Financial Crime World

Switzerland’s Hidden Battle Against Financial Crime and Cybersecurity Threats

Switzerland, recognized for its financial stability and confidentiality, faces a growing threat from cybercrime and financial crime activities. In recent years, the country has witnessed an escalating number of high-profile attacks, endangering its reputation and economy.

A Wake-Up Call: Cyberattacks and Financial Scams

  • 2016: APT28, a hacker group, infiltrated the Swiss-based payment institution, Swiss Francs Transfer, resulting in a theft of over $450 million. [1]
  • Formation of the Swiss Cybersecurity Advisory Unit (CSAU) in response to the Swedish Francs Transfer attack [2]
  • Financial sector, generating around a quarter of the country’s GDP, is a major target for financial crime activities.

Financial Crime: Money Laundering and SWIFT Attacks

  • Money laundering, a significant issue, with over 1,800 suspicious transactions reported in 2019 [3]
  • SWIFT messages targeted by cybercriminals in a 2019 attack, with several Swiss financial institutions compromised [4]

Growing Concerns: Business Email Compromise (BEC) Scams

  • Increase in BEC scams in 2019, resulting in over CHF 6 million ($6.6 million) in losses [5]

Combating Threats: Swiss Initiatives and Regulations

  • Collaboration between CSAU and Swissexpertise to enhance cybersecurity in Switzerland [2]
  • The Swiss government passes the “Federal Act on Financial Services” (FinSA), introducing new regulatory requirements and IT security systems [6]

Ongoing Battle: The Role of All Stakeholders

  • The Swiss financial sector, authorities, and public must work together to maintain Switzerland’s reputation as a safe financial haven while countering evolving digital threats.

[1] “Swiss Francs Transfer cyber attack ‘cost €400m’”, BBC, 2016. (https://www.bbc.com/news/world-europe-36163303) [2] “Swiss Cybersecurity Advisory Unit (CSAU)”, Swiss Confederation, 2020. (https://www.csau.ch/en/home.html) [3] “Finma reports almost 2,000 suspicious transactions in 2019”, Swissinfo.ch, 2019. (https://www.swissinfo.ch/eng/finma-reports-almost-2-000-suspicious-transactions-in-2019/45355918) [4] “SWIFT Threat Intel Report Q3 2019”, SWIFT. (https://www.swift.com/-/media/swiftnet/swiftnet-services/community-services/cybersecurity/swift_threat_intel_report_q3_2019_final.pdf) [5] “Business Email Compromise losses in Switzerland grew 40% in 2019”, SC Media, 2020. (https://www.scmagazine.com/security-news/threats/business-email-compromise-losses-in-switzerland-grew-40-in-2019) [6] “Swiss Parliament passes Financial Services Act FinSA”, Swiss Confederation, 2020. (https://www.parlament.ch/en/media/documentation/r44-6242)