The threat of cybercrime to financial services

Abstract

The financial industry is one of the sectors which relies heavily on IT systems and technology to cater for the clients’ requirements 24/7. The rate of cyberattacks is on the increase in comparison to previous years. (PWC,2014) These recent cyberattack occurrences, have lead ECB (European Central Bank) to take action and prioritise such a harmful threat. (Buntinx, 2016) In this research, the focus will be on financial services in relation to cybercrime and how the latter can develop to be a major threat whilst identifying options available to such institutions as a counter-measure. The author will also delve into the full spectrum of cybercrime and any related activities. It is a well-known fact that the finance sector deals with sensitive data all the time and losing such data can be detrimental and harmful. The research will help to shed light on the security measures currently in place and evaluate their robustness. The information regarding the topic was mainly retrieved from reliable financial sources, together with interviews to local financial institutions. In addition, statistical data will be used to gather information from an international perspective rather than limiting the research to a local scenario only. One of the findings identified by this research is that cyberattacks usually go unreported, creating a bias in reportable data. Also, the author found that contrary to what is portrayed in media channels, financial institutions are currently the top target for attacks, risking both the financial institutions’ credibility and also the customers’ data and life savings. This study has confirmed suspects that in fact financial institutions are not well equipped to apprehend cyberattacks, particularly due to the ever-changing form that such attacks take.