Cyber Attacks on the Financial Sector – Assessing Risks

Financial service businesses, particularly small and medium sized ones, are vulnerable to attacks
by cyber-criminals. Few are prepared for this. Breaches of security of data, personal information,
confidential financial documents and connectivity to partner businesses can result in partial or
complete loss of business.

• Cyber-security is frequently easier to breach in smaller financial organizations than in larger ones.
• Hackers may gain access to systems through trusted advisors. Law firms are a common mark as they provide access to clients’ networks.
• Generally most defenses against hacking are not effective. Security breaches often go undiscovered for months and most are discovered by external parties not the targeted company itself.
• The trend in cyber-crime indicates that most companies will be hacked and many will be hacked again.