Daily Management Review

Report: Banks security is threatened by remote working


The G20 Financial Stability Board believes that remote working has compromised the cybersecurity of banks and other financial institutions. In its report, cited by Reuters, the organisation called for stronger defences against increasing hacking attacks.

According to the report, the level of online fraud through phishing, malware or ransomware has increased significantly. In February 2020, for example, there were up to five thousand incidents per week; in April 2021, there were more than 200,000.

The board explained that most cybersecurity systems were not designed to operate fully remotely and therefore became particularly vulnerable to cyber threats during the pandemic.

Officials said COVID-19 was the first serious test of the tougher financial regulations that have been introduced since the 2008 global economic crisis. That said, almost all parts of the financial system have successfully navigated the challenges of the pandemic.
As employees of financial firms continue to work partially from home, the board recommends adjustments to cyber risk management, cyber incident reporting, rapid response and recovery measures. In addition, it is important to make the use of third-party services - cloud storage, for example - as secure as possible.

The board will publish a final report in October outlining the next steps to protect financial security. The organisation has already made proposals to strengthen the resilience of money market funds, which have been hit hard by the pandemic in the past year.

source: reuters.com