RegionsEEAEU set to test banks’ cybersecurity

EU set to test banks’ cybersecurity

The European Union is expected to respond to the growing number of cyberattacks launched against banks by testing their defences.

European Union (EU) officials have indicated that European banks’ cybersecurity defences may be tested to gauge how resilient their systems are to the growing incidence of cyberattack.

The frequency, sophistication and ambition of attacks have increased in recent years, as criminals find new ways to target banks beyond trying to illicitly obtain details of their customers’ online accounts. Among the most high-profile was last February’s US$81m heist on the Bangladesh central bank when hackers infiltrated its system and gained access to the SWIFT international transactions network.

Reports of a possible EU-wide stress test follow the publication last month of a report from the European Banking Authority (EBA), which found that financial institutions “are struggling to demonstrate their ability to cope with the rising threat of intruders gaining unauthorised access to their critical systems and data.”

A year ago, the European Central Bank (ECB) established a database to register and track incidents of cybercrime at commercial banks as part of a longer-term goal to establish a database to register and track cybercrime occurrences at commercial banks, with the ultimate goal of creating an “early warning and analysis system” geared toward major lenders.

However, according to the EBA, Europe’s banks are reliant on a digital infrastructure that is “rigid and outdated”. The EBA is expected to detail this summer the checks it intends to impose in its next stress test exercise on Europe’s banks, planned for mid-2018. In the meantime, the EU agency for network and information security (ENISA) has reported that blockchain technology has the ability to introduce efficiencies and cut costs but not to eliminate security concerns, particularly in decentralised networks.

Rob Norris, ‎vice president (VP) and head of enterprise and cyber security for Europe, the Middle East, India and Africa (EMEIA) at Fujitsu commented: “The news that the EU is considering cyber stress testing, similar to that of the UK is a wise idea. With the number of threats continuing to increase exponentially, customer trust has never been so valuable or hard to come by and as such it has never been more important for banks to test and ensure they are protected appropriately.

“It is paramount that the industry does not overlook or get complacent about security or place it in the “too big to fix” category, and instead takes a proactive approach. Banks need to be able to spot, react and defend against a breach quickly, by having a threat monitoring/detection system in place which is where stress testing can play a pivotal role, providing the necessary context to deal with today’s advanced cyber threats. With digital continuing to pave the way in financial services, the industry can no longer afford for it not to be the number one priority.”

Whitepaper

Netting: An Immersive Guide to Global Reconciliation

Netting: An Immersive Guide to Global Reconciliation

2m
Mitigating Costs and Exposure - A Multilateral Netting White Paper

Mitigating Costs and Exposure - A Multilateral Netting White Paper

2m
Cyber Fraud and Treasury - How to Stay Ahead of Emerging Threats

Cyber Fraud and Treasury - How to Stay Ahead of Emerging Threats

2m
How to Maximize Visibility and Automation with a Centralized Treasury Solution

How to Maximize Visibility and Automation with a Centralized Treasury Solution

2m

Related Articles

Green Bond debut for Royal Bank of Canada

Banking Green Bond debut for Royal Bank of Canada

5h Jay Ashar
Easing the KYC burden on treasury

Banking Easing the KYC burden on treasury

2d Austin Clark
HSBC and Walmart join forces on sustainable supply chain finance programme

Corporate to Bank Relationships HSBC and Walmart join forces on sustainable supply chain finance programme

1w Jay Ashar
Mastercard delivers greater transparency for commercial cardholders

Corporate to Bank Relationships Mastercard delivers greater transparency for commercial cardholders

1w Austin Clark
SWIFT brings together ISO 20022 community

Banking SWIFT brings together ISO 20022 community

3w Austin Clark
The SAP Ariba and American Express partnership: What it means for treasurers

Cash Management The SAP Ariba and American Express partnership: What it means for treasurers

3w Austin Clark
American Express and SAP Ariba join forces to roll out token-based virtual card payments

Corporate to Bank Relationships American Express and SAP Ariba join forces to roll out token-based virtual card payments

3w Austin Clark
Global group of banks launch drive to develop multi-trillion dollar trade as an asset class

Banking Global group of banks launch drive to develop multi-trillion dollar trade as an asset class

4w Austin Clark