Collaboration key to fight financial cyber assaults

In 2014, JP Morgan — the biggest US bank by assets — was targeted by cyber criminals. Even though no cash could be siphoned off, the attack left names, addresses and crucial information of its 76 million customers exposed. Alarmed over the incident, the bank is now pumping $600 million into cybersecurity. Similarly, Deutsche Bank has announced that it was trying to modernize its web-banking facilities to counter cyber threats by doubling its “digital factory” staff to 800.
On Tuesday, the G7 spelt out new guidelines to prevent cyberattacks as fresh threats from SWIFT interbank network came to the fore. A few months back, Bangladesh’s central bank heist — in which $81 million was stolen by an international racket of hackers — highlighted how highly vulnerable the financial
institutions were to cyber threats.
The growing digitization in the financial sector makes it imperative to have a robust mechanism by which the risks to the system is combatted. A cyberattack can rob a bank of millions of money and client database. Therefore, cybersecurity programmes that ensure hackers are repelled are required urgently.
To devise such programmes poses a huge challenge, because threat vectors are difficult to discern. The path or tool that hackers take is hard to identify. Morphing makes the task all the more difficult. Hence, a cyber defence plan calls for coordination between the various players in the financial sector. These stakeholders will have to share information with each other about the risks, chalk out comprehensive response plans and be prepared for counter attacks.
Eight bank biggies in the US have tied up to take on the hackers. They have
enhanced their cyber security tools. It is collaboration that holds the key to protection from cyber robbers. The G7’s ‘Fundamental Elements of Cybersecurity’ provides the roadmap towards coordinated cyber defence. While revving up the efforts to check such crimes, it is crucial that integration within the banking sector is bolstered. Every bank should assess its cyber strategy and cooperate with other banks in information sharing, crime detection and identification.
Following the Bangladesh heist, SWIFT said the incident was “not a single
occurrence, but a part of a wider and highly adaptive campaign targeting banks”. It is necessary that the financial system realizes the villain is getting smarter and changing mode and approach of assault. Now, a new malware threat Odinaff trojan has emerged. Computer security group Symantec warns that it’s being used by cybercriminals to spy on networks of financial venture to steal credentials and funds. Odinaff attackers find the infrastructure previously used in attacks handy. The SWIFT network known as Carbanak helps these criminals in carrying out a lucrative business.
There is no escaping the truth that cybercrime will take new forms in the near future. The banks need a system that can warn them way in advance before a
potential threat can strike and avert the danger. Since the criminals are strong and organized, the banks need to join hands to fight the common enemy. The boards of various financial institutions must set up a joint cell to collaborate and poll in their resources and experiences. Putting up a united front in this battle will pay. So more has to be invested in cyber protection.
While the financial institutions take up the onus of safeguarding its customers from cybercrimes, the consumers too should adopt cyber hygiene!