Cybercrime Threatens Swiss Financial Institutions: Interconnectivity Vulnerabilities on the Rise

The increasing reliance on information and communication technologies (ICTs) has created pronounced vulnerabilities among Swiss financial institutions, making them susceptible to outages and disruptions from cyberattacks. The COVID-19 pandemic has exacerbated this issue as employees working remotely have opened up new potential weak points for attackers.

Rise of Cyber Threats During the Lockdown

During the lockdown period, cyberattacks became more frequent and intense, with a surge in malware distribution and phishing emails. Many supervised financial institutions informed the Swiss Financial Market Supervisory Authority (FINMA) about distributed denial-of-service (DDoS) attacks on their infrastructure, which attempted to disrupt internet services by bombarding them with queries.

Types of Cyber Threats

• Malware Distribution: A surge in malware distribution and phishing emails were reported during the lockdown period.
• Distributed Denial-of-Service (DDoS) Attacks: Many financial institutions experienced DDoS attacks on their infrastructure, which attempted to disrupt internet services by bombarding them with queries.
• Blackmail Letters: Blackmail letters demanding bitcoin payments to prevent subsequent attacks were also reported.

Consequences of a Successful Cyberattack

A successful cyberattack can have severe consequences for the Swiss financial centre’s functioning, including:

• Delayed or impossible provision of services
• Reputational damage
• Potential harm to other financial institutions and the Swiss economy as a whole

Vulnerabilities in Interconnected Services

Financial-market infrastructures, critical-service providers, and systemically important financial institutions are particularly vulnerable due to their interconnected services. A successful attack on such an institution could harm other financial institutions and the Swiss economy as a whole, undermining confidence in the financial centre.

Prevention and Combat Strategies

The reputational damage from a cyberattack would be significant, highlighting the need for effective prevention and combat strategies against these emerging threats. As the Risk Monitor 2020 notes, the consequences of a successful cyberattack on the Swiss financial centre could be severe, making it essential to address these vulnerabilities proactively.