Given the security industry’s increased use of information technology and the constant evolution of cyber threats, cybersecurity will continue to demand significant attention from regulators and industry participants in the coming year. Recent cases indicate the significant business, financial, and reputational consequences of a cyber breach, as well as the importance for securities firms and market participants to demonstrate compliance and preparation in this area.
In recent years, cyber threats have evolved from the theft of personal information to extortion attempts, where cyber criminals lock up or encrypt an entity’s data using malware and literally hold it hostage for a ransom. Similarly, cyber crooks can bombard an entity’s online services through a distributed denial of service or “DDoS” attack, rendering the services unavailable to customers, also in order to seek a ransom. Cyber criminals have also compromised the systems of securities industry participants to steal information used to commit other crimes, such as insider trading.
Click on above pdf to read entire article.