Financial Crime World

The State of Cybersecurity in the Swiss Financial Sector

Introduction

The Swiss financial sector has been facing an increasing number of cybersecurity threats and incidents. This white paper aims to discuss various aspects of these threats, including the business models used by attackers, the methods they employ, and the impact on the industry.

Business Models Used by Attackers

  • Ransomware as a Service (RaaS): A business model that allows less specialized attackers to carry out ransomware attacks. This model has become increasingly popular due to its ease of use and high potential returns.
  • Attack Methods: Threat actors use a variety of methods, such as ransomware, malware, and phishing, to target the financial sector.

Malware in the Banking Industry

  • Prevalence: Malicious software is widespread in the banking industry, with examples like FluBot, which targets customers via SMS links.
  • Impact: Malware accounts for 14 percent of reported cyber incidents, demonstrating its significant impact on the industry.

Phishing Attacks

  • Employee Training: Employee training courses are held quarterly to educate employees about phishing attacks, especially those with customer contact. This is crucial in preventing successful phishing attacks that can compromise sensitive information.
  • Statistics: Double extortion ransomware jumped by nearly 500% last year (CipherTrace), indicating a significant increase in the number of phishing attacks.

Targeted Industries

  • Banks and Financial Service Providers: Banks, financial service providers, and insurance companies are among the most targeted industries. This highlights the importance of robust cybersecurity measures in these sectors.
  • Card Issuers Prioritize Cybersecurity: Swiss card issuers prioritize cybersecurity measures, with:
    • Most card issuers evaluating their controls and security protocols annually with their own resources.
    • Nearly all card issuers monitoring the cybersecurity risks of their suppliers through manual evaluations.

Conclusion

The Swiss financial sector faces significant cybersecurity threats, including ransomware as a service, various attack methods, malware, phishing attacks, and targeted industries. Understanding these threats is crucial in developing effective countermeasures to protect sensitive information and maintain trust within the industry.