Financial Crime World

Malta’s Financial Institutions Urged to Prioritize Cybersecurity Measures Amid Growing Threats

Introduction

Cybersecurity threats are becoming an increasingly major concern for financial institutions worldwide, including those based in Malta. In this article, we will explore the growing threat of cybercrime and provide recommendations on how financial institutions can prioritize cybersecurity measures to mitigate these risks.

The Growing Threat of Cybercrime

According to a report by PricewaterhouseCoopers, cybersecurity is expected to be one of the top risks facing institutions in the financial services sector. The threat posed by cybercrime is unlikely to diminish in the future, driven by factors such as:

  • Use of third-party vendors
  • Rapidly evolving technologies
  • Cross-border data exchanges
  • Increased mobile technology adoption

The Internet of Things (IoT) also brings new risks and challenges to cybersecurity, particularly with its increasing integration into daily life.

Cybersecurity Challenges in Malta

In Malta, pilot projects involving the pairing of Artificial Intelligence with IoT are already underway in various sectors, including:

  • Traffic management
  • Education
  • Health
  • Customer care
  • Tourism
  • Water and electricity management

While this technology has potential benefits, it also increases the risk of unauthorized access and violation of consumer privacy due to pervasive data collection and advanced analytics capabilities.

The Appeal of Financial Institutions to Cybercriminals

Cybercrime is making financial institutions more appealing than ever, with sophisticated threats becoming increasingly common. The Bangladesh cyber heist of 2016, which saw nearly $1 billion transferred through the SWIFT network, is a prime example of this.

Recommendations for Financial Institutions in Malta

To combat these threats, financial institutions in Malta are advised to focus on:

  • Proactively managing cyber-risk and regulation
  • Building and executing strategic cybersecurity roadmaps
  • Implementing tailored cyber-protection programs
  • Developing incident response plans
  • Recruiting key talent
  • Establishing reporting requirements for cybersecurity

New tools can also be used to combat cyber threats, including state-of-the-art mining tools and technologies that detect security and fraud anomalies. Technology can be deployed to prevent or reduce the impact of cyber risks, depending on a company’s risk assessment and risk appetite.

The Importance of Cybersecurity in Malta

The Malta Financial Services Authority (MFSA) has emphasized that cybersecurity should become a priority for financial services entities, recognizing it as one of its core supervisory agenda items for the coming years. With the right tools and practices in place, financial institutions can quickly discover and address cyber threats, avoiding financial damage, bad publicity, and loss of trust amongst customers.

Conclusion

In light of these concerns, institutions in Malta are advised to shift their focus from controls- and compliance-based security models to more proactive approaches that prioritize enterprise and business risk management. By doing so, they can better protect themselves against evolving cyber threats and maintain public trust.