New York’s financial regulator Benjamin Lawsky warned that terrorists have the potential to conduct a systematic attack on the American financial system, reported CNBC. At the Bloomberg Link Most Influential Summit, Lawsky said a cyberterrorism attack could be as devastating as 9/11.
According to Reuters, Lawsky said cyberterrorism is the important issue the Department of Financial Services will work on in the next year. Most institutions in the banking sector have been under a cyber attack at some point within the past three years, said Reuters. It is being reported that banks and other regulators are trying to encourage banks to be more vigilant about cyber threats. Lawsky says that attacks will get more prevalent, larger in scope, and harder to detect.
The largest American financial institution, JP Morgan Chase, made headlines this year due to a cyber breach, according to the BBC. Credit card data thieves have successfully breached major retailers like Target, Home Depot, and Neiman Marcus. Forbes reports that 56 million cards were stolen from Home Depot, while 40 million cards were stolen from Target. At this point, consumers expect that retailers and financial institutions will experience a cyber attack, so some have responded by only using cash, or by sending their business to more trusted retailers.
Government agencies and private institutions should increase their cyber security to be safe from cyber terrorists. A cyberterrorism attack on major financial institutions, depending on how far-reaching and sophisticated the attack is, could significantly disrupt the US economy. Financial institutions will need to prioritize data security, which will require increased security budgets. However, the financial costs of a data breach, and the negative repercussions a security breach has on an institution’s public image, are a lot greater. According to the Center for Strategic and International Studies, the annual cost of cybercrime to the global economy is above $445 billion. On top of immediate financial losses, companies could need to downsize after paying for a cyber breach, which will also negatively impact the economy. CSIS reports that “losses from cybercrime could translate into more than 200,000 jobs lost in the US.” Government agencies and financial institutions can ultimately save money through cyber security that protects from cyber terrorist attacks.
Government agencies can invest in security software that has the capability to protect large amounts of private data. EiQ’s SecureVue software is designed to protect large enterprises and government agencies by continuously monitoring for threats. SecureVue features configuring monitoring and audit log management/SIEM. EiQ’s Software-as-a-Service products ensure that cyber security experts will be available 24/7 to remedy an issue should a data breach occur. With SecureVue, financial institutions can defend themselves from cyberterrorists.