Banks to Focus on Cyber Security after Warning

Banks are not known for being forward when it comes to reporting attempted hacks, leaving the cyber security industry to provide details on the risks and challenges they face.

Therefore, a recent warning that one of the UK’s major banks will fail this year, due to a hack, is a big story and pressures banks to improve security.

Richard Benham, an expert in cyber security, spoke to the BBC when he fired a warning that a major UK-based bank would struggle to recover after a hack this year.

Benham said that a low confidence would lead to a mass of customers simultaneously withdrawing money, which would essentially mean that the bank would be breaking insolvency rules.

While one source expressed doubt that one of the major banks would fail over cyber security, he expects that banks will place more emphasis on it. The source said:

“Saying that a major bank will fail grabs attention, sure. But I don’t see a cyber attack bringing down a major bank, even if the attack is effective. At that point, the major bank becomes too systemic to fail.”

It is surprising that the banking sectors, of all sectors, have chosen to be lax when it comes to cyber security. All organisations should be aware of the dangers that it presents in 2017. Hopefully, this year will see the creation of more cyber security jobs as a sign that firms in Britain are sitting up and taking notice.