Securities exchanges face cyber threats
More than half of the world's security exchanges such as the Australian Securities Exchange (ASX) have been the subject of cyber attack over the past 12 months, according to new data published by the International Organisation of Securities Commissions (IOSCO).
In a working paper dealing with cyber-crime, securities markets and systemic risk, IOSCO noted that while, thus far, those cyber attacks had not proved critical, "certain types of cyber-crime constitute more than an ‘IT issue' or simple extension of financial crime".
"While cyber-crime in securities markets has not had systemic impacts so far, it is rapidly evolving in terms of actors, motives, complexity and frequency," the IOSCO working paper said. "The number of high-profile and critical ‘hits' is also increasing."
It said that under-estimation of the severity of this emerging risk might lay open securities markets to a black swan event.
"On the other hand, efforts to neutralise cyber-crime in securities markets can be assisted through high levels of awareness and a concerted cross-border, cross-sectoral, collaborative approach," the working paper said.
A survey which formed the foundation of the working paper found "a significant number of exchanges are already under attack with 53 per cent suffering an attack in the last year".
However it found that attacks tended to be disruptive in nature, rather than motivated by financial gain. "This distinguishes these cyber-crimes from traditional crimes in the financial sector such as fraud and theft," the working paper said.
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