News > FinTech

Bolstering cyber security

By NexChange

Last week’s cyber attack on TalkTalk, allegedly by a couple of teenagers, highlights the threat posed by hackers to businesses worldwide. The British telecoms group said the details of up to 1.2 million customers had been left vulnerable as it rushed to limit the damage to its reputation and business, according to the Financial Times. (paywall)

Now companies “are bracing themselves for an avalanche of cyber security regulation, as governments scramble to introduce rules forcing corporate groups to build stronger defences against catastrophic hacks,” says the FT.

Other high-profile incidents in the US, such as the assaults on Target in 2013 and Sony Pictures last year, “are forcing global authorities to consider tougher regulations”.

In Brussels, the European Parliament, 28 member states and the European Commission are working on a deal to create new data protection rules by December.

Proposed measures include a fine for businesses representing up to 5% of global turnover or €100 million — whichever is bigger — for a privacy breach.

“Such a fine would have wiped out most of TalkTalk’s £95 million ($143 million) of pre-tax profits last year,” notes the FT.

However, the paper points out that the financial industry has already spent hundreds of millions of dollars on its cyber security teams, hiring former intelligence officials from spy agencies and recruiting young techies from hacker clubs.
Photo: Charis Tsevis

Subscribe to our Newsletter

Be one of the first to experience the future of financial services