Invest
Cyber threats growing in frequency, sophistication
Australian lenders and super funds have not yet suffered significant losses from a cyber attack, but they need to practice “continued vigilance” as attacks increase in frequency and sophistication.

Cyber threats growing in frequency, sophistication
Australian lenders and super funds have not yet suffered significant losses from a cyber attack, but they need to practice “continued vigilance” as attacks increase in frequency and sophistication.

The latest insight from the Australian Prudential Regulation Authority (APRA) has revealed that while Aussie banks, lenders, health insurers and super funds have not suffered significant hits from cyber attacks, they need to be constantly on alert.
“Institutions must recognise there is no ‘finish line’ for cyber risk management, which requires ongoing vigilance, improvement, investment and oversight,” APRA said, revealing that leaking of sensitive data and phishing attacks were major concerns,” the regulator said.
“Organised crime remained industry’s greatest cyber concern. In APRA’s view, entities must consider both external and internal threats, with internal threats able to more easily bypass perimeter and other controls. Vigilance over access management (particularly privileged access) and effective oversight of controls at trusted third parties and offshore locations is essential.”
It highlighted the six most common types of cyber attacks reported by APRA-regulated institutions and called for a “strategic focus on cyber resilience”.
Cyber attacks in which digital services are “overwhelmed” by fake requests, thus blocking legitimate users’ access and the use of ransomware and other malware were the most common attacks.
However, hacking of internet facing platforms in which attackers executed commands to create and delete files, leakage of sensitive data via employees’ external email addresses and phishing attacks also made the list.
“In one instance, online banking credentials used by an entity’s finance department were compromised,” APRA said about the phishing attacks.
“An unknown third party used these credentials to change recipient details for an existing payment, but ‘maker-checker’ controls detected the unauthorised change before payment was made.”
APRA argued that this highlights the importance of customer and staff awareness about cyber safety and the appropriate fraud stop loss controls.
However, the regulator also registered the uptake in cyber insurance policies. Seventy-four per cent of the entities surveyed had a policy while 17 per cent were considering taking up a policy in the coming year.
While some had liability limits in excess of $500 million, most limits tended to stay between $1 million and $100 million.
“Cyber risk management requires ongoing vigilance, improvement, investment and oversight,” APRA continued, warning that no entity can guard itself against “every conceivable threat”.
It called on entities to strengthen or establish preventative and detective measures grounded in intelligence and risk awareness.
“While cyber insurance is useful, it is an evolving area and cannot always redress the reputational and other damage resulting from a high-impact cyber incident,” APRA said.
“Basic cyber hygiene, including a disciplined approach to maintaining the health of information assets, vigilance regarding access management (particularly privileged access) and oversight of controls at trusted third parties, are essential so as not to undermine strategic security investments or unnecessarily increase risk.”
According to a survey by security software company CyberArk, 50 per cent of organisations did not "fully inform" customers of data breaches.
The survey, released in mid-December, also revealed that 53 per cent of Australian respondents do not believe the organisations they use would be "completely prepared for a breach investigation".
Additionally, 41 per cent of respondents said they didn't have a sufficient knowledge on organisations' security policies.
CyberArk regional director, Australia and New Zealand, Matthew Brazier said, “As we’ve seen in incidents at Yahoo!, Uber and more, companies have a tendency to downplay breaches either through complete non-disclosure of events, or by only partially disclosing the extent to which systems and data have been breached.
“If it continues, this approach will have tangible consequences in 2018. The Notifiable Data Breaches legislation comes into force from 22 February 2018, and with it considerable fines for lack of compliance."
The Notifiable Data Breaches scheme includes an obligation for organisations to notify individuals whose data was involved in a data breach, along with fines for compliance failures.
"What’s concerning about CyberArk’s findings is that poor security practices continue to be upheld, despite the increased awareness of cyber security risks and the prevalence of high profile cyber attacks in the headlines," Mr Brazier concluded.

Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. ...Read more

Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. ...Read more

Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. ...Read more

Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. ...Read more

Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. ...Read more

Spending
Sydney ranks among top data centre markets in the world
Sydney ranked eighth globally and clinched the third spot in the Asia-Pacific data centre market as the industry continues to expand at a breakneck speed. ...Read more

Spending
The trends driving consumer change in 2022
Global research has provided insight into the top consumer trends for the 2022 calendar year. ...Read more

Spending
Household spending takes a hit after strong December
Strong spending over the Christmas shopping period in December has been followed by a weaker January. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. ...Read more

Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. ...Read more

Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. ...Read more

Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. ...Read more

Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. ...Read more

Spending
Sydney ranks among top data centre markets in the world
Sydney ranked eighth globally and clinched the third spot in the Asia-Pacific data centre market as the industry continues to expand at a breakneck speed. ...Read more

Spending
The trends driving consumer change in 2022
Global research has provided insight into the top consumer trends for the 2022 calendar year. ...Read more

Spending
Household spending takes a hit after strong December
Strong spending over the Christmas shopping period in December has been followed by a weaker January. ...Read more