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Banks Face Cybercrime Wave As Tougher Regulations Loom

January 24, 2017 , Law360

Mark YoungJennifer Martin, and Ian Hargreaves are quoted in a Law360 article regarding the high level of cyberattacks on the financial services industry and the resulting regulatory pressures. According to Young, “The GDPR [General Data Protection Regulation] is a massive text with groundbreaking change in the data privacy area, in terms of compliance requirements and the new personal data breach notification rule.”

Martin says the reason banks are forming security teams and building defense centers is that the sector has become defined in the same way as power grids. “If you want to disrupt the financial industry and economy, attack the actual networks, the computer systems,” she adds. "There is a lot more focus from regulators, certainly in the U.S., as well as in the G-7 Nations, on threats to the financial services industry as a critical infrastructure."

Commenting on the role of the Financial Conduct Authority (FCA), Hargreaves says, “The FCA has data security as a main priority going forward. It’s clear in their business plan and recent messages to the sector.” He continues, "They are increasingly concerned about attacks; they are aware of the potential impact of such threats not only in relation to market integrity but to the nation state itself.” He says, “The FCA is now getting the message out more forcefully; the fines are likely to increase.” Hargreaves adds, “It’s a significant development, some would say overdue, but they are addressing the issues as are many financial institutions.”

 

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