Mayer Brown Study Shows Finance Sector's Cybersecurity Fears

With digital operations dominating business operations, the possibility for a cyber breach are increasing, and a recent study by law firm Mayer Brown shows financial services firms are left lacking.

The study, titled "The Next Organization", surveyed 197 leaders from the financial services sector and identified cybersecurity as a key factor in building an organisation fit for the future. 

Nearly eight in 10 leaders of financial services firms said they are unable to plan for the future due to concerns about their organisation's ability to withstand cyberattacks.

Finance’s cyber concern

A staggering 79% of financial institutions and 77% of investment firms said that vulnerability to cyberattacks ranks as a top factor impacting their transformation plans.

This concern is not unfounded. According to recent statistics, cloud intrusions have surged by 75%, as reported by CrowdStrike. 

Cloud computing, with the added layer of AI, is a big part in companies being able to transform their operations. Yet, with financial data being some of the most heavily regulated, keeping any information off premise can result in risk.

Credit reporting agency Equifax, for instance, was compelled to pay over US$1bn in penalties following a major data breach in 2017, which affected 150 million consumers' data.

"More and more we're seeing companies, organisations, and nations falling victim to increasingly sophisticated cyberattacks,” Raj De, leader of Mayer Brown's global Cybersecurity & Data Privacy practice said. “There are a lot of moving parts here, and businesses must navigate the complex and evolving landscape of cybersecurity."

While there is clear recognition among financial services leaders of the importance of tech resilience, with 69% of financial institution leaders and 77% of investment firms agreeing on the importance of having strong defences against cyberattacks and staying on top of AI developments, there is a significant gap between aspiration and reality. 

72% of financial institution leaders and 73% of investment firm leaders admitted that their organisations are struggling to transform quickly enough in response to fast-moving AI developments

Despite the clear growing importance of cybersecurity, a study by Trend Micro reveals a concerning communication gap between IT security leaders and C-suites, highlighting how IT security leaders feel pressured to downplay the severity of cyber risks in the boardroom. 

Compiling this with a cyber insurance market that is often failing to meet the full cost of payouts following a breach shows that  the challenge ahead is a multifaceted one. 

Securing finance’s future 

Help is on the horizon, however. Although AI-powered cyber attacks have augmented attackers’ abilities to both increase the volume and sophistication of attacks, they can also be put to task defensively.

"AI powered cybersecurity tools and systems can provide more advanced data protection, diluting threats by recognising patterns, automating processes, and highlighting anomalies,” said Oliver Yaros, a partner at Mayer Brown. 

The study highlighted 77% of investment firms and 69% of financial institutions believe their organisation must demonstrate resilience against increasing cyberattacks and keeping ahead of AI developments.

Keeping on the front foot with technology could augment their defences, and if not get ahead, at least keep in tandem with the growing threat landscape. 

But this understanding does not equate to action. It is imperative that action is taken from their shortcomings. With cybersecurity now presenting a clear link to a company’s growth,   if financial firms haven’t woken up to the threat imperative, then maybe they will the financial one. 

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