24 February 2018
visit www.ebaday.com

As cyber threat grows, EU regulators warn FS firms on IT budgets

03 April 2014  |  6846 views  |  0 EU flag

Europe's financial institutions have been told by regulators that they must protect their IT budgets in order to guard against the growing threat of cyber attacks.

The financial sector saw an uptick in cyber-attacks during 2013 as hackers probed IT system vulnerabilities in bids to access customer data for financial gain or to disrupt services.

With this in mind and the threat only likely to grow, IT systems should be safeguarded against any budget cuts, warns the Joint Committee of the European Supervisory Authorities (ESAs) in its latest report on the risks and vulnerabilities in the EU system.

Firms and their supervisors need to regularly assess their tech security and cyber resilience, integrating them into their risk models, says the committee, made up of representatives from the European Securities and Markets Agency, European Banking Agency and the European Insurance and Occupational Pensions Authority.

With cyber and IT risk a crucial part of operational risk, companies should consider holding capital against them, although the committee says that this is no substitute for good practice in the first place.

The report highlights the risks posed to IT security by outsourcing and reliance on cloud computing as well as consolidation in the financial sector as merged firms try to integrate systems.

Another concern is the rush to roll out new products - particularly in the mobile sphere - without carrying out sufficient testing.

As well as improving their internal controls, companies also need to work closely with each other and with regulators to set up clear frameworks and protocols for sharing information and best practice, concludes the report.

Read the full report:» Download the document now 1.3 mb (PDF File)

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Banks losing millions to new wave of ATM hacks - FFIEC

Banks losing millions to new wave of ATM hacks - FFIEC

03 April 2014  |  9955 views  |  4 comments | 8 tweets | 16 linkedin
FS firms hardest hit by cybercrime - PwC

FS firms hardest hit by cybercrime - PwC

05 March 2014  |  5461 views  |  1 comments | 8 tweets | 3 linkedin
Retail and financial services groups form cybersecurity partnership

Retail and financial services groups form cybersecurity partnership

14 February 2014  |  5506 views  |  0 comments | 4 tweets | 9 linkedin
White House sets out voluntary cybersecurity framework

White House sets out voluntary cybersecurity framework

13 February 2014  |  5905 views  |  0 comments | 12 tweets | 8 linkedin
Exchange group sets up cyber-security committee

Exchange group sets up cyber-security committee

12 December 2013  |  6857 views  |  0 comments | 4 tweets | 4 linkedin
London banks embark on 'Waking Shark 2' cyber war games

London banks embark on 'Waking Shark 2' cyber war games

12 November 2013  |  6174 views  |  0 comments | 3 linkedin
Sifma calls for better communication following cyber-attack simulation

Sifma calls for better communication following cyber-attack simulation

22 October 2013  |  4143 views  |  0 comments | 3 tweets | 1 linkedin
US bank regulator raises prospect of cyber-security legislation; Iosco also on guard

US bank regulator raises prospect of cyber-security legislation; Iosco also on guard

19 September 2013  |  11384 views  |  0 comments | 9 tweets | 12 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.swift.com/your-needs/instant-paymentsVisit https://www.capgemini.comvisit www.nextgenbanking.co.uk

Top topics

Most viewed Most shared
Ripple makes new connections to emerging marketsRipple makes new connections to emerging m...
11605 views comments | 16 tweets | 10 linkedin
hands typing furiouslySome Interesting Applications Of The Inter...
10272 views 3 | 9 tweets | 1 linkedin
Basel Committee outlines disruptive fintech scenariosBasel Committee outlines disruptive fintec...
8391 views comments | 15 tweets | 26 linkedin
Investment Association sets up fintech accelerator for asset managersInvestment Association sets up fintech acc...
7945 views comments | 19 tweets | 10 linkedin
R3 creates Legal Centre of Excellence for blockchain technolgyR3 creates Legal Centre of Excellence for...
7662 views comments | 10 tweets | 14 linkedin

Featured job

Find your next job