Cybersecurity Threats to Finance in Switzerland Worsen Amid Rise in Attacks

Zurich - The financial sector in Switzerland is increasingly vulnerable to cyber-attacks, with a recent survey by Deloitte revealing that nearly half of large Swiss companies have been victims of such attacks this year. These attacks have targeted various sectors, including government institutions, banks, and multinational corporations.

Rise in Attacks

The National Cyber Security Center has documented over 34,000 attacks in 2022 alone, triple the number since 2020. Hacking groups linked to China, Iran, and Russia are believed to be responsible for many of these attacks. Phishing attacks are a particular concern due to their ability to exploit vulnerabilities in existing IT systems.

Consequences of Attacks

The cost of a data breach in 2023 is estimated to be around CHF6 million per company, according to PwC, with larger companies suffering average damage of over CHF16.2 million. The attacks have resulted in significant disruptions to the operations of affected companies.

Switzerland’s Weak Defenses

Experts warn that Switzerland is ill-prepared to deal with the rising number of cyber-attacks, citing the country’s weak defenses relative to its peers in Europe. The Swiss government has attributed the rise in attacks to the pandemic and the conflict in Ukraine.

Steps Being Taken to Address Threats

Companies in Switzerland are taking steps to protect themselves by beefing up IT security and purchasing insurance against cybercrimes. However, experts warn that more needs to be done to address the growing threat of cyber-attacks.

Quotes

“The technical aspects of cybersecurity can be very complex, but they are never the real obstacle,” said Klaus Julisch, lead partner for the cyber practice of Deloitte Switzerland. “Rather, organisations get on the wrong path when they underestimate cyber risks and use ‘hope’ as their cyber strategy.”

New Federal Office to Address Cybersecurity Threats

In response to the growing threat, Switzerland’s National Cyber Security Centre will become a new federal office in 2024, reporting to the defence minister and receiving an increased budget of CHF14.5 million.