Iran war places financial services firms on cyber alert

The events in Iran have already disturbed stock markets around the globe, and now, due to the nature of the financial services industry and its ties with critical infrastructure operations, trading platforms and more, it is even more of a key target than usual.

Speaking with Reuters, Todd Klessman, managing director for financial services cyber and technology at SIFMA, said that despite growing security risks, financial firms are ready to take on cyber incidents.

“The industry remains vigilant and ready to respond to cyber threats ​at all times, and especially when global cyber security risks are heightened,” he said.

“We continue to monitor the current situation with a focus on operational resilience, which is foundational to the integrity and stability of the US capital markets.”

Credit rating agency Morningstar DBRS said earlier this week that the biggest threat to banks and financial services firms was not cyber, but instead indirect consequences such as sustained higher oil prices and borrower shock.

However, they did conclude that an increase in malicious cyber activity could also arise.

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“Iran could increase its cyber attacks against Western entities, including banks,” the credit rating agency said.

Additionally, the geopolitical advisory team at US investment bank Lazard warned of cyber risks, citing past cases of Iran showing intention and willingness to target commercial businesses in cyber warfare, including banks and financial services firms.

Here in Australia, cyber security firm CyberCX said the risk of cyber attack against entities like financial services, as well as energy, water, defence and government agencies, is “elevated” and “face a heightened threat from Iranian espionage and disruptive cyber operations”.