The securities market is one of the most at-risk areas from cyber attacks, according to Swift and BAE Systems in a recent report on how cyber attacks could target the world’s financial markets.
The securities market is at risk due to the large number of participants and infrastructures, as well as the complex interactions involved, it was found.
According to the report, weaknesses can be unknowingly introduced by traders, brokers, investors, other stakeholders, and the systems that all of these participants use. The study found that the foreign exchange and trade finance markets are also at risk.
The report advised security participants to embrace the value of checks, communication and data support pre- and post-trade activities and stave off cyber threats.
It was also noted that securities market infrastructures should collaborate with participants to identify risks in common practices to jointly defend market operations.
Additionally, the report advised banking payments participants to continue to strengthen security controls while building in protection for upstream systems.
The report encouraged trade participants to review and manage areas of inherent trust, which are at risk of cyber exploitation.
Sanjay Samuel, financial services director at BAE Systems, said: “It’s all too easy to be lulled into a false sense of security, and place too much faith in systems which cyber attackers can exploit. While the threat is greatest in the securities market, every part of the global financial services sector needs to be aware that cyber crime is evolving.”
“Threats are becoming more intelligent, and criminals are increasingly focused on generating a return on attack as quickly as possible. There’s a wide range of cyber threats out there, and that’s why a holistic approach is becoming critical.”
“Cyber security is no longer just a technical issue, as attackers are exploiting weaknesses in market operations, people and processes. So security needs to be embedded and coordinated across all levels and sectors of financial services organisations.”
Brett Lancaster, managing director, global head of customer security at SWIFT, commented: “Over recent years, SWIFT has made good progress supporting financial institutions in their fight against well-organised cyber attackers—but this report shows that now is not the time to sit back and take the this progress for granted.”
“As cyber criminals become ever more innovative and agile, we need to continue to work together to build even stronger defences.”
He added: “Through our Customer Security Programme, we have been assisting the payments, securities, trade finance and foreign exchange sectors to better protect their immediate surroundings, and have facilitated better information sharing to help equip the industry with the tools it needs to combat cyber crimes. This report is a timely reminder that we need to go further still to keep ahead of the criminals.”
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