Experts discuss solutions to the threat of cyber-attacks on financial services firms

Experts discussed current cyber threats to the financial services industry, how the industry is responding, and regulatory efforts underway client information from cybercriminals at the North American Securities Administrators Association’s (NASAA) Cybersecurity Roundtable last week.

“Cybersecurity is a growing challenge for the securities industry and for securities regulators at all levels,” NASAA President and Minnesota Commissioner of Commerce Mike Rothman said. “No securities firm or investment adviser of any size can afford the loss in client trust – much less financial losses – that will result from a serious cybersecurity failure. And no investor should have his or her personal information compromised or hard-earned money stolen.”

The number of data breaches in the United States reached an all-time high last year, and the financial cost of these cyberattacks on businesses continues to grow, Rothman said at the event, which was held in Washington, D.C.

“There’s no question that cyberattacks are going to increase,” Rothman said. “These threats to the public mean that, as regulators, we must be vigilant. It is important that securities firms and professionals have the tools and information they need for cybersecurity. It is also essential to have the proper regulatory expectations and guidance in place for the securities industry.”

Cybersecurity and information technology experts from the Federal Bureau of Investigation, the U.S. Department of the Treasury, the U.S. Securities and Exchange Commission, state securities agencies, FINRA, and the financial services industry participated in the roundtable.

“NASAA believes cybersecurity, like many of the issues we face, requires a collaborative approach involving industry and regulators,” Rothman said. “We are looking at new ways to provide resources for regulators and industry members to address cybersecurity issues and we will continue to work as collaboratively as we can so that we are all better prepared against cyberattacks.”