14 DAY TRIAL // The International Organization of Security Commissions (IOSCO), a leading policy forum for securities regulators, and the World Federation of Exchanges (WFE) have published a joint paper entitled “Cyber-crime, securities markets and systemic risk.”
According to the study, cybercrime has not had systemic impacts on the securities markets so far. However, considering that cyberthreats are evolving at a rapid pace, the severity of this emerging risk should not be underestimated.
As far as cyberattacks on exchanges are concerned, experts have found that 53% of exchanges have suffered an attack over the last year.
Attacks on exchanges are different from the traditional ones aimed at the financial sector because the attackers are not motivated by financial gain. Instead, the attacks are disruptive in nature.
Up until now, cybercriminals have focused their efforts on websites and online services that are not related to trading.
Furthermore, the study has found that most organizations are aware of the threats and they’re prepared to respond to cyberattacks.
The figures show that 93% of those who took part in IOSCO’s study have disaster recovery protocols in place. All organizations are confident that they can detect an attack within 48 hours.
“Around 93% of exchanges surveyed report that cyber-threats are discussed and understood by senior management and almost 90% report having in place internal plans and documentation addressing cyber-crime,” the report reads.
In addition, 22% of the surveyed exchanges have cybercrime insurance.
So what could be done to combat cybercriminals?
The set of recommendations includes more effective regulations to deter cybercriminals; information sharing, dedicated monitoring and training centers, and IT security awareness campaigns; and the promotion of international security standards and frameworks.
The complete “Cyber-crime, securities markets and systemic risk” paper is available here.