A new report from SWIFT and BAE Systems has highlighted the potential cyber threats facing global financial markets, with the securities market one of the most at risk.
The study looks into different levels of susceptibility and threat faced by parts of the financial markets. It examines how infrastructure and participants could be exploited by cyber criminals to attack the securities, trade finance, foreign exchange, banking and payments markets.
The Evolving Advanced Cyber Threat to Financial Markets report uncovered that the securities space was susceptible to attach due to a large number of participants and infrastructures and the complex interactions involved.
Traders, brokers, investors, other stakeholders could be opening up potential vulnerabilities without realising, the report claims. Foreign exchanges and trade finance are other segments which are particularly at increased risk.
There are a number of recommendations made in the report in a bid to bolster protection.
The first is that ‘securities participants should embrace the value of checks, communication and data to support pre- and post-trade activities and stave off cyber threats.’ Alongside this, the securities infrastructure should improve and increase collaboration with participants so that risks can be better identified in common practices.
Other recommendations include banking and payment participants continue to bolster security controls and trade finance participants are encouraged to review and monitor areas of inherent trust.
BAE Systems financial services director Sanjay Samuel 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 cybercrime is evolving.
“Threats are becoming more intelligent, and criminals are increasingly focused on generating an ROA – return on attack – as quickly as possible.”
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