A Cyber Attack Could Spark A Run On Banks

A cyber-attack on financial institutions could undermine consumer confidence and spark a run on the banks, warned a new report by the Monetary Authority of Singapore (MAS)

It noted that the level of confidence in the financial system is a significant factor in determining whether such an attack would lead to wider systemic problems.

"Because data integrity is key in the financial sector, the loss of confidence in the damage scenario could be very severe... especially if data manipulation has gone undetected for a prolonged period," said the report by the MAS.

It added that while banks can mitigate the impact of a cyber-attack by ensuring they are underpinned by healthy levels of capital, "the impact of a loss of confidence in a bank can be hard to estimate or predict". The report said: "A loss of confidence is likely to render the bank more vulnerable, with knock-on effects to the wider financial system. For instance, a loss of confidence in a bank could lead to a run on deposits."

It comes on the back of guidelines the Association of Banks in Singapore released earlier this month that aim to strengthen the financial sector's cyber resilience. They provide financial institutions with best practices on how to conduct attacks that test their defences by using the techniques employed by hackers.

Cyber threats are constantly changing and the perpetrators' motivations will continue to evolve, the MAS noted in the review, which was released last Friday.

"The relationship between cyber-attacks and financial stability is increasingly important to understand," it said, warning that no one is immune to such threats. The WannaCry ransomware campaign, for example, hit both companies and countries last year and disrupted operations across the world.

The MAS study considered a range of scenarios, including the theft of money and data from a bank, disruption of its client-facing, trading and payment systems, and the corruption of its database. It said attacks can be prevented from causing systemic problems if the Government works with banks to coordinate crisis communication to ensure consistent messages.

Another avenue is to impose temporary market closures or bank holidays to stop panic spreading into the wider financial system. The authorities could also provide banks with liquidity to tide them over stresses.

Most attacks could have been prevented if institutions practiced basic cyber hygiene, the MAS said.
In September, it started a public consultation to make legally binding a set of six key cyber security steps to protect bank IT systems.

But financial institutions must also do their part by putting in place business continuity plans in case of an attack and to test them regularly in a realistic manner, it noted.

"Early detection and an effective incident response can help to contain the consequences and mitigate the impact of a cyber-attack not just within a bank, but also to the broader financial sector," the MAS said. It also encouraged the global financial industry to work together: 

"One institution's cyber incident can contribute to strengthening the defences of other institutions if information on cyber threats, incidents and lessons learnt are shared.

"Similar to information sharing between financial institutions, regulators stand to gain from sharing cyber threat information as it enhances their supervision and policymaking."

Straits Times:

You Might Also Read:

Singapore’s Giant Healthcare Hack:

Singapore: The Place To Launch Cyber Attacks From:

« US Dept. Of Energy CyberForce Student Competition
AI Will Monitor 3D Printing »

Infosecurity Europe
CyberSecurity Jobsite
Perimeter 81

Directory of Suppliers

Clayden Law

Clayden Law

Clayden Law advise global businesses that buy and sell technology products and services. We are experts in information technology, data privacy and cybersecurity law.

DigitalStakeout

DigitalStakeout

DigitalStakeout enables cyber security professionals to reduce cyber risk to their organization with proactive security solutions, providing immediate improvement in security posture and ROI.

MIRACL

MIRACL

MIRACL provides the world’s only single step Multi-Factor Authentication (MFA) which can replace passwords on 100% of mobiles, desktops or even Smart TVs.

Syxsense

Syxsense

Syxsense brings together endpoint management and security for greater efficiency and collaboration between IT management and security teams.

ZenGRC

ZenGRC

ZenGRC (formerly Reciprocity) is a leader in the GRC SaaS landscape, offering robust and intuitive products designed to make compliance straightforward and efficient.

National Trading Standards eCrime Team (NTSeCT) - United Kingdom

National Trading Standards eCrime Team (NTSeCT) - United Kingdom

The National Trading Standards eCrime Team tackles online consumer scams, rip-offs and fraud, as well as those committed by text or email.

Zix

Zix

Zix offers secure email encryption, threat protection, archiving, DLP and BYOD security for hospitals, financial services, government, and more.

Cyacomb

Cyacomb

Cyacomb (formerly Cyan Forensics) provides digital forensics software to help police forces find evidence on computers many times faster than before.

WetStone Technologies

WetStone Technologies

WetStone develops software solutions that support investigators and analysts engaged in eCrime Investigation, eForensics and incident response activities.

Network Box

Network Box

Network Box is one of the world's leading Managed Security Service Providers.

Rippleshot

Rippleshot

Rippleshot is a fraud analytics firm that detects mass card compromises faster, allowing issuers to execute more proactive fraud detection strategies.

EBRAND Services

EBRAND Services

EBRAND, the European experts for brand protection on the Internet. We offer a full set of services including cybermonitoring, fighting counterfeiting offences and online security.

Cyber Lockout

Cyber Lockout

Comprehensive ransomware insurance and preventative cybersecurity technology solution, working together to help protect businesses 24/7/365.

GovernmentCIO

GovernmentCIO

GovernmentCIO was founded with a single purpose: to transform government IT. We are thought leaders in data analytics, machine learning, cybersecurity and IT transformation.

BluescreenIT (BIT)

BluescreenIT (BIT)

BluescreenIT is an IT Security Consultancy and IT and Cyber Security Training company supporting industry, local authorities, MoD and governmental IT departments.

Prevasio

Prevasio

Prevasio is a next-gen Cloud Security Posture Management (CSPM) with a built-in Vulnerability and Anti-Malware Scan for Containers.

AnzenSage

AnzenSage

AnzenSage is a cybersecurity advisory consultancy specializing in security risk resilience for the food sector: agriculture, food manufacturing, food supply chain, vineyards, and wineries.

RealDefense

RealDefense

RealDefense develops and markets various privacy, security and optimization technologies and services for consumers and small businesses.

GitLab

GitLab

GitLab is a complete DevOps platform, delivered as a single application, fundamentally changing the way Development, Security, and Ops teams collaborate and build software.

TeamT5

TeamT5

TeamT5 Inc. is a leading cybersecurity company dedicated to cyber threat research and solutions.

EasySec Solutions

EasySec Solutions

EasySec Solutions provides a cyber-security platform, based on a combination of the zero trust model and the software-defined security management.