The Republic’s banks are potential targets for hackers, such as those who recently conducted cyberattacks against a Vietnamese bank and Bangladesh’s central bank using the Swift financial messaging system, and the Monetary Authority of Singapore (MAS) said yesterday it expects financial institutions here to maintain a high level of security for their IT systems.

A MAS spokesperson said financial institutions here are required to implement strong controls as set out in the MAS Technology Risk Management Guidelines. “This includes maintaining a high level of security for their critical IT systems, such as Swift. MAS will continue to monitor the security landscape and threats faced by the financial industry and provide guidance where necessary,” added the spokesperson.

The Vietnamese central bank prevented a cyber-heist on Vietnam’s Tien Phong Bank late last year through Swift, the global financial messaging network that banks use to move billions of dollars every day, reported Reuters yesterday.

Infrastructure from a third-party vendor that Tien Phong Bank had used to connect to the Swift system was possibly infected with malware, said the Vietnam central bank spokesperson, adding that the vendor’s servers were based in Singapore. The attempted heist used the same technique as the one hackers used to steal US$81 million (S$111 million) from Bangladesh’s central bank in February.

The three local banks — DBS, OCBC and UOB — said they are always on guard against cyber-attacks.

“The modus operandi of cyber-criminals morphs frequently. We therefore maintain a high level of vigilance over new or emerging cyber-threats. This means adopting a proactive and multi-dimensional approach that includes close monitoring, investing in our IT infrastructure, regular reviews of processes in our operations, employee training and the issuance of advisories to customers, among other measures. We have a Cyber Security Operations Centre that monitors the bank’s IT and cyber-security systems round the clock,” said Mr Patrick Chew, head of operational risk management at OCBC.

UOB managing director and head of group technology and operations Susan Hwee said: “We deploy multiple layers of security, and constantly monitor developments and enhance our systems to ensure that we manage technology risks in a systematic and consistent manner. The bank adheres to strict security standards which are aligned to industry best practices and regulatory guidelines to maintain a secure banking environment for all our customers.”

Meanwhile, a DBS spokesperson said: “Banking security is a priority for DBS and we are committed to providing a safe and secure online banking environment for our customers. We constantly review and strengthen our security defences against all cyber-threats, and will continue to monitor the situation and advisory from Swift.”

Financial institutions that handle large quantities of money are increasingly targeted by criminals and the problem is not unique to the Swift network used by 11,000 banks worldwide, said security experts.

Mr Andrey Dulkin, the senior director of Cyber Innovation at CyberArk Labs, noted that hackers had successfully penetrated the IT systems of many Russian banks and large organisations around the world in recent years.

Source:
courtesy of TODAY

by Angela Teng

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