Cybercrime: A Growing Concern for Switzerland’s Financial Institutions

The Rising Threat of Cyber Attacks in the Swiss Financial Sector

The Swiss financial industry is facing an increasing number of cyber threats, which have become a top priority for regulators. According to the Swiss Financial Market Supervisory Authority (FINMA), cyber risks are one of the most significant operational risks facing financial institutions.

Key Statistics

• In 2022, FINMA reported that 95 cyber attacks of substantial importance had been reported since the introduction of clarifications on the duty to report cyber attacks in September 2020.
• The worst-affected institutions were banks, followed by asset managers and insurance companies.

The Vulnerability of the Swiss Financial Sector

The Swiss financial sector’s dependence on information communication technologies has made it increasingly vulnerable to cyber attacks, which can jeopardize the availability, confidentiality, and integrity of critical services and functions. FINMA considers cyber risks to be one of the seven top risks faced by the Swiss financial centre.

Regulatory Action

To address these concerns, FINMA has increased its supervision of cyber risks through:

• On-site audits
• Scenario analyses
• Enforcement action where necessary to protect the Swiss financial sector from cyber threats

The Role of Financial Institutions in Mitigating Cyber Risks

Financial institutions must strengthen their cybersecurity measures, including:

• Implementing robust incident response plans
• Conducting regular security audits