Club Sibos CS - 2018 - Q3 - Wednesday DIGITAL FINAL
Wednesday
Bringing the world to Sibos and Sibos to the world
Cyber criminals steal a march on banks
by Roland Tellzen
O
rganised crime, leveraging the dark web, is becoming far more
effective in collaboration and sharing data about how to attack
digital facilities and assets than those tasked with countering
such threats, Sibos delegates were told yesterday.
CEO of Russian cybersecurity organisation BI.Zone, Dmitry Samart-
sev, said the capacity of organised cybercriminals leveraging the
dark web is doubling every year. This is especially true in the current
climate of geopolitical turbulence, he said.
“All this geopolitical turbulence leads cybercrime gangs to attack more,
and a lot more of these attacks are successful,” he said. Samartsev esti-
mated cybercrime cost the global economy around $1 trillion in 2017.
Earlier in the session, independent security consultant, Troy Hunt,
posited three main scenarios for a potential ‘cyber 9/11’: a pervasive
and widespread outage of digital services from the internet through
to messaging platforms; an attack on professional services including
businesses and the banking and financial systems; and attacks on crit-
ical infrastructure including power plants and nuclear facilities.
“Basically, when things go wrong by natural purposes, it is indistin-
guishable from cyber attacks. But cyber events can take these events
and really amplify them”
While a majority of the audience and other panel members nomi-
nated nation states as the main instigators of a cyber event, Samartsev
said organised crime was still the bigger risk.
“The worst case scenario is when cyber criminals make several
attacks at once, say, starting with a DDOS and then following that
up with attacks on social networks,” he postulated. “It would enable
the domino effect of citizens then all simultaneously going to their
accounts to take their money out and put it under the mattress.
“That then starts trouble with liquidity and central banks, and then
you have the problem of cooperating across borders to fight it.”
He said the advantage enjoyed by cyber criminals on the dark web is
their ability and willingness to collaborate. “We need to do the same,
but the criminals are head of us,” he said. He lamented that police and
security agencies such as Interpol were not collaborating enough to
fight cyber threats. Geopolitical tensions were exacerbating this lack
of action.
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Heated discussion sparks age-old T2S debate
P
articipants involved in the Target2-Securities (T2S) settlement
platform have defended its creation and capabilities, amid ongoing
criticism of the time and money spent on it, writes Jon Watkins.
The decade-long building and implementation of the pan-European
settlement system came under fire at Sibos yesterday as market partici-
pants face up to the realities of the project in comparison to other market
initiatives and emerging technologies in the wider financial industry.
“Yes, it brings advantages but it’s a big effort, and then ten years later
we still have a fragmented CSD structure, we still have no solution for
corporate actions, we still have no harmonisation of issuance,” said John
van Verre, head of global custody at HSBC.
His comments echoed similar sentiments from Sibos 2017, when speak-
ers lamented that the industry had “come too far to change” in response
to notions of blockchain technology replacing the new settlement system.
However, some rushed to T2S’s defence, including Philip Brown,
co-chief executive officer at Clearstream, who said yesterday that T2S
“wasn’t the delivery of one settlement system, it was the replacement
of 27. I think we’ll look back on it in 2025 and be able to really gauge its
effect. By that time, we’ll see issuers issuing in a different way because of
the way T2S gives them access to a larger investor pool.”
Fiona Gallagher, global head of securities services & chief country offi-
cer Ireland, Deutsche Bank, said there was “an element of keeping faith”
with T2S as the industry caught up with itself. She admitted that T2S as
a whole hadn’t delivered what it needed to and it’s been painful, but the
industry should consider making smaller changes to “get things moving”.
READ MORE AT www.clubsibos.com
3 6 8 10
FASHIONING A NEW
MODEL IN RETAIL
PAYMENTS ASX MAKES A
GRANDMASTER MOVE VOYAGING INTO THE
FUTURE THE RACE THAT STOPS
THE NATION
ALL EYES ARE ON THE
AUSTRALIAN STOCK EXCHANGE
AS IT MOVES ITS SETTLEMENT
SYSTEM TO BLOCKCHAIN GOODBYE PAPER RECORDS
IN TRADE FINANCE, HELLO
BLOCKCHAIN ON THE FIRST TUESDAY OF
NOVEMBER AUSTRALIA STOPS TO
WATCH THE MELBOURNE CUP
CUSTOMER EXPERIENCE
DOMINATES RETAIL – WHAT ARE
BANKS DOING TO MAKE IT WORK?