FINMA: Cyber attacks pose serious threat to financial system

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Cyber attacks are now the most serious threat facing the Swiss financial system, the CEO of the country's Financial Market Supervisory Authority (FINMA) said Tuesday. "The risks connected with these attacks are growing with the pace of global digitalization," Xinhua quoted the Chief Executive Mark Branson as saying.

"Cyber attacks are now the most serious operational hazard facing the financial system, and both the private sector and public authorities should take them extremely seriously," he said. Branson said Switzerland must do more to deal with the growing threat of cyber attacks as he cited cyber threats such as malware he named as "Retefe" which attacks e-banking systems, with around 100 attacks a day.

The FINMA head also cautioned that Switzerland is lagging on safety behind other financial centers such as the United States and Britain, which have central cyber security centers. "We also need a common platform. It would bring together specialists from different branches and strengthen collaboration between experts from the financial sector and the authorities," said Branson.

He explained that cybercrime is getting difficult to combat as banks outsource their activities, especially their back-office activities, which opens new fronts for hackers. The risks for the financial system are not limited to cybercrime, however, said Branson. He noted that new business models, particularly those relating to crypto currencies present opportunities and risks for financial institutions and their clients.

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