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. READ MORE AT www.clubsibos.com 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?