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FinTech: The Threat Landscape and Promising Initiatives

Information Security Conference for the Financial Sector Doha, Qatar 5 November 2017

• In the first nine months of 2016, global investment

in FinTech reached 21 billion US D

• New investment has propelled innovation, which is

revolutionizing the FinTech sector

• Just as FinTech continues to evolve, so too does the

threat landscape and the stakes involved with not employing cybersecurity measures

(Financial S tability Board, 2016)

The FinTech landscape

FinTech: The Threat Landscape and Promising Initiatives Doha, Qatar 5 November 2017

Costs of FinTech Cyberattacks

• The costs of not employing sound cybersecurity

measures can be accrued in the following ways:

– Direct costs: the actual monetary values – Indirect costs: the amount of time, effort, and other

• rganizational resources devoted to cyberattack

resolutions – Opportunity costs: the lost business opportunities as a consequence of negative reputation, which usually occurs after the attack is publicly reported, including to victims

FinTech: The Threat Landscape and Promising Initiatives Doha, Qatar 5 November 2017

Costs of cyberattacks

• According t o t he Ponemon Inst it ute, companies incurred t he

following direct cost s aft er suffering a cybersecurit y breach:

Costs of cyberattacks

FinTech: The Threat Landscape and Promising Initiatives Doha, Qatar 5 November 2017

Possible Threats

Types of cybersecurity threats

FinTech: The Threat Landscape and Promising Initiatives Doha, Qatar 5 November 2017

• 1. Loss of financial data: Financial data breaches

are on the rise due to lack of data encryption for sensitive data

• 2. Internet of things and cloud

computing weaknesses: Easily hacked by cybercriminals

• 3. Third-party financial services: S
• me of the

services provided by third parties to financial institutions may be prone to cyber-attacks

Types of cybersecurity threats

FinTech: The Threat Landscape and Promising Initiatives Doha, Qatar 5 November 2017

5.Risks of mobile banking: More and more people are conducting banking transactions on their mobile phone. However, sensitive data stored on your mobile device is at a huge risk 6.Manipulation/Alteration of Data: Hackers intentionally change or manipulate the user/ organization’s data, in order to compromise it 7.Malware threats: The popularity of ‘ Bring Y

• ur Own Device’

(BYOD) increases the opportunity of affected devices being present over the connected network. Hidden malware in one device can then hij ack customer data from devices easily

Types of cybersecurity threats

FinTech: The Threat Landscape and Promising Initiatives Doha, Qatar 5 November 2017

8.Sophisticated spoofing attacks: Hackers can hij ack your bank’s website and steal user-related data 9.Chip/PIN attacks: attacker can capture what is called Track 2 data that's transmitted from the card to the card reader using a small Raspberry Pi computer. The captured data, which is sent unencrypted, can then be used to create a normal magstripe card for use

• n older, offline systems

10.A TM cyber-attacks: Massive financial losses to be incurred by such attacks

Possible Risks

What are the potential risks?

Cyber-threats Risks in market behaviour Cross-border legal issues Under-resourced and unskilled personnel National legal and regulatory risks Macro-financial risks

FinTech: The Threat Landscape and Promising Initiatives Doha, Qatar 5 November 2017

Further potential risks?

Rapid innovations Third party reliance

FinTech: The Threat Landscape and Promising Initiatives Doha, Qatar 5 November 2017

Promising Initiatives

Advancing cybersecurity

Machine learning Capacity-building to protect consumer data

Promising initiatives in the FinTech Sector

Awareness raising campaigns Compliance software Public-private partnerships Regulatory balance and coherence

FinTech: The Threat Landscape and Promising Initiatives Doha, Qatar 5 November 2017

UNICRI Cybersecurity and Technology Misuse



2004- 2007 2016-

• nwards

2013

Hackers Profiling Projeecct

2013- 2015

Cybercrime and the risks for the economy and enterprises at the European Union and Italian levels ePOOLICE “early Pursuit against Organizzed crime using envirOnmental scanning, the Law and IntelligenCE systems” Information Shharing and Public-Private Paarttnnerships SECURED SECURitty at the network Edge

2013- 2013- 2014- 2015 2016 2016

COURAGE Cyber Crime and Cyber Terrorism European Research Agenda UNICRI Strategic Engagement In Technology: Supporting The Fight Against Crime And Responding To The Misuse Of Technology

• Analyse emerging and future security risks;

Identify emerging technology to match security needs; Promote the use of technology based-solutions to increase security; Raise awareness and inform policy-makers about risks and solutions.

Common solutions Common solutions

Current UNICRI initiative: SIRIO-Security Improvements through Research, Technology and Innovation

Francesca Bosco UNICRI Programme Officer bosco@ unicri.it Twitter @ francibosco

FinTech: The Threat Landscape and Promising Initiatives Doha, Qatar 5 November 2017