A recent report by City law firm RPC has claimed cyber-attacks on the UK’s financial services sector(which they define as including insurance, pensions, retail banking, retail investments, retail lending, wholesale financial markets and investment/fund management) increased by an incredible 480% during 2018.
Their research claims there were 145 individual data breaches reported in 2018 compared to just 25 in 2017. Insurance companies and banks were the worst hit having accounted 58 of those attacks while investment banks suffered the sharpest rise in cyber-attacks, from 23 in 2017 to 34 in 2018.
According to experts the reasons behind the surge could be the criminals’ belief that the financial services’ security systems aren’t as robust as they could be. Alternatively it could be that cyber-criminals are becoming increasingly bold as more and more successful attacks are reported in the media and as their own methods become more sophisticated.
However, the commentary in RPC’ report suggests the fact institutions are becoming better at reporting breaches is also likely to be a contributory factor particularly as, in RPC’s view, “the financial services industry is now taking cyber security more seriously than ever”.
Just how seriously the financial services are taking the rise in cyber-attacks is plain to see. The report also reveals the fasting growing area of the financial service industry is cyber-security with insurers, banks and wealth managers doing whatever they can to ensure their reputations aren’t weakened by the inevitable negative public perception a reported breach would create.
The findings also showed the highest number of attacks in a single month came in June 2018, somewhat ironically the month the new General Data Protection Regulation (GDPR) was introduced. This has to be of grave concern to the companies who were attacked as any organisation found to have failed to comply with GDPR could be fined either up to £17.7m or 4% of their organisation’s global turnover depending on which is higher.
Irrespective of how fast/hard the financial services are working to minimalise the threat of cyber-attacks going forward, our concern is the threat another increase poses to the people entrusting their financial futures to these institutions care. If - as has been our experience of working with the victims of cyber-crime to date– the criminals can continue to stay one step ahead of the security systems we could very well be looking at another rise between 2018 and 19.
If you are concerned your business may have been breached or if your own savings or investments have been affected as the result of a financial institution being attacked, please call us today on 020 7792 5649 or email us at This email address is being protected from spambots. You need JavaScript enabled to view it..
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