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CommentMay 23 2016

Cyber crime: a clear and present danger

UK banks must work together to boost their defences against cyber attacks, says a new report.
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UK banks need to increase collaboration in the fight against cyber threats, says a report by lobby group TheCityUK and insurance broker Marsh, following a six-month review of cyber security in the financial services sector.

The report warns that the financial industry is “the perfect target” for cyber attack: not only does it hold money and valuable data, but also forms part of a country's critical infrastructure. As a result, the sector is vulnerable to attacks from intelligence agencies, organised and individual criminals, disgruntled staff, hacktivists and 'script kiddies'.

The recent $81m heist at Bangladesh Bank, where hackers used the Swift network to send fraudulent bank orders, drives home the enormous risk posed by cyber crime. A second instance of a bank being robbed using similar malware has since been uncovered.

According to a letter from Swift to its clients, the attackers exhibited a sophisticated understanding of “specific operational controls” within the targeted banks. This information could have been gathered from contacts within the banks, external cyber attacks, or both. While maintaining that its network had not been compromised, Swift advised customers to review their controls and report any fraudulent activity.

In the report Cyber and the City, TheCityUK and Marsh call on financial firms to work together, sharing attack information and best practice, through an industry-wide cyber forum for major institutions. The forum should partner with groups already established by the UK government and law enforcement agencies, the report suggests.

It also recommends tax breaks to increase investment in cyber defence, and the development of cyber standards in lending, underwriting and investment. It also raises the need to fill the cyber skills gap, encouraging support for apprenticeships and mentoring programmes.

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