The rapid transition to digital platforms by established banks in the Asia-Pacific region is outpacing their ability to protect against emerging cyber threats, according to an analysis by the Financial Services Information Sharing and Analysis Center (FS-ISAC).
Recent trends in financial services, such as the widespread adoption of cloud technologies, the rise of new fintech competitors, and the mainstream acceptance of cryptocurrencies, are compelling banks worldwide to quickly enhance their IT infrastructure. FS-ISAC highlights that this shift to digital opens firms up to various risks, including ransomware and supply chain attacks, alongside the resurgence of banking trojans and distributed denial of service (DDoS) threats.
A 2021 report from Check Point found that 75% of companies regard the security of their public cloud infrastructure as a major concern, with many still trying to tackle the unique security challenges posed by cloud technologies. The FS-ISAC’s 2021 Cyber Trends and Threats Review also pointed out additional significant challenges in the region, such as increased regulatory oversight of cyber risk management, difficulties in threat response, and a substantial shortage of cybersecurity talent.
According to FS-ISAC, financial institutions need to rethink their cybersecurity policies to adapt to an era characterized by hyperconnectivity, where cyber threats are pervasive. “As the digitalization of financial services across the Asia-Pacific region accelerates, firms must recognize the associated risks and take proactive measures to mitigate them,” stated Christophe Barel, managing director for the region at FS-ISAC. He emphasized that in 2021, third-party risks and ransomware remain central concerns, while the threats of DDoS attacks and trojans are re-emerging. Sharing intelligence both globally and among regional members can help firms understand the latest tactics employed by cybercriminals, as well as best practices for defense.
The risks are not confined to the Asia-Pacific region; they are present across all financial markets. Recently, G7 finance ministers and central bank governors participated in a cyber exercise focusing on cross-border cooperation in the event of a significant incident affecting the financial sector. During this virtual meeting, US Treasury Secretary Janet Yellen supported the renewal of the G7 Cyber Expert Group’s mandate, reaffirming the group’s commitment to combating ransomware and other malicious cyber activities within the financial services industry and beyond.