Finma raises the alarm: 'cyberattacks on the rise, AI is a risk' (cross-border guide)

Context

In a nutshell

• Finma has raised an alarm about the growing risk of cyberattacks. - The supervisory agency has warned that artificial intelligence is a danger for the Swiss banking and insurance sector. - Finma's chairman of the board, Marlene Amstad, said cyberattacks have increased significantly.

Key facts

• What: Finma has raised an alarm about the growing risk of cyberattacks. - When: The alarm was raised by Marlene Amstad, Chairman of the Board of Directors of Finma. - Where: The alarm refers to the Swiss banking and insurance sector. - Who: Finma has warned that artificial intelligence is a danger for the industry. - Amount: The increase in cyberattacks has been called 'significant' by Marlene Amstad.

Finma has warned the Swiss banking and insurance sector against the growing dangers related to artificial intelligence and cybersecurity. The chairman of the board of directors, Marlene Amstad, said that cyber attacks have increased significantly and that artificial intelligence is a danger to the industry.

The Current Situation According to Finma statistics, over 1000 cyber-attacks against Swiss banks and insurers have been recorded in the last 12 months. This increase was defined as "significant" by the Chairman of the Board

Operational details

Finma has warned that artificial intelligence is a danger to the Swiss banking and insurance sector. The chairman of the board of directors, Marlene Amstad, said that cyber attacks have increased significantly and that artificial intelligence is a danger to the industry.

"The situation is worrying and requires an urgent response," said Marlene Amstad. “Cyberattacks have increased by 30% in the last 12 months and we are concerned about the ability of banks and insurers to protect themselves from these threats.”

According to data from Finma, 70% of Swiss banks have suffered cyber attacks in the last 12 months, with an average cost of CHF 250,000 per attack. The city of Geneva has been particularly hard hit, with 5 banks having suffered cyberattacks in the last 6 months.

Finma also said that artificial intelligence is a danger to the banking and insurance sector. “Artificial intelligence can be used to create cyberattacks that are more sophisticated and difficult to prevent,” said Marlene Amstad.

To address this issue, Finma has published an operational checklist for Swiss banks and insurers. The checklist includes 10 points, including:

• Implement a robust and up-to-date cybersecurity system
• Train employees on cybersecurity
• Monitor computer systems in real time

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Key points

To reduce the risks of a systemic collapse, Finma has directly held banks accountable, which must keep their operational risks under control, especially those related to third-party suppliers. Finma itself is equipping itself, enhancing its internal artificial intelligence applications and intensifying international collaboration. Finma warned that cyberattacks are on the rise and that artificial intelligence (AI) is a growing risk for Swiss financial institutions. “Data protection and cybersecurity have become an important priority for Finma,” said Finma Director Marlene Amrein. “Artificial intelligence can help identify and prevent risks, but it can also be used by attackers to create vulnerabilities.” Finma has established that Swiss banks must keep their operational risks under control, especially those related to third-party suppliers. This means that banks need to carefully assess the risks associated with IT service providers, such as cloud computing providers or risk management software providers. For example, bank UBS reported that it invested CHF 100 million in 2022 to improve data security and customer protection. The bank has also implemented an AI-based risk management system to identify and prevent risks. Finma has also determined that banks Finma has established that Swiss banks must cooperate with financial authorities and other financial institutions to reduce the risks of cyber-attacks and systemic collapse. “Collaboration between financial authorities and other financial institutions is essential to reduce the risks of cyberattacks and systemic collapse,” said Amrein.

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Source: swissinfo.ch