# Protecting the UK financial services sector from cyberattacks now and in 2023 Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-12-14 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Protecting the UK Financial Services Sector: Cybersecurity Meta Description: Discover the threats faced by UK financial services sector & how to defend against cyberattacks. Insights by Darren Guccione, CEO of Keeper Security. URL: https://financedigest.com/protecting-the-uk-financial-services-sector-from-cyberattacks-now-and-in-2023html ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1367011887-1736814722876-compressed.jpg) _![Darren Guccione, CEO and Co-Founder of Keeper Security](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/695-1736814722715-compressed.jpg)_ _By **Darren Guccione,** CEO and Co-Founder of Keeper Security_ The financial services sector is one of the UK’s greatest exports – in 2021, it contributed £173.6 billion to the UK economy, which amounts to 8.3% of total economic output.(1) Such a valuable asset demands a high level of protection. Cyberattacks are one of the most significant threats to the sector, with the potential to trigger a serious financial crisis, compromise digital records and transactions, and undermine trust in the overarching financial system. Organisations, therefore, have a duty to keep pace with bad actors by understanding how the [cybersecurity landscape is transforming and the harmful impacts on businesses if threats](https://www.financedigest.com/forescout-and-fireeye-expand-partnership-enabling-faster-response-to-cybersecurity-threats.html "FORESCOUT AND FIREEYE EXPAND PARTNERSHIP, ENABLING FASTER RESPONSE TO CYBERSECURITY THREATS") are not contained. This byline from **_Darren Guccione, CEO and Co-Founder of Keeper Security,_** will explore the current state of cybersecurity in the UK [financial services sector](https://www.financedigest.com/iot-for-the-financial-sector.html "IoT for the Financial Sector") and explore how IT leaders in the industry can combat rising threats – from investment in tools and training, to establishing a healthier company culture. **A [heavy price](https://www.financedigest.com/heavy-norwegian-gas-maintenance-adds-to-energy-price-pressure.html "Heavy Norwegian gas maintenance adds to energy price pressure") to pay** 2022 ushered in the most challenging economic climate we’ve seen in decades, yet cybercriminals are not slowing down as [businesses tighten their belts ahead of a recession](https://www.financedigest.com/german-businesses-expect-only-mild-recession-as-disruptions-ease.html "German businesses expect only mild recession as disruptions ease"). Our research reveals UK [financial services](https://www.financedigest.com/trends-in-the-financial-service-landscape-and-the-impact-on-fraud.html "Trends in the financial service landscape and the impact on fraud") organisations experienced an average of 39 cyberattacks in just the last 12 months – with one in 10 experiencing between 500 and 1,000 attacks. [Almost a quarter](https://www.financedigest.com/almost-a-quarter-of-uk-employees-havent-missed-anything-about-the-workplace.html "Almost a quarter of UK employees ‘haven’t missed anything’ about the workplace") (22%) experienced financial theft as a result of a cyberattack and, of those that had money stolen, 26% lost between £100,000 and £999,999. In a time of economic downturn, [businesses simply cannot afford to place themselves at risk](https://www.financedigest.com/aon-assists-freddie-mac-to-reach-5bn-risk-transfer-milestone-for-u-s-mortgage-credit-business.html "AON ASSISTS FREDDIE MAC TO REACH BN RISK TRANSFER MILESTONE FOR U.S. MORTGAGE CREDIT BUSINESS") of such a monetary haemorrhage. To make matters worse, the [financial damage can merely be the tip](https://www.financedigest.com/5-tips-for-financial-fitness-in-2021.html "5 tips for financial fitness in 2021") of the iceberg for businesses that fall victim to a cyberattack. Reputational damage and disruption to trading, [impacting their ability to do business](https://www.financedigest.com/how-technology-consultants-impact-business-growth.html "How Technology Consultants Impact Business Growth") overseas, can all inflict critical harm to a business in this turbulent economy. Alarmingly, almost a quarter (23%) of surveyed UK [financial services organisations reported a loss of business or contract as a result of a successful cyberattack – illustrating the need for everyone in the UK financial services sector](https://www.financedigest.com/financial-companies-delivering-better-value-for-customers-in-loyalty-programmes-compared-to-other-sectors.html "Financial companies delivering better value for customers in loyalty programmes compared to other sectors") to make a concerted effort to strengthen their cyber defences. [**Investment across the board**](https://www.financedigest.com/board-of-russias-avtovaz-approves-585-million-in-2023-investment-programme-ria-agency.html "Board of Russia’s AvtoVAZ approves 5 million in 2023 investment programme – RIA agency") Knowing where to start can be the most difficult part. 99% of [UK financial service organisations](https://www.financedigest.com/how-crowdsourcing-can-help-drive-the-benefits-of-advanced-analytics-in-financial-services.html "HOW CROWDSOURCING CAN HELP DRIVE THE BENEFITS OF ADVANCED ANALYTICS IN FINANCIAL SERVICES") surveyed as part of our study reported that cybersecurity was important to C-suite. Yet there are signs they might not be prepared for future threats, with just a quarter (23%) of IT [leaders in these same organisations feeling their business is ‘very-well prepared’](https://www.financedigest.com/top-7-new-tech-trends-for-2023-and-how-it-leaders-can-prepare-for-them.html "Top 7 New Tech Trends for 2023 and How IT Leaders Can Prepare for Them") to defend against cyberattacks. Often, the simplest approaches are the most effective, such as improved training for employees. Many staff in modern workplaces have not undergone even basic cybersecurity training, leading to a significant [skills gap](https://www.financedigest.com/navigating-the-global-technology-skills-gap-with-ai-moderated-upskilling.html "Navigating the Global Technology Skills Gap with AI-Moderated Upskilling") and lack of understanding around the massive cybersecurity risk associated with poor basic hygiene. [Cybersecurity training](https://www.financedigest.com/why-training-your-staff-is-key-in-spotting-the-warning-signs-of-a-cybersecurity-breach.html "Why training your staff is key in spotting the warning signs of a cybersecurity breach") should be a requirement and formal onboarding step for existing employees as well as new starters. We were encouraged to see that 78% of respondents in the [financial services sector](https://www.financedigest.com/overcoming-information-overload-in-the-financial-sector.html "OVERCOMING INFORMATION OVERLOAD IN THE FINANCIAL SECTOR") have invested in bringing on new cybersecurity personnel in the past year and, of the changes implemented over the past year, increasing training (59%) was at the top of the list. Beyond personnel, there is also a [need to invest in the tools that finance](https://www.financedigest.com/7-finance-career-options-to-consider-and-what-you-need-to-know-about-each.html "7 Finance Career Options to Consider and What You Need to Know About Each") companies are deploying as part of their cybersecurity strategy. [Nearly half](https://www.financedigest.com/nearly-half-of-parents-still-give-pocket-money-to-their-adult-children.html "Nearly half of parents still give pocket money to their adult children") of those surveyed agree that the accelerated digital transformation due to the COVID-19 pandemic has sometimes led to overlooked security practices. However, there are positive signs in terms of a willingness to [invest in cybersecurity](https://www.financedigest.com/large-investment-success-for-basingstoke-cybersecurity-start-up.html "Large investment success for Basingstoke cybersecurity start-up") defence. Of the IT leaders surveyed, we found high numbers of them intending to invest in password [management technology](https://www.financedigest.com/the-advanced-wound-management-technologies-market-to-grow-based-on-customized-digitization.html "The Advanced Wound Management Technologies Market to grow based on customized digitization") (46%), zero-trust architecture (36%) and privileged access management (PAM) tools (28%). **Looking inwards** It is important to note that the efficacy of budget increases and technological investments made by UK [financial services](https://www.financedigest.com/as-hackers-declare-cyberwarfare-financial-services-cannot-afford-to-be-complacent.html "As hackers declare cyberwarfare, financial services cannot afford to be complacent") will be limited if they ignore a crucial gap in their armoury. Many businesses are so preoccupied looking outward for danger, they forget that they also [face serious threats](https://www.financedigest.com/cup-holder-market-emerging-industries-challenges-and-threats-faced-by-key-vendors-and-global-business-outlook-till-2031.html "Cup Holder Market Emerging industries, Challenges and Threats Faced by Key Vendors and Global Business Outlook till 2031") from within. Keeper found that 86% of IT leaders in the UK financial services have either experienced a breach from within their organisation or are concerned about the prospect of one- and for good reason- with a worrying lack of knowledge about key [security](https://www.financedigest.com/post-brexit-uk-workers-can-have-financial-security.html "Post Brexit – UK workers CAN have financial security") concepts amongst financial services teams. The aforementioned training will help here, providing that [leaders set an example from the top](https://www.financedigest.com/young-leaders-forum-top-5-tips-from-jamal-edwards-mbe.html "Young Leaders Forum: Top 5 Tips from Jamal Edwards MBE"). It is evident that there is [work to be done in this area with 58% of financial](https://www.financedigest.com/turning-a-blind-eye-wont-work-for-financial-firms-as-the-fca-tightens-its-grip.html "TURNING A BLIND EYE WON’T WORK FOR FINANCIAL FIRMS AS THE FCA TIGHTENS ITS GRIP") IT leaders reporting that they’ve been aware of a cyberattack on their organisation, but kept it to themselves. If IT professionals want to protect against cyberattacks, they [need to change](https://www.financedigest.com/a-mindset-change-is-needed-in-the-financial-services-industry.html "A mindset change is needed in the financial services industry") this culture of secrecy. They [must work to cultivate an environment of trust](https://www.financedigest.com/2019-year-must-re-build-public-trust-finance.html "2019 is the year we must re-build public trust in finance"), transparency and accountability, in which every employee feels confident in stepping forward the moment an incident occurs. **Shoring up cybersecurity for the long term** The findings from our census report clearly demonstrate that IT leaders in financial services consider cybersecurity a top priority, though [future investment](https://www.financedigest.com/investing-in-the-city-thats-investing-in-itself-welcome-to-the-liverpool-of-the-future.html "INVESTING IN THE CITY THAT’S INVESTING IN ITSELF – WELCOME TO THE LIVERPOOL OF THE FUTURE!  ") is not being treated with the urgency it deserves. In challenging economic circumstances, the most effective [means of addressing cybercrime will be better management](https://www.financedigest.com/senior-managers-regime-what-does-it-mean-for-the-industry.html "SENIOR MANAGERS REGIME – WHAT DOES IT MEAN FOR THE INDUSTRY?"). That includes cybersecurity training, database access through unique, non-shareable passwords, reporting cybercrime faster, and having managers with the expertise to oversee cybersecurity efforts holistically. A need for faster response times to cyberattacks, better reporting of them and more robust software infrastructures are all apparent. This, coupled with demand for stronger [internal security](https://www.financedigest.com/the-financial-sector-must-act-to-tackle-internal-data-security.html "THE FINANCIAL SECTOR MUST ACT TO TACKLE INTERNAL DATA SECURITY") hygiene, points to the need for a more long-term and strategic approach to dealing with cybercrime. The [time to act](https://www.financedigest.com/time-to-act-as-cybercriminals-hot-on-the-heels-of-finance-sector.html "Time to act as cybercriminals hot on the heels of finance sector") is not _after_ a devastating cyberattack occurs. The time to act is now. 1. [https://commonslibrary.parliament.uk/research-briefings/sn06193/](https://commonslibrary.parliament.uk/research-briefings/sn06193/) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---