Banks called upon to protect themselves against cyber-risks

The Federal Financial Institutions Examination Council (FFIEC), a body gathering several American financial regulators, has invited banks to underwrite cyber insurance.

The risks associated with the digitization of transactions and data exchange are a threat to the due progress of financial institutions. Computer piracy of a bank entails drastic consequences, on the financial level as well as on the institution’s image.

The example of Equifax, an American credit agency, is clear testament to the scale of the phenomenon. The company that compiles and processes personal data of customers applying for loans had been the victim of a cyber attack during more than two months. Confidential data of more than 147 million customers had been hacked, that is, nearly half the American population.

Several other acts of large-scale cyber criminality, including ransomware, have been reported everywhere around the world, which makes cyber insurance underwriting indispensable in the all-out digital era.