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
Australians more proactive about their financial future
Australians are using the COVID-19 period to become more proactive about their money, new research has revealed. ...Read more
Spending
Buy a pair, give a pair claim costs $3.5m
Eyewear retailer Oscar Wylee has been ordered by the Federal Court to pay $3.5 million in penalties for misleading or deceptive conduct and making or misleading representations about its charitable do...Read more
Spending
Single mums can afford the basics due to pandemic: report
Australian single mothers are no longer skipping meals to feed their children, being forced to wear the poorest clothing or having to steal nappies as changes to social benefits due to the COVID-19 p...Read more
Spending
Why the iron price boom means you pay more for an iPhone
A strong Australian dollar spurred on by the high price of iron ore means Australians are now paying more for an iPhone relative to 12 months ago, new research has shown. ...Read more
Spending
Buy now, troubles later?
Almost one in three people who use buy now, pay later services is finding themselves in financial trouble, new research has found. ...Read more
Spending
Consumers push for locally made products
Australians are increasingly supporting locally produced products as the COVID-19 pandemic revealed weaknesses in the Australian economy as well as an over-reliance on foreign trading partners, accord...Read more
Spending
Petrol prices tumble but record gross margins mean you pay more
The average petrol price in the June quarter fell to its lowest level in 21 years in real inflation-adjusted terms as a result of the recent lockdowns and geopolitical tensions, but gross retail margi...Read more
Spending
Consumers’ intent to spend rises despite COVID restrictions
Australians’ intentions to spend have increased during July, despite lockdowns and border restrictions slowing down consumer spending, new research has shown. ...Read more
Spending
Australians more proactive about their financial future
Australians are using the COVID-19 period to become more proactive about their money, new research has revealed. ...Read more
Spending
Buy a pair, give a pair claim costs $3.5m
Eyewear retailer Oscar Wylee has been ordered by the Federal Court to pay $3.5 million in penalties for misleading or deceptive conduct and making or misleading representations about its charitable do...Read more
Spending
Single mums can afford the basics due to pandemic: report
Australian single mothers are no longer skipping meals to feed their children, being forced to wear the poorest clothing or having to steal nappies as changes to social benefits due to the COVID-19 p...Read more
Spending
Why the iron price boom means you pay more for an iPhone
A strong Australian dollar spurred on by the high price of iron ore means Australians are now paying more for an iPhone relative to 12 months ago, new research has shown. ...Read more
Spending
Buy now, troubles later?
Almost one in three people who use buy now, pay later services is finding themselves in financial trouble, new research has found. ...Read more
Spending
Consumers push for locally made products
Australians are increasingly supporting locally produced products as the COVID-19 pandemic revealed weaknesses in the Australian economy as well as an over-reliance on foreign trading partners, accord...Read more
Spending
Petrol prices tumble but record gross margins mean you pay more
The average petrol price in the June quarter fell to its lowest level in 21 years in real inflation-adjusted terms as a result of the recent lockdowns and geopolitical tensions, but gross retail margi...Read more
Spending
Consumers’ intent to spend rises despite COVID restrictions
Australians’ intentions to spend have increased during July, despite lockdowns and border restrictions slowing down consumer spending, new research has shown. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
