It is often said that practice makes perfect. Maybe that’s why a few of Canada’s larger financial institutions were recently asked to participate in what one regulator called a “severe but plausible cyber scenario.”
That scenario, as it was explained to the Senate of Canada’s banking committee on Feb. 28, “involved a data breach of customer information at a third party that led to a spike in bank accounts being hacked and drained of funds.”
The roundabout risk posed by a tech-related third party has the attention of those charged with keeping watch over the financial system. Recent comments from regulators suggest they are very aware of the intersection of big banks and big tech, which comprises a small group of heavyweights.
A PricewaterhouseCoopers report cites security as an ever-present risk in the banking business, similar to other sectors.
For instance, the Office of the Superintendent of Financial Institutions reviewed the companies’ responses to “assess the institutions’ detection and prevention capabilities, as well as how they might react to a quickly evolving cyber event,” said Judy Cameron, a senior director at the…
