Data centres Open for business
The cloud, European fi nance increasingly agrees, is the future. But with most institutions rapidly dispensing with physical data centres and putting their faith into a few key giants like Microsoft and Amazon, any hack could spell disaster for a range of services. It’s surely for that reason that the European Union recently announced a raft of new rules obliging banks to show how quickly they could recover from any attack, with the requirements extending to ‘critical’ third-party partners. Tallha Abdulrazaq examines exactly what the so-called ‘DORA’ rules involve, what banks and tech fi rms can do to prepare for them – and how they speak to the growing power of cloud computing across the sector.
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t is every company’s worst nightmare – and especially so for financial institutions. A hacker, or more likely a collective of them, launches a cyber attack and disrupts a bank’s commercial activities. Websites go down through so-called distributed denial of service attacks (better known as DDoS). Sensitive corporate secrets are stolen through interception of sloppily defended IT systems, or sheer human ignorance compromising network security. Worse yet, private customer data is leaked onto the dark web, scooped up by other cyber criminals, and exposing banks to lawsuits for data breaches.
The list of things that can go wrong in the digital domain – and particularly when it comes to the world of finance – are enough to keep any c-suite executive up late at night, let alone one whose entire work
portfolio revolves around keeping a bank’s digital fortress walls sturdy and strong. And this is not idle handwringing either – just look at Capital One’s data breach in 2018. Hackers were able to access the personal information of over 100 million customers, including their names and social security numbers. Apart from hurting the bank’s reputation, it was also fined $80m by the Federal Trade Commission. European banks, for their part, have suffered similar embarrassment. In 2021, a website ‘misconfiguration’ meant certain Santander files were left vulnerable, while institutions as varied as UniCredit and BNP Paribas have suffered their own hacks. All these examples are a sobering reminder that, regardless of the resources they wield, even the largest financial institutions are not immune to
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Future Banking /
www.nsbanking.com
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Shutterstock.com
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