Cyberattacks and financial institutions are a seemingly inevitable pair. While banks spend hundreds of millions of dollars to prevent attacks and keep data secure, the potential rewards still makes them a primary target for hackers. In this week’s news roundup we take a look at some recent financial attacks, their impact, and implications, and consider the value of cyber insurance for financial services institutions.
Morgan Stanley Discloses Cyberattack and Breach of Customer Information
In yet another supply chain attack Morgan Stanley disclosed a breach at a contractor resulted in the theft of customer information. According to an article in American Banker : “The bank said in a notice to affected clients that the cyber intrusion affected Guidehouse, a consulting company that Morgan Stanley uses to find current addresses for clients of its stock-plan business whose accounts had been inactive for long periods of time.”
Learn more about the attack here.
Could a Cyberattack Disrupt the Financial System?
This is the question posed by a recent article in the New York Times about hacking Wall Street. With recent evidence from hacks against Colonial Pipeline and meat processor, JBS, the short answer is more than likely, yes. But with banks like JP Morgan Chase spending over half a billion dollars on cybersecurity and a dedicated security team of over 3,000 employees, according to the article, why are cyberattacks still such a problem for the financial services sector?
You can read the article here.
It Might be Time to Invest in Cyber Insurance
With all these cyberattacks going on, is it the right time to consider cyber insurance? While the automatic reaction might be of “course!” there are many steps that organizations need to go through before they can buy a cyber insurance policy. Former CISO, Stan Gatewood shared in this article that the process of applying for cyber insurance requires financial services organizations to be aware, prepare, and invest in resilience.
Curious to know what Gatewood means? You can learn more and access a webinar here.