Banks May Be Failing to Spot Cyber Attacks, BOE Says in Report

Financial institutions may be wrongly identifying cyber attacks as information technology failures because they aren’t spending enough to detect hackers, the Bank of England said.

A rising tide of cyber attacks threatens financial stability and a breach at a major bank could cascade through the industry, the U.K. central bank warned in a report on Wednesday.

The Bank of England has introduced a series of tests designed to test a firm’s response to a cyber security incident. After meeting in June, the bank’s Financial Policy Committee recommended that all core financial firms take the so-called CBEST tests.

Companies also tended to view cyber security as a technological issue instead of recognizing the risks posed by employee behavior, according to the report.

The BOE said a cyber-risk survey revealed that there had been “underinvestment by firms in their ability to detect cyber attack, which creates a risk that firms react to attacks too slowly, or misdiagnose incidents of disruption as internal I.T. failures rather than deliberate attacks.”

Before it's here, it's on the Bloomberg Terminal. LEARN MORE