Swiss Financial Market Supervisory Authority: „Cyber-attacks are the most serious operational hazard facing the financial system”

At its annual media conference, the Swiss Financial Market Supervisory Authority FINMA raises the issue of cybercrime prevention, calling for increased cooperation between different disciplines in this regard. Finma has identified cyber security risks as it chief policy concern for 2018.

Cyber-attacks pose the biggest threat to the Swiss financial system with risks from hacking incursions on the rise, watchdog FINMA warned on Tuesday, calling on Switzerland to step up its national defenses against the menace.

Technological change: cyber-risks must be taken seriously
FINMA CEO Mark Branson’s speech addressed the topic of innovation and technological change in the financial sector. He explained that new business models, particularly those relating to cryptocurrencies, entail both opportunities and risks for financial institutions and their clients.

Branson stated that „We want to see healthy competition through innovation, but not at the cost of the integrity of the Swiss financial sector.” He also mentioned the issue of cyber-risks, noting that the risk of cyber-attacks is increasing as technological change advances.

„The risks connected with these attacks are growing in sync with the pace of global digitalization. Cyber-attacks are the most serious operational hazard facing the financial system, and both the private sector and public authorities should take them extremely seriously”, warned Branson. With this in mind, he said, FINMA has strategically built up its know-how in this area. Branson called for more interaction between different disciplines both within the public sector and between the public and financial sectors as regards cyber-risks, concluding that „Working together achieves more than going it alone.”

He said on the whole Swiss banks seemed aware of the risks and were well equipped to deal with them, citing banks’ ability to repel around 100 attacks a day from “Retefe” malware attacks on ebanking systems, according to Reuters.

But as a country Switzerland was lagging behind others with major financial hubs that have set up cybersecurity competence centers or imposed system-wide tests of hackers’ ability to penetrate banking systems, he said.

Source: FINMA