Cybersecurity Threats and Their Consequences
Since the COVID-19 Outbreak, a rise in cyber attacks were recorded all over the world and most especially in the Asia Pacific Region where 59% of businesses have experienced a cyber incident. Technology is rapidly changing and cyber incidents are also getting more sophisticated in order to adapt to any system update or upgrade your business may perform in order to avoid them. Here are some of the top cybersecurity threats in recent years.
1. Phishing Attacks
In a phishing attack, a cybercriminal creates a fake website or email that appears to be from a legitimate company, like a bank or fintech company, to trick users into entering sensitive information such as passwords or financial data.
An organisation that is not protected by such an attack will be left to sustain severe financial losses, declines in market share, reputation and consumer trust. OCBC Bank in Singapore suffered a loss of at least $13.7 million due to phishing links that were sent to their clients that gave attackers access to the victim’s bank accounts and drain it of its contents. In addition to reimbursing 790 clients who were victimised, the Monetary Authority of Singapore (MAS) has imposed additional capital requirements amounting to approximately $330 million on OCBC bank.
2. Ransomware Attacks
Ransomware attacks are a type of malware that encrypts a victim’s data and demands payment, typically in cryptocurrency, in exchange for the decryption key. These attacks can have a devastating impact on fintech companies, which rely on access to sensitive financial data to operate. Last 2020, KuCoin, a Singapore crypto currency exchange that allows one to buy, sell and trade Bitcoin and other crypto currencies, confirmed large withdrawals of Bitcoin and Ethereum tokens from hot wallets which were then transferred to several crypto wallets.
Hot wallets are cryptocurrency management apps that are connected to the internet which are used to store assets that are being exchanged on the platform. After the discovery of the attack, the company immediately transferred the remaining funds to new wallets and abandoned the compromised ones. Later on, KuCoin would be able to recover 84% of the funds amounting to $239.45 million while the hackers escaped with $45.5 million.
3. DDoS Attacks
Distributed Denial of Service (DDoS) attacks are a type of cyberattack that floods a website or server with traffic, making it unavailable to users. These attacks can be used to disrupt fintech companies’ operations and prevent customers from accessing their accounts. Imperva’s 2021 DDoS Threat Landscape Report has found the Asia Pacific Region the top target for network DDoS attacks, making up 46% of all attacks.
DDoS attacks cause hours of downtime and one hour may cost the business up to $100k. DDoS attacks may also be used as distraction tactics as part of a wider multi-vector attack or as ransom threats wherein extortionists will demand payment to prevent launching a DDoS attack.
4. Supply Chain Attacks
Supply chain attacks occur when cybercriminals target third-party vendors or partners that provide services to fintech companies. By compromising a vendor or partner’s systems, attackers can gain access to sensitive data belonging to the fintech company. One example of a supply chain attack that affected fintech companies was the SolarWinds hack in 2020,. Attackers injected a backdoor into a software update of SolarWinds. The backdoor allowed attackers remote access to thousands of corporate and government servers which compromised several government agencies and private companies, including fintech firms. The global-scale attack led to many data breaches and security incidents.
Connect with Datasearch Consulting
Cybersecurity is a business risk
A cybersecurity breach can result in direct financial losses, such as the cost of investigation, remediation, and legal fees. It was reported that the estimated cost of cybercrime worldwide in 2022 was 8.4 trillion USD. Additionally, businesses may suffer indirect financial losses, Forbes Insight reported that 46% of organisations suffered reputation and brand damage as a result of a third party security breach.
Cyber attacks can also cause operational disruptions, leading to downtime and lost productivity. In some cases, businesses may also face regulatory fines and penalties if they fail to comply with data protection laws. Finally, cybersecurity incidents can increase the cost of cyber insurance premiums and make it harder for businesses to obtain coverage.
Being Proactive is the Key
Most companies react to cyber incidents instead of anticipating them. Every industry is vulnerable and the financial consequences can be extreme. A great cybersecurity leader will ensure that processes are in place to investigate potential security threats and regularly review reports on the effectiveness of security policies and protocols. This is why hiring the right cybersecurity talent will help your business emerge a victor in this digital warfare against hackers and cyber attackers.
How Datasearch Consulting can help
Our recruiters have the expertise in the field of cybersecurity and can provide valuable insights into the market, salary ranges and best practices for recruiting top cybersecurity talents. With our access to a larger pool of candidates due to our vast network, finding the right fit for any organisation’s specific needs can be addressed in a time-saving and cost effective manner. Our proven track record of delivering high-quality hires is proof that we use a rigorous screening and selection process to ensure that we only put the best candidates forward for consideration.
Increase your chances of finding and hiring the right cybersecurity talent, Contact Datasearch Consulting today!
Brett Lockett is an Associate Director – Infrastructure, Cloud, Cyber Security & GRC at Datasearch Consulting, a leading executive recruitment firm specialising in the Cyber & Cloud Technology sectors.
You can download their FREE comprehensive guide on “The Complete Guide to Hiring Fintech & Data Talent – 5 Proven Steps to Secure the Best Candidates Possible” here. Alternatively you can view the Datasearch Consulting website or contact them directly on firstname.lastname@example.org for a more detailed discussion
Tech Industry to Drive Job Growth in 2023: How to Prepare for Booming Opportunities
As we approach the year 2023, it's important to take note of the industries that are expected to...
Top 8 Fintech Startups to Watch in Southeast Asia in 2023
Financial technology, or fintech, is a rapidly growing industry that is transforming the way we...
4 Key Benefits of Attending an In-Person Roundtable Event
Attending a B2B networking event can provide numerous benefits to senior technology leaders. From...