Rising DDoS Attacks Wallop UAE’s Growing Fintech Industry

Qrator Labs recently issued a detailed report on the rise in application layer DDos attacks in the fintech sector.

According to the cyberattack mitigation services provider, there was a substantial rise in these attacks in the first quarter of this year.

The Attacks

The company revealed that almost half of the cyber incidents recorded were application layer DDoS attacks.

Such attacks focus on the uppermost layer of the OSI model from where websites operate. To put it simply, a specific platform is inundated with an overwhelming number of requests.

The goal is to disable its functionality. In the last quarter of 2023, 37.58% of these DDoS attacks had focused on the fintech industry, but this number has gone up.

Qrator Labs’ Chief Business Officer, Victor Zyamzin said that the rapid growth and evolution of the fintech sector was likely the cause of the rise.

In the last decade, fintech has emerged as a force to be reckoned with. There have been various technological advancements, with the widespread use of the internet.

According to Zyamzin, the UAE’s fintech sector is particularly vulnerable to these malicious attacks.

UAE’s Fintech sector

The sector is still in its infancy in the UAE and this automatically draws cybercriminals. Recent estimates show that the fintech industry is expected to rise to $5.71 billion from $3.16 billion by 2029.

This translates to a 12.56% CAGR (compound annual growth rate). There are various factors contributing to this growth.

First off, there is increasing demand from consumers for sophisticated financial services. Likewise, the Emirate has also introduced supportive regulatory frameworks.

Furthermore, the investment climate is also very favorable. Data from S&P Global revealed that last year, fintech companies in the UAE were able to raise $128.4 million.

The fintech landscape is quite broad, but these cyberattacks have targeted specific microsegments. These include insurance companies, payment systems and banks.

The Target

According to the report from Qrator Labs, the primary target in the first quarter of the year were banks. 29.91% of all application layer DDoS attacks were focused on banks.

There was also a notable impact on payment systems, with 9.8% attacks targeting them. However, this was a decline from 14.28% in the previous quarter.

8.71% of the attacks targeted insurance companies. The report also highlighted the threat to business operations due to these cyberattacks.

As of last year, 77% of companies based in the Asia-Pacific region, including the UAE, do not have the adequate tools required to combat cyberattacks.

Likewise, 90% of the firms revealed that cybersecurity specialists are in short supply. This highlights an absence of appropriate defense mechanisms.

Zyamzin warned that these cyberattacks can have devastating repercussions, as both customers and businesses can suffer from substantial financial losses.

While the challenges may be daunting, businesses can implement various strategies to mitigate cybersecurity risks.