Penetration testing – a critical component of financial cybersecurity in 2025

Cybercrime is evolving at an unprecedented pace, with financial institutions increasingly in the crosshairs due to their wealth of sensitive information. To combat this growing threat, financial entities must stay one step ahead by identifying vulnerabilities before attackers do.

Penetration testing simulates real-world attacks to expose weaknesses and improve defences

This is where penetration testing plays a vital role. It simulates real-world attacks to expose weaknesses and improve defences.

“If you’re spending one dollar on cybersecurity and you’re not doing penetration testing, then you’re doing something wrong,” Seemant Sehgal, founder and CEO at BreachLock, told Cybersecurity Ventures.

Experts at the World Economic Forum predict that the total cost of cybercrime will reach $10.5 trillion annually by 2025. This rapid growth necessitates robust defensive strategies, and cybersecurity experts agree.

To combat rising cyber threats, organisations must adopt proactive measures, such as penetration testing.

Penetration testing, or pentesting, has evolved from a “nice to have” to an absolute necessity.

In this piece, we’ll explore the phenomenon of penetration testing and its importance in the era of complex and multifaceted cyber threats.

Why penetration testing is essential in 2025

 To set the context, one should mention these two facts:

1. Penetration testing is gaining significant traction and is expected to become a $4.5 billion industry by 2025, according to a report by MarketsandMarkets.
2. According to the Ponemon Institute, 20% of companies do not test their software for security vulnerabilities.

On the one hand, the market for penetration testing is growing, indicating strong demand as more companies recognise its importance. On the other hand, nearly 20% of businesses and organisations still do not conduct penetration testing, suggesting there is still room for discussion and persuasion.

From a broader perspective, the growth of the penetration testing market corresponds to the boost of artificial intelligence (AI) in the cybersecurity sector (see Fig. 1). Both go toe-to-toe.

Figure 1. AI in cybersecurity market forecast. Source: Precedence Research

What is Penetration Testing?

Penetration testing is a proactive security approach. It identifies and exposes potential vulnerabilities before attackers can exploit them. In 2025, with the surge of AI-driven threats, penetration testing is more important than ever.

• AI-driven cyberattacks. By 2025, AI-driven attacks will be among the biggest challenges for cybersecurity in the financial services sector. These attacks are often automated and highly sophisticated, requiring equally advanced defences.
• Evolving complexity. Financial institutions hold vast amounts of data, making them attractive targets. Penetration tests allow companies to see things from a hacker’s perspective, helping identify weaknesses and gaps.

In 2017, leading credit reporting agency Equifax suffered a major data breach. Attackers exploited a known vulnerability in the Apache Struts framework, allowing them to execute code on the system and access sensitive consumer information.

How it happened

Attackers exploited the unpatched Apache Struts vulnerability by sending crafted requests to gain system access. Since the gap remained unfixed, they quietly accessed databases and copied sensitive records. This was not a clever trick played on employees but a basic technical flaw that should have been fixed and tested earlier.

Consequences

• Personal data exposure. The Federal Trade Commission (FTC) said 147 million Americans were affected. That’s nearly half the US adult population.
• Legal and financial toll. Equifax paid at least $575 million to settle federal and state investigations into the breach. The amount could rise to $700 million under the agreement.
• Long-term impact. Equifax spent a lot on legal fees, customer payouts, and security upgrades and also worked to rebuild trust.

This situation shows how attackers exploit known weaknesses. Early penetration testing could have spotted the Apache Struts flaw. Quick fixes might have avoided one of the biggest data breaches in US history.

A different side of the coin – the role of AI and ML in penetration testing

AI is a double-edged sword in cybersecurity. Attackers use AI to create new threats, while defenders leverage it to strengthen testing and defenses. By 2025, penetration testing will heavily rely on AI and machine learning (ML) to quickly and efficiently identify vulnerabilities.

• Speed and accuracy. AI-driven tools can scan large systems faster and with fewer errors. This allows testers to find and fix vulnerabilities without delays caused by manual methods.
• Sophisticated simulations. AI tools simulate complex attack scenarios that involve multi-layered entry points. This means penetration testing now covers more areas than it did before.

However, AI alone cannot handle the entire penetration testing process. The human element is irreplaceable, well, at least at the moment. Experts bring creative thinking and analyse unique, context-driven vulnerabilities that AI might overlook. As a result, you get a combination of a holistic, foolproof penetration testing strategy for financial institutions.

Tools and techniques in penetration testing for 2025

It is clear that penetration testing and cybersecurity experts are not passive observers of evolving cyber threats. By 2025, new tools and techniques will set higher standards for detecting and mitigating these risks.

With global cybersecurity costs reaching staggering amounts, it has become a matter of survival for most financial organisations and businesses (see Fig. 2).

Figure 2. Global cybercrime cost forecast. Source: Statista

In the battle against cyber threats, penetration testing needs these tools and techniques in 2025:

• Red teaming
• Automated testing tools
• Social engineering simulations

Red teaming

Red teaming occurs when a group of security experts, or ethical hackers, behave like actual attackers. While penetration testing typically focuses on identifying and reporting technical gaps, red teaming takes a broader approach. It evaluates not only technical controls but also people and processes involved in defending the organisation.

Red teams use stealthy methods and often combine various tactics. They might attempt to fool employees through phishing attacks, bypass physical security measures, or exploit overlooked system flaws. Instead of running quick tests, they run longer, more realistic operations that can happen over days or weeks.

The goal is to see how the organisation detects, responds, and recovers from an attack, not just how many holes they can find.

If penetration testing is like checking for open windows and doors, red teaming is more akin to staging a break-in over several nights, testing everything from alarm systems to staff vigilance. Both approaches improve security, but red teaming measures how effectively defenders can spot and stop attackers in real-time. It reveals whether the organisation’s security team, tools, and policies can withstand pressure.

This gives the company a real-world look at how ready they are to handle dangerous attacks.

Imagine a group of experts attempting to bypass an organisation’s security, like a thief trying to find an open window or door to enter a house. If they succeed, they can help secure those openings for the future.

Pro Tip: Companies should conduct red teaming exercises regularly, ideally once or twice a year, to ensure their defenses remain robust against evolving threats.

Automated testing tools

Nessus and Qualys stand out due to their wide adoption and solid reputations. They help companies:

• manage large-scale scans;
• track findings over time;
• provide actionable reports.

Burp Suite and Metasploit often serve as supplementary tools that support more specialised tasks. Automated testing software is becoming smarter and faster, identifying issues and learning from past scans. This approach is crucial for keeping pace with the evolution of emerging threats.

Gartner offers more information on the tools worth looking into.

Automated scanners can perform thousands of security checks, identifying gaps and suggesting fixes. These tools are a crucial starting point for financial organisations, especially those dealing with complex cybersecurity challenges, without overburdening their resources.

Pro Tip: Integrate automated testing tools more frequently into your initial checks. They significantly speed up the testing process, but be sure to combine them with manual tests to catch issues that machines might miss. Of course, this depends on the context – sometimes, automated scanning may not be allowed due to scope restrictions.

Social engineering simulations

These tests focus on the human side of cybersecurity. Remember, according to IBM, 95%  of all cybersecurity-related incidents involve some degree of human error. As a result, social engineering and exploiting human errors are essential tactics for hackers on both sides.

Social engineering simulations are used to see if employees can be tricked into giving out confidential information, like passwords. Penetration testers use tactics similar to what actual attackers do, such as sending phishing emails and making phone calls pretending to be someone trustworthy. The goal is to determine whether employees can recognise these threats and resist them.

Imagine sending an email to an employee that appears to be from the IT department, asking them to click a link to update their password. If they click on it, the simulation reveals a need for more training. Remember: never click on email links unless you are 100% certain of their legitimacy!

Pro Tip: Companies should run these simulations quarterly and follow up with training to ensure employees know how to spot and avoid common traps.

In the end, new techniques ensure that financial institutions do not merely react to threats but are prepared to address and block them in advance. By combining automated tools with specialised methods, cybersecurity measures become more effective in combating ever-changing cyber threats.

How Avenga can help?

Avenga understands the pressure that financial institutions face. We help them improve their security measures, ensure compliance, and stay ahead of emerging digital risks.

Our services include:

• Custom financial software development;
• Penetration testing and security assessments;
• Services aligned with PSD2, ISO 27001, GDPR, and other major regulations;
• Comprehensive compliance guidance for DORA.

We support financial organisations through every step, maintaining trusted partnerships and long-term resilience.

Conclusion

Penetration testing will be the shield for financial institutions in 2025. With the rise of AI-driven threats and increasingly stringent regulations, financial entities cannot afford to overlook proactive security measures. Penetration testing uncovers hidden weaknesses before attackers can exploit them.

Financial institutions must invest in advanced technologies, skilled cybersecurity professionals, and reliable partners to ensure comprehensive protection. The stakes are higher than ever. However, with a proactive approach, financial entities can build a formidable defence against cyber threats.

Is your organisation ready to face the cybersecurity challenges of 2025?

Let’s continue the discussion and find better ways to battle cyber threats.

Contact Avenga or connect with Nikola Kipariz Stamovour.

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