness. Regular training programs ensure that employees are aware of the latest phishing techniques and social engineering tactics, enabling them to recognize and report suspicious activities promptly.
- Integrating Secure Check Printing and Digital Payment Solutions. While digital payments are on the increase, checks remain a significant part of financial transactions. Financial institutions are adopting secure check printing solutions such as MICR (Magnetic Ink Character Recognition) technology and tamper-resistant check stock to help prevent check fraud.
Why Ignoring Cybersecurity Could Cost More Than You Think
The average cost of a data breach in the financial sector now exceeds $5.9 million. This figure doesn’t include the added impact of regulatory fines or the loss of customer trust.
High-profile breaches have resulted in customer churn, shareholder lawsuits, and long-term damage to brand reputation. Internal fraud, often linked to outdated systems or poor controls, can cause just as much harm.
What’s Next For Treasury Cybersecurity
The future of treasury cybersecurity will be shaped by smarter, more adaptable technologies, including:
- Predictive analytics to deliver real-time insights into fraud risks and improve cash flow forecasting.
- Decentralised identity systems and blockchain-based authentication to reduce single points of failure and prevent unauthorised access.
- AI-driven compliance tools to track and respond to evolving regulations, reducing team workload and human error.
- Zero trust architectures that require continuous verification, adding stronger protection across digital finance systems.
How Financial Organisations Can Stay Ahead
Staying secure in today’s digital environment means being both proactive and well-aligned across your organisation. To build a more resilient defence, finance leaders should:
- Establish governance that connects cybersecurity strategy with treasury oversight.
- Invest in solutions that provide measurable risk reduction.
- Promote a security-conscious culture where awareness extends beyond the IT team.
Resilience requires close collaboration between IT, compliance, treasury, and operations to manage risk effectively and stay ahead of evolving cyber threats.
