Libero Marconi
Vishal Pandey
By Libero Marconi, Director with Alvarez & Marsal, and Vishal Pandey, Senior Director with Alvarez & Marsal’s
As the financial sector grows increasingly digitised, both cyber and data risks have developed in tandem, with the need to proactively combat such threats becoming paramount for financial institutions.
The adoption of cloud computing technology by financial institutions, alongside the outsourcing of key tasks supporting the digital banking service delivery to third party vendors, is allowing them to streamline operations and work seamlessly across borders. On the flip side, the migration opens up said firms to increased, and rapidly evolving, risk of cyberattacks and data breaches, as well as the reputational damage these bring about.
On top of this, the advent of digital banking has meant that customers themselves are increasingly at risk of being duped or defrauded, most commonly through phishing and malware. The latest data released by the Financial Crimes Enforcement Network, for example, shows that the number of ransomware-related transactions flagged by US banks increased by more than 100% from 2020 to 2021[1].
Read More…
