Banks brace for slew of severe cyber attacks in 2015

How can banks survive?

Unscrupulous hackers have put banks in the crosshairs in 2015. Deloitte’s 2015 Banking Outlook states that with the acceleration in the number and severity of cyber attacks this year, banks should expect an even greater number of potential breaches in 2015.

The report notes that these threats will only become more pervasive, sophisticated, and disruptive in the coming year and beyond.

Even in instances where banks are not the direct targets of such cyber attacks, their integral role in the payment ecosystem leaves them entangled in the often messy aftermath of security breaches, including but not limited to economic and reputational losses.

Deloitte says that in 2015, banks are likely to add new defensive and offensive measures to their toolkits, borrowing from military and government agencies, given their vast experience in defence and intelligence. 

In addition, competition for specialised talent – in particular those with military and government backgrounds – will intensify, leading to increasing compensation costs for banks. 

“With the recent high-profile cyber attacks on some of the largest industry players in Southeast Asia, banks in the region will need to devote greater resources to enhancing their cyber security model,” said Thio Tse Gan, Deloitte Southeast Asia’s Cyber Security Leader. 

“Organisations should look into adopting new methods such as war gaming, attracting specialised talent, and increasing collaboration with other members of the ecosystem, as well as beefing up the intelligence apparatus to detect new threats. Budgetary issues are still likely to remain a concern for some banks, but it might be worthwhile to note that the financial and reputational costs of a cyber attack incident may well exceed the cost of its prevention,” he added.