Safeguarding Trust in Digital Finance: A Study on Cyber Threats and Defenses

Digital banking has changed the way the world finances are done but this increase poses serious cybersecurity threats. Phishing, malware, and social engineering are becoming more popular with criminals as a way of breaking into financial infrastructure. The paper examines these threats and measures the current defensive strategies. We suggest a multi-layered architecture with the use of continuous behavioral analytics, AI-driven fraud detection, and blockchain ledgers, unlike classical security paradigms. Our analysis proves that the single-point security systems are no longer effective against the modern advanced threats. As a result, there is a need to have a composite defense- in-depth strategy to reduce fraud, safeguard user information, and maintain confidence in online financial ecosystems.