Cyber hacks reported to FCA by financial firms hit 69 in 2017

Figures from the Financial Conduct Authority (FCA) have revealed that the number of cyber incidents reported to the regulator by financial services firms went up to 69 in 2017.

This is up from 38 and 24 in 2015 and 2016 respectively.

Focusing on general insurance and protection, 2017 saw 11 cyber attacks reported compared to just one in the previous year.

The statistics, contained in a freedom of information response to audit, tax and consulting firm RSM, show that reported incidents take the following forms:

The numbers revealed that that reported incidents of loss of data resulting from hacking have risen from four in 2016 to 17 in 2017. There were also two separate incidents of ‘data leakage’ reported to the FCA.

The figures also show a rise in the number of incidents of financial loss resulting from malware infection. In total, there were four reported cases in 2017, up from just one in the previous year.

During 2017, the retail banking sector suffered the highest number of reported attacks (17), followed by retail lenders (16) and investment management firms (16). There were a further 11 incidents reported to the FCA by insurance firms.

Under-reporting
Steve Snaith, technology risk assurance partner at RSM said: “We have previously raised concerns that there is likely to be significant under-reporting of cyber-attacks by regulated financial services firms. Nevertheless, these new numbers do reveal some important trends.

“The jump in incidents of data loss resulting from hacking attacks should be particularly concerning to the financial services sector, given we are just months away from the new GDPR regime coming into force.”

He added: “GDPR should be one of the most pressing issues for the sector and regulated companies should heed the FCA’s recent warning that firms must improve their cyber resilience.

“Cyber-attacks are becoming increasingly sophisticated and are constantly evolving and adapting. One of the biggest challenges is trying to ensure that defensive controls keep up.”

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