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Cyber attack - the $3,000bn threat: ALL institutions becoming more vulnerable

Fraud is most likely costing your company much more than you expect, see - ACFE report, and it is going to get worse, possibly far worse. The recent Mckinsey and World Economics research into current cyber risks, and their economic and strategic implications based on interviews and data from 200 enterprises, technology vendors and public agencies contributed to the core findings:

  • despite major investment, the global economy is not protected again cyber attacks - and it is getting worse
  • technology executives, agreed on seven practices that must be put in place, but rate their own company as poorly protected
  • cyber security is cross-functional issue, and is therefore a CEO issue and needs their active involvement.

The Financial Times report that. “Theft of information assets and intentional disruption of online processes are the most important technology risks that major institutions face, and the defenders are losing ground to the attackers. Nearly 80 per cent of technology executives said that they cannot keep up with attackers’ increasing sophistication. Many frontline practitioners said they are seeing the dissemination of sophisticated attack strategies from major nation-states to a broader array of criminals and hacktivists who have much more destructive ambitions.”

CEOs need to make it clear that they expect the following:

  • a granular assessment of existing capabilities and risks
  • understanding of the company’s most important assets and a clear approach on how the required protection will be provided
  • a road map for delivering a scalable, business-driven cybersecurity model
  • a well practised set of skills for responding to breaches across business functions.

Is treasury aware of the fraud threat?

At the recent ACT Cash Management Conference, in a survey of the attendees’ priorities fraud was not even mentioned: cash flow forecasting was 1st, and counter-party risk 2nd. If you take the above list of what CEOs should expect from the business, how many corporate treasurers could say they are ready with these system protection and processes in place?

CTMfile take: Fraud risk is mainly a hidden problem, until it comes up and hits your company/department. Yet it is potentially, the biggest problem facing treasury today, and is rapidly getting more serious. See these vital lists of best practices on fraud and cyber risk prevention: 1) ACFE report on how to deal with occupational fraud, 2) 10 steps to Cyber security from UK’s GCHQ, 3) Top 6 things you need to ask your bank about their cyber crime prevention procedures, and 4) The new cyber-security enterprise operating model.

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ID Systems & Services in Fraud Prevention
Minimizing Fraud Procedures