Archive for category: News

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New FASB Updates: How Purchased Financial Assets Accounting Is Changing

Sponsored content by Wipfli LLP, a WBA Silver Associate Member

By Brett D. Schwantes, CPA, Director

The Financial Accounting Standards Board (FASB) is pressing ahead with the purchased financial assets project, aiming to simplify and enhance the transparency of acquired financial assets accounting. 

As of April 30, 2025,  the FASB continued deliberating on proposed updates and made key decisions. It’s expected that a final standard will be released later in 2025. 

Here’s the information your financial institution should know ahead of potential changes: 

Changes to purchased financial assets accounting   

The proposed changes to acquired financial assets accounting include: 

  • In general, loan discounts on performing loans related to credit conditions will now be recognized as allowance for credit losses (ACL) under business combination accounting. 
  • Other loan discounts or premiums that are attributable to fair value adjustments and unrelated to expected credit losses will continue to be accreted/ amortized to interest income over the remaining life of the acquired loans. 
  • The requirement to establish the ACL through a provision at the time of a merger or acquisition will generally be eliminated. 

The accounting treatment for purchased credit deteriorated (PCD) loans will not be changed under the update. Additionally, certain loans — such as those acquired outside of business combinations, credit card receivables and securities — are excluded from the scope of the update. 

Purchased financial assets project scope 

The amendments will apply to qualifying loans, which are loan receivables excluding credit cards. 

However, held-to-maturity debt securities are excluded if they meet the seasoning criteria: 

  • They were acquired as part of a business combination. 
  • They were acquired more than 90 days after the loan origination date, with no involvement by the acquirer with the origination of the loan. 

Determining whether an acquirer was involved in the origination of a loan requires a careful evaluation of all relevant facts and circumstances. Key considerations include: 

  • The acquirer’s direct or indirect exposure to the economic risks and rewards of ownership prior to obtaining control of the financial asset. 
  • The nature of the relationship between the transacting entities, including arrangements made in contemplation of recurring transfers of similar financial assets and the acquirer’s ability to influence the originator’s underwriting standards. 
  • The nature of the transacting entities’ relationship, including any arrangements made contemplating recurring transfers of similar assets or the acquirer’s ability to influence the underwriting standards of the originator. 
  • The transaction’s contractual terms, such as call options written for the acquirer by the originator or forward purchase commitments written by the acquirer to the originator. 
  • Whether funding arrangements between the originator and acquirer or conveyance put options or a similar contract from the acquirer to the originator exists. 
  • Whether a loss-sharing arrangement obligating the acquirer to reimburse the originator for an amount of principal loss incurred by the originator prior to the transfer exists. 
  • Whether a make-whole arrangement obligating the acquirer to reimburse the originator if the acquirer terminates the purchase transaction exists. 

For qualifying loans, the initial amortized cost basis is calculated as the purchase price plus the initial ACL. Accordingly, the acquirer will measure and recognize the ACL at acquisition using an appropriate CECL methodology, with a corresponding entry to a loan’s premium or discount. 

This approach means the acquirer will not need to recognize a post-acquisition provision for credit losses to set up the ACL, as is required under current CECL accounting standards. 

What these changes could mean for your institution   

The revised project objective focuses on improving accounting treatment for the acquisition of purchased financial assets, excluding those classified as PCD. 

Under the current accounting standards, acquired loans are measured and recognized at fair value or the consideration transferred, which typically results in a loan discount or premium reflecting valuation adjustments for market, credit, interest rate and other factors. 

For PCD loans, the ACL is established by reclassifying an amount of the loan discount or premium. Other performing loans recognize ACL through a subsequent charge to provision for credit losses, which can decrease both net income and capital. 

Additionally, the entire loan discount is accreted into interest income over the life of the loan pool. 

The proposed standards seek to align the accounting for qualifying loans — performing loans, excluding credit cards — that meet specific criteria with the existing approach for accounting for PCD loans. 

Qualifying loans would still need to be measured and recognized at the consideration transferred or fair value. And the amount of goodwill recognized in a business combination would not change. 

However, an acquirer would recognize the qualifying loan’s initial ACL as part of the business combination or loan acquisition by reclassifying it — measured with an appropriate CECL methodology — from the loan premium or discount. A provision for credit losses would not be necessary to recognize the initial ACL for qualifying loans. 

This approach under the proposed ASU is expected to result in lower discounts or higher premiums and lower effective interest margins for any qualifying loans acquired. 

Your next steps 

Once finalized, the amendments will be applied prospectively to annual reporting periods beginning after December 15, 2026, including interim reporting periods within those annual periods. The disclosure requirements under ASC 326 will remain unchanged. 

Based on previous FASB decisions, institutions can early adopt the ASU once finalized. However, your institution will not be permitted to restate prior-period financial statements for loan acquisitions occurring in those periods. 

If the final standard is issued in 2025, a calendar year entity may apply the proposed ASU to loan acquisitions that occurred earlier in the year. A fiscal year entity (e.g., the year ended June 30, 2025) may apply the proposed ASU to loan acquisitions that occurred within the fiscal year — provided the financial statements have not yet been issued, even if the ASU is finalized after the fiscal year-end. 

How Wipfli can help 

If your institution is planning or has recently completed a business combination or loan acquisition, Wipfli is ready to help. We combine decades of accounting experience and knowledge of the financial services industry’s unique challenges to deliver guidance on how you can navigate accounting changes effectively. 

Connect with our  assurance for financial services  team today to explore how the proposed accounting standards could impact your institution. 

See our additional resources more financial institution insights: 

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Executive Letter: Trigger Lead Bill to Be Signed Into Law

From the Desk of Rose Oswald PoelsBy Rose Oswald Poels

I am excited to share that the Homebuyers Privacy Protection Act (H.R. 2808) — known as the “Trigger Lead” Bill — has been passed by the Senate. The bill cleared the House earlier this year and will now advance to the President’s desk to be signed into law. Passage of this legislation has been a top priority for WBA, and many members joined me in advocating for its passage over the past two congressional sessions. This milestone reflects the power of our collective voice in protecting consumers and strengthening the banking industry. 

Once signed into law, credit reporting agencies will be prohibited from providing a consumer’s credit report to third parties in connection with a residential mortgage transaction unless the request meets strict criteria. A consumer’s information may only be shared if:

The transaction involves a firm offer of credit or insurance and the third party either:

  • Certifies it has been obtained by the consumer’s consent, or
  • Has an existing relationship with the consumer as a mortgage originator, current loan servicer, or is a bank or credit union where the consumer holds an active account.
  1. The provision effectively ends the practice of unsolicited “trigger leads” and will take effect 180 days after the bill’s enactment.

A success like this underscores the power of WBA advocacy. Consumers will no longer be pestered with unwanted phone calls and text messages within hours of applying for a mortgage, and — most importantly — customers will no longer experience the confusion or frustration of believing their bank improperly shared their information with a third party.  

Thank you to all our members who submitted letters or spoke directly with lawmakers about the passage of this important bill and of the relevant ways it would benefit consumers. As always, we encourage you to join us on future advocacy trips to Washington, D.C. Your voice is critical — and your advocacy continues to make a powerful difference.

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Wisconsin Bankers Association Warns of Rise in Bank Spoofing Occurring in Wisconsin — Bank Customers Must Be Vigilant Against Financial Fraud

The Wisconsin Bankers Association (WBA) is warning Wisconsinites of increased bank fraud and encourages citizens to continue their efforts to spot scams by criminals seeking to obtain bank account or personal information. With greater frequency, Wisconsin banks see a variety of fraud activity targeting consumers, including recent attempts by bad actors to defraud customers through calls impersonating the bank. Many instances include “phone number spoofing” which makes the call appear as if it were from the bank itself. If a call seems suspicious, hang up and contact the bank directly using a verified number.

“Banks across Wisconsin go to great lengths to help protect customers by investing in anti-fraud tools and account security. Wisconsin bankers, law enforcement, and other state agencies do a good job on educating Wisconsin residents on the importance of protecting personal data and banking account information,” said Rose Oswald Poels, WBA President and CEO. “However, criminals are sophisticated in their spoofing of bank names on Caller ID and creating fake websites or text messages with bank logos to mislead customers into providing account access information or transferring money. Bank customers must be vigilant to protect bank account and personal information from criminals.”

The Wisconsin Bankers Association offers the following tips to help protect customers against scams or financial exploitation:

  1. Watch for these red flags of phishing in emails, calls, and text messages:
    • They ask you to open a link you were not expecting
    • They use urgent or fear-inducing language
    • They send an attachment
    • They request personal information like PINs, passwords, or social security numbers
    • They pressure you to log into, or send money with, payment apps
  2. Write safer checks:
    • Use permanent gel pens when you write a check
    • Avoid blank spaces so criminals can’t fill them in instead
    • Withhold personal information on your checks
    • Take your mail directly to a U.S. Post Office location; do not use your mailbox at home or a free-standing blue drop box to send mail
    • Attentively monitor your account activity on your online banking platform
    • Regularly review your paid checks on your online banking platform, including ensuring the endorsement is correct and reflects the intended payee and amount
    • Switch to your bank’s payment app or online bill pay instead of writing a check
    • Follow up with payees to confirm they received and deposited your check

The best defense against scams is to stay informed. More information about how to spot scams and bank spoofing may be found at: https://www.banksneveraskthat.com/.

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One Community Bank Finalizes Merger with Intercity State Bank

One Community Bank is excited to welcome Intercity State Bank to our growing organization. The successful completion of this planned merger is official as of August 1, 2025. This merger brings together two like-minded community banks with a shared mission to serve clients, support colleagues, and invest in their local communities.

“I am excited to have Intercity State Bank join One Community Bank in 2025,” said Steve Peotter, President and CEO of One Community Bank. “I have enjoyed the opportunity to get to know the Intercity team over the years. Through this merger and our aligned approach, we will enhance our clients’ experience, provide expanded career opportunities for colleagues, and elevate our support of the greater Wausau community.”

The relationship between the two organizations is long-standing. Steve Peotter has served on the Intercity Board of Directors for the past decade. The banks have also partnered on several projects in the greater Wausau area. The combined organization will continue to be owned by the same shareholder group, further reinforcing our aligned mission and values. “Both the OCB and Intercity teams have a strong focus on personalized service and community values,” said Chris Pfender, Regional President of Intercity State Bank. “We have been working hard to ensure a seamless transition for our valued clients. Together, we are deeply committed to continuing to grow in North Central Wisconsin.”

Effective August 1, 2-25, Intercity State Bank will operate as Intercity State Bank – Branch of One Community Bank. Clients will continue to enjoy exceptional service from the people they know and trust in Schofield, Weston and Wausau.

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From The Fields: Navigating the Future of Wisconsin Agriculture – Resilience. Risk. Opportunity.

By Lance Lansing

Wisconsin agriculture continues to be a cornerstone of the state’s economy and identity, with dairy, grain, livestock, and specialty crops all contributing to a vibrant, diverse industry. As agricultural lenders, our role extends beyond traditional banking—we are risk managers, strategic advisors, and partners in growth. In today’s climate, that role is more critical than ever.

Economic Headwinds and Financial Stress

Inflationary pressures, higher interest rates, and volatile commodity prices are reshaping the financial outlook for Wisconsin farmers. While some have benefited from strong milk and grain prices in recent years, rising input costs—particularly fuel, fertilizer, and feed—have cut into margins. The net result is greater financial stress on operations with tight working capital and high leverage.

As lenders, we must balance risk with long-term relationships. Tools like cash flow projections, margin analysis, and stress testing remain vital, particularly when evaluating renewals or new lending opportunities in sectors such as grain, where volatility remains high.

Climate and Conservation: A Growing Focus

Weather extremes—from drought in northern counties to excessive rainfall in southern regions—underscore the need for climate resilience. Many Wisconsin farmers are adopting conservation practices, such as cover cropping, no-till planting, and managed grazing, to build soil health and mitigate environmental risk.

These efforts present unique lending opportunities. Lenders can play a proactive role by supporting farmers through USDA conservation programs or by exploring green financing models that reward sustainability practices with lower borrowing costs.

Generational Transition: Planning Ahead

An estimated 60% of Wisconsin’s farms are expected to change hands in the next 10–15 years. However, fewer than half have a formal succession plan. This generational transition presents both a challenge and a chance for agricultural bankers to add value. We can support clients with planning services, facilitate land transfer strategies, and provide the capital needed for younger generations to step into ownership.

It’s also critical that we build strong relationships with the next generation of producers—offering financial literacy, tech-savvy lending platforms, and flexible loan products that align with the evolving priorities of younger farm operators.

Technology and Innovation in Lending

Precision agriculture, robotics, and data analytics are transforming farm management. These technologies can improve efficiency and profitability—but they also require capital. Banks that understand the ROI of ag tech investments can offer more targeted financing solutions, such as equipment loans, leasing programs, or partnerships with tech providers.

Additionally, digital lending platforms are streamlining loan applications and approvals, particularly for smaller operations and rural customers. Embracing innovation in lending processes will be key to staying competitive and responsive in this fast-changing environment.

Conclusion

Wisconsin’s agricultural landscape is evolving, and so too must our approach to agricultural banking. By deepening our understanding of the challenges our clients face—and proactively offering strategic, customized solutions—we can continue to be trusted partners in Wisconsin’s agricultural success.

Lansing is vice president – lending at Apple River State Bank in Darlington. Lansing also currently serves as the Vice Chair of the WBA Agricultural Bankers Section Board of Directors.

 

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Wisconsin Bankers Association Announces $60,000 in Housing and Economic Development Grants

The Wisconsin Bankers Association (WBA) is pleased to announce that six grants of $10,000 each have been awarded to support housing and housing literacy, economic development/community investment, and financial or cyber literacy in Wisconsin.

“Affordable housing and financial literacy are acute needs for individuals and families in our state and are essential for economic stability,” said Rose Oswald Poels, WBA president and CEO. “We are proud to once again offer this grant opportunity, which showcases the partnership of Wisconsin banks and non-profit organizations to strengthen programming that empowers Wisconsinites to become financially capable, promotes homeownership, and builds wealth that can be passed on to future generations.”

The selected projects include:

  • Bank of Prairie du Sac
    • Bank of Prairie du Sac plans to work in partnership with 6:8, Inc. to help support the 6:8 Circles program which works to both empower highly motivated low-income participants to permanently move out of poverty and into stability and increase the “poverty IQ” of leaders in business, education, health, philanthropy, volunteerism, public service, and other major sectors of the community in order to motivate strategic collective action to resolve systemic barriers to self-sufficiency.
  • Bay Bank, Green Bay, Wis.
    • Bay Bank is a stakeholder of a new effort, the Wisconsin Native Homeownership Coalition, which consists of different professionals from Wisconsin’s tribal communities that are engaged in housing related activities. The coalition brings together Bay Bank, two Native CDFI lenders, tribal housing authority executives, and an affordable housing developer to develop tools, resources, and practices that will increase the number of housing units for Native Americans. WHEDA’s tribal liaison is also participating in the Coalition efforts. The grant funds will be used towards the cost of developing a written strategic plan for the Wisconsin Coalition.
  • Horicon Bank
    • Horicon Bank plans to develop a down payment assistance program to make homeownership more accessible to families. Through a partnership with Acts Housing, Horicon Bank will ensure that homebuyers receive the financial guidance they need throughout the homebuying process.
  • PremierBank, Fort Atkinson, Wis.
    • PremierBank plans to help expand financial literacy and cybersecurity fraud prevention education materials in Spanish throughout Janesville and surrounding communities in collaboration with Adelante Janesville, a program of Forward Janesville that was formed two years ago to uncover ways to better serve the Latino community, specifically by supporting Latino business owners and entrepreneurs in the Janesville area.
  • The Bank of New Glarus
    • The Bank of New Glarus has collaborated with St Vincent de Paul of Green County located in Monroe to develop and distribute a microloan program for emergency financial assistance to low-income families for housing related expenses, specifically overdue rent or utilities. The program will also provide financial literacy counseling through the University of Wisconsin Extension. The grant funds will support the operations of the microloan program, providing financial relief and empowerment to community members in need.
  • Woodford State Bank, Monroe, Wis.
    • Woodford State Bank plans to implement a community-based program to address financial literacy, help prevent fraud, and to better understand the home-buying process thereby empowering individuals to achieve financial stability and homeownership. Specific focus being placed on the Lafayette County in southwest, Wisconsin.
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Community Advocate Spotlight: Northern State Bank President John H. Beirl

The following is a brief interview between WBA President and CEO Rose Oswald Poels and President of Northern State Bank in Ashland John H. Beirl.

John H. Beirl

Rose: How did you first get into the banking industry?
John: I mostly credit my education, at the University of Wisconsin – Madison, for my banking career. Neither of my parents were college grads. My mother was a secretary. My father was … well honestly … an alcoholic. Early on, I realized my only ticket out and up would be through a good education.

I couldn’t afford private college or out-of-state tuition, so I opted for Madison. First Wisconsin – Madison was my first banking job after obtaining my MBA. After First Wis, I continued to learn through positions at First of America – Michigan and NorthLand Bank of Wisconsin. Throughout my career, I have held many titles; branch manager (yes, with teller duties), consumer, mortgage, commercial lender, chief loan officer, and president.

After years away, I was offered a position to come back home — to work at the last remaining community bank in Ashland; Northern State Bank. I am living proof that you can go home again.

What is your favorite aspect of your role at the bank?
I value building relationships with my customers, fellow employees, supporting entities, and our community. Strong customer relationships are the foundation of community banking. I know the people in my hometown. A lot of them are my customers. I know their families. I know their life stories. Over the years, we’ve built a confident trust. They know I will be there for them … offering sound and honest financial options.

My fellow workers are my second family. I spend more of my waking hours with them, than I do at home. We are on the same team. We share our lives.

Building relationships with key external support partners and vendors helps us provide quality customer service. We cannot do everything internally. We form bonds with people and organizations we know we can rely on.

When our community improves, we all do better. I grew up in Ashland. My roots run deep. I volunteer … lots. We are in this together.

What do you wish the general public understood about the banking industry?
Community banking is built on trust. Most community bankers are not paid on commission. We do well when our customers succeed. Community bankers listen and match our products and services to wants and needs – to make lives better. It’s what we do. It sets us apart.

Where do you believe the industry’s greatest challenges are in the next three to five years?
I believe community banks’ greatest challenges are succession planning and finding good people who will be committed to our industry.

Do we have qualified people who will continue to carry the torch? If not, where will they come from? What about the work ethic?

Please describe your current role at your bank and share with us one of your more rewarding experiences (e.g., A time you had to go above and beyond to help a customer, a memorable customer interaction, stepping in to help the local community after a disaster, or something more personal, etc.).
I view my current role as managing, mentoring, and transferring longstanding relationships. Managing and mentoring means accepting change yet acknowledging and honoring the values, processes, and procedures that got us here … and made us successful.

Transferring my customer relationships will require both time and great care. My loan portfolio was sizeable and built over decades. Our customers are our greatest assets.

When I was grade school age, my mother worked as a loan secretary at Northern State Bank. We lived on the east side of Ashland and the Little League parks were on the west side. The bank is smack-dab in the center of town. Almost every day, a group of us sandlot kids would ride our banana bikes
to play baseball. After many a hot summer games, we would bicycle home and stop at the bank for a drink of cold water (at their water fountain) and I’d say “Hi!” to mom.

My mother retired in 1984 and was diagnosed with breast cancer that same year. She passed, after an anguishing battle, six years later. She would never live to see her son come back home and become President of Northern State Bank. Miss you, Mom!

Do you know a banker who should be recognized as a Community Advocate for the work that they do? Nominate them today by emailing Rose at ropoels@wisbank.com!

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Strategic Connections: The Power of Intentional Networking

By Josh Effinger

Josh Effinger

Networking is a great tool for sales focused teams to acquire new business, but it’s also important to instill that culture into everyone in the organization, especially the marketing department. When you make networking intentional, it connects you to fresh ideas, local partnerships, and peer support. It can also align the marketing and sales teams to work better together.

1. Network with Your Own Team
Developing powerful relationships with your front-line colleagues will give you valuable insights from those working directly with the customers. They know what drives sales, generates interest, and what questions or pain points are trending.

•  Attend internal meetings outside your focus
•  Go on a sales or service call with a banker
•  Network directly with customers and find ways to provide extra value for them and leverage that time to get testimonials and feedback

Regularly connecting will give you real time feedback on marketing initiatives. It will also help align messaging and strategy across departments throughout the bank.

2. External Networking
Networking outside of the bank is an opportunity for marketing professionals to build their network and get more out of their marketing budget.

•  Attend events hosted by your local Chamber of Commerce, small business alliances, or other community organizations
•  Get involved by joining a committee or board of directors for a local organization, event or non-profit
•  Connect regularly with other marketing peers to collaborate on ideas
•  Practice a “sales” mentality on behalf of the bank by asking for business

Networking allows you to grow both personally and professionally. The more you network, the more effectively you can position your institution for growth.

For a marketing professional at a community bank, the value of strong relationships cannot be overstated. Building connections within your own team fosters collaboration and alignment, while external networking opens doors to new ideas, partnerships, and opportunities. Intentionally investing in networking can lay the foundation for both personal development and the long-term strength of your bank’s marketing efforts.

Josh Effinger is marketing officer at Ixonia Bank and member of the 2025–2026 WBA Marketing Committee.

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Executive Letter: WBA Remains Engaged on Digital Currency Policy

From the Desk of Rose Oswald PoelsBy Rose Oswald Poels

President Trump’s signing of the GENIUS Act into law last Friday marks a significant development in the evolving conversation around digital currencies at the federal level. The new law, which passed broadly with bipartisan support in both the Senate and House, establishes a federal regulatory framework for payment stablecoins in the United States. Among other requirements, the GENIUS Act mandates that stablecoin issuers maintain reserves on a 1:1 basis with the value of outstanding stablecoins, using assets such as cash, government securities, or other highly liquid assets including deposits held at insured banks and credit unions. The law also requires stablecoin issuers to follow BSA and tailored AML rules.

As policymakers continue to outline and debate the market structure of and other issues related to digital assets with the CLARITY Act passing the House last week and moving to the Senate, the Wisconsin Bankers Association remains committed to making sure the voice of traditional banking is heard clearly. We remain closely engaged with these conversations in order to advocate for balanced policy that preserves the strength of traditional banking.

WBA staff is currently developing resources to help our members better understand the effects of the GENIUS Act — more specifically how stablecoin and digital assets fit into the world of traditional banking—and what it may signal for future regulation. Also in the works: both banker-related and consumer-facing information pieces regarding the Act, opportunities and considerations in the evolving market, and digital currency overall. These materials will be available in the weeks ahead, and we encourage you to watch for updates in the Wisconsin Banker Daily and our website.

Digital asset issues are not limited to Washington, D.C. WBA remains engaged at the state level as well to ensure the industry is represented during cryptocurrency discussions.

WBA will continue to keep members informed as the digital assets landscape evolves. Please do not hesitate to let me or others on the WBA team know what additional education or resources would be helpful as we navigate this emerging payment method.

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Understanding the Impact of Quantum Computing and AI on Cybersecurity

By Rob Foxx

The topics of quantum computing and AI are often new and confusing—and unfortunately, they haven’t been well explained to many people. However, these technologies are already changing the ways in which attackers gain access to systems and data.

According to a recent report by Mimecast, 95% of breaches are caused by human error. This staggering figure highlights the critical importance of training your staff as a core part of any cybersecurity strategy. These errors typically occur because someone or something appeared legitimate enough to prompt user action. This allows attackers to bypass most traditional security controls, since the malicious action is performed by an authorized user. As technology continues to evolve, we can expect human error to play an even greater role in future breaches.

How Quantum Computing Changes the Game
Before diving into its implications, it’s important to define what quantum computing actually is. Traditional computers use binary logic, representing data as either a 1 or a 0. In contrast, quantum computers leverage qubits, which can represent 1 and 0 simultaneously through a principle called superposition. This allows quantum computers to evaluate many possibilities at once, significantly accelerating complex computations.

While quantum computing demands more power and specialized hardware, its speed poses a serious threat to current cybersecurity defenses. For example, tasks like reversing a hash (e.g., an encrypted password) — which would take traditional computers days, weeks, or even years — can potentially be performed in a fraction of the time using quantum technology.

Quantum computing can also enable more sophisticated malware, especially under ransomware-as-a-service models, and may dramatically accelerate the discovery of zero-day vulnerabilities — making patching and proactive defense more critical than ever.

The Role of AI in Evolving Threats
Artificial Intelligence, at this point, should be a familiar concept. AI consumes vast amounts of data, analyzes it, and uses that as a foundation to learn, reason, and solve problems. While it’s far from perfect, AI has become a powerful tool — especially for bad actors.

Cybercriminals are now using AI to improve their research, enhance targeted phishing, and execute more convincing social engineering attacks. With access to better, more personalized data than ever before, AI-generated threats can appear highly authentic — even to seasoned users.

Additionally, AI can be used to create ransomware faster, with greater effectiveness, and with less technical skill required than in the past. These advantages make AI an indispensable tool for attackers — and a growing concern for defenders.

What You Can Do
The most important thing you can do today is educate your team and ensure you have access to cybersecurity experts who can help manage these risks. Strong security practices are more critical than ever, including:
•  Longer passwords, as recommended by National Institute of Standards and Technology (NIST)
•  Multi-factor authentication (MFA) for system access
•  Continuous logging and review of activity within your environment

In addition, legacy tools are no longer sufficient on their own. Many environments now require upgraded solutions, such as:
•  Next-generation antivirus (NGAV)
•  Managed Detection and Response (MDR) services from providers like Cynet 360, CrowdStrike, and SentinelOne

These solutions can analyze logs, detect threats, and issue alerts far more quickly than human analysts ever could. They typically cover:
•  User behavior analytics
•  System and process monitoring
•  Network traffic inspection
•  File and endpoint analysis

Most importantly, these tools are also AI-powered, allowing them to defend against AI-driven attacks using similar technology. In the rapidly evolving cybersecurity landscape, staying ahead means adopting the same tools and techniques your adversaries are using — and doing it before they do.

Foxx is director – infosec and IT audit services for FIPCO, a WBA Gold Associate Member.

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