Switzerland’s Financial Sector on High Alert as Cybercrime Continues to Rise

Threats Loom Large in the Swiss Financial Sector

Zurich, Switzerland - The Swiss financial sector is facing a growing threat from cybercrime, with numerous successful attacks reported in recent years. According to the Swiss Financial Market Supervisory Authority (FINMA), cyber risks remain one of the biggest operational risks for supervised institutions.

Factors Contributing to the Rise of Cybercrime

• Increasing professionalization of criminals: Sophisticated attackers are becoming more skilled and better equipped, making it challenging for financial institutions to keep up with their evolving tactics.
• Shorter times between vulnerability announcements and exploitation: The rapid pace at which security vulnerabilities are discovered and exploited is putting pressure on institutions to respond quickly and effectively.

FINMA’s Supervisory Efforts

FINMA has been actively supervising cyber risks in Switzerland’s financial sector since 2018, with a focus on technology-driven risks such as the threat of cyberattacks and outsourcing-related risks. The agency has also stepped up its supervision of cyber risks through focused on-site audits and monitoring by audit firms.

Impact of Cybercrime on the Swiss Financial Sector

• Outages and disruptions to IT systems: The availability, confidentiality, and integrity of critical services and functions are jeopardized, leading to significant consequences for individual institutions and the functioning of the Swiss financial centre as a whole.
• Financial losses: Institutions may suffer substantial financial losses due to cybercrime, including direct costs related to incident response, recovery, and potential legal liabilities.

Recommendations for Financial Institutions

To address this growing threat, FINMA has been working closely with supervised institutions to enhance their cybersecurity measures. The agency recommends that institutions:

• Prioritize cybersecurity: Recognize the importance of robust security measures in protecting against potential attacks.
• Invest in security infrastructure: Develop and maintain a comprehensive security posture that includes regular updates, patches, and vulnerability management.
• Implement incident response plans: Establish clear procedures for responding to cyber incidents, including communication protocols and incident escalation.

Conclusion

The threat of cybercrime continues to rise in Switzerland’s financial sector, emphasizing the need for vigilance and proactive measures. FINMA will continue to closely monitor the situation and take enforcement action where necessary to ensure the stability and integrity of the Swiss financial system.