YUKKA Lab AG’s Post

🚨 Attention Risk Managers, Portfolio Managers, and Investors! 🚨 ESG Risk Alert: Unicredit's staggering fast increase in ESG risk underscores the urgent need for real-time news analytics in safeguarding investments. In the wake of a massive data breach and GDPR violations, UniCredit's hefty 2.8M € fine highlights the critical importance of proactive cyber security measures. Don't wait for penalties to escalate—learn how real-time news analytics can empower you to mitigate risks and protect your investments. Stay ahead of the curve. Act now to secure your assets. #ESGRisk #CyberSecurity #DataBreach #RealTimeAnalytics

#1 Operational Risk for EU Banks? Cyber & Data Security ⚠️ Why should compliance teams at VASPs care?    📋The EBA recently published the spring edition of its risk assessment report (RAR), noting that European banks face their biggest operational risks in cyber and data security. ❗ Cyber-attacks, including successful ones, are on the rise.  Over half of EU-assessed banks stated they had 𝗯𝗲𝗲𝗻 𝘃𝗶𝗰𝘁𝗶𝗺𝘀 𝗼𝗳 𝗮𝘁 𝗹𝗲𝗮𝘀𝘁 𝗼𝗻𝗲 𝗰𝘆𝗯𝗲𝗿-𝗮𝘁𝘁𝗮𝗰𝗸 in the second half of 2023! 🏦 EU banks are not alone — 𝗩𝗔𝗦𝗣𝘀 𝗮𝗿𝗲 𝘃𝘂𝗹𝗻𝗲𝗿𝗮𝗯𝗹𝗲 𝘁𝗼 𝘁𝗵𝗲 𝘀𝗮𝗺𝗲 𝗿𝗶𝘀𝗸𝘀 and may use these insights to inform their priorities and IT choices. 📋 Enhancing cyber and data security will be mandatory under the Digital Operational Resilience Act (DORA) starting in 2025. Still, it is clear that the risks to the entity and its customers are real and relevant right now. 🔗 𝗧𝗵𝗲 𝘀𝘁𝗮𝗸𝗲𝘀 𝗮𝗿𝗲 𝗲𝘃𝗲𝗻 𝗵𝗶𝗴𝗵𝗲𝗿 𝗳𝗼𝗿 𝗩𝗔𝗦𝗣𝘀, 𝗲𝘀𝗽𝗲𝗰𝗶𝗮𝗹𝗹𝘆 𝗶𝗻 𝘁𝗵𝗲 𝗰𝗼𝗻𝘁𝗲𝘅𝘁 𝗼𝗳 𝘁𝗵𝗲 𝗧𝗿𝗮𝘃𝗲𝗹 𝗥𝘂𝗹𝗲, since the sensitive data collected and exchanged can uncover a greater amount of financial detail than the VASP holds due to the visibility of a person's activities on the blockchain. 🔐 Hence, keeping bank-grade 𝗰𝘆𝗯𝗲𝗿 𝗮𝗻𝗱 𝗱𝗮𝘁𝗮 𝘀𝗲𝗰𝘂𝗿𝗶𝘁𝘆 𝗹𝗲𝘃𝗲𝗹𝘀 𝘀𝗵𝗼𝘂𝗹𝗱 𝗻𝗼𝘁 𝗯𝗲 𝗮𝗻 𝗮𝗳𝘁𝗲𝗿𝘁𝗵𝗼𝘂𝗴𝗵𝘁 for any process that touches sensitive data, which is the case of Travel Rule compliance. 👁️🗨️ This is best achieved by keeping PII within the financial entity, as adding a third-party provider impacts transparency on how this sensitive data is handled, stored and deleted. 🔹 Finally, risks related to customers’ transactions received from or sent to jurisdictions subject to international sanctions remain the most relevant financial crime risks for banks. The Travel Rule aims to solve this exact need for VASPs. 🔹 Although most firms focus on the collection of data from their customers and rely on VASP networks for vetting counterparties, the key for compliance teams 𝘁𝗼 𝗺𝗶𝘁𝗶𝗴𝗮𝘁𝗲 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗰𝗿𝗶𝗺𝗲 𝗿𝗶𝘀𝗸𝘀 𝗶𝘀 𝗸𝗻𝗼𝘄𝗶𝗻𝗴 𝘆𝗼𝘂𝗿 𝗰𝗼𝘂𝗻𝘁𝗲𝗿𝗽𝗮𝗿𝘁𝗶𝗲𝘀 through proper due diligence. Ensuring transactions only occur with vetted and trusted firms. 🔹 Banks, mining companies, and VASPs who take data protection seriously opt for an on-premises Travel Rule solution, like 𝟮𝟭 𝗧𝗿𝗮𝘃𝗲𝗹 𝗥𝘂𝗹𝗲. ✅ Choosing an on-premises solution allows you:  - to decide when data is physically deleted and data protection obligations are fulfilled;  - be independent and not rely on the provider's availability and uptime to complete transactions; - prevent additional risks and points of failure. 💡 If you are concerned about the data risks Travel Rule compliance adds to your operations, talk to us and learn why we differ from the alternatives.

Navigating the Waters of Bank Guarantee Fraud: Effective Risk Mitigation Strategies Uncover key strategies to shield your operations from bank guarantee fraud. This post delves into robust measures that enhance security and maintain trust in financial transactions: 1. Robust Verification Processes: Implementing stringent verification processes for all bank guarantees to prevent fraudulent activities. 2. Technological Integration: Utilizing blockchain and AI technologies to secure transactions and improve transparency in real-time monitoring. 3. Staff Training: Empowering employees with knowledge and tools to detect early signs of fraud, ensuring they are well-equipped to handle potential threats. 4. Regular Audits: Conducting frequent internal and external audits to ensure compliance with regulatory standards and operational integrity. 5. Collaborative Networks: Creating a collaborative network among banks to share intelligence on emerging fraud patterns and effective countermeasures. 6. Customer Education: Educating customers on the risks associated with bank guarantees and safe practices to avoid falling victim to scams. 7. Comprehensive Insurance: Encouraging the adoption of insurance policies that cover losses due to fraud, safeguarding the financial health of the institution. 8. Regulatory Adherence: Staying updated with global regulatory changes and adapting operations to meet these standards to prevent legal repercussions. 9. Digital Security Measures: Enhancing digital security frameworks to protect against cyber threats that target financial transactions. 10. Global Standards Compliance: Ensuring all operations comply with international financial security standards to foster trust and consistency across borders. Join us in fortifying financial infrastructures against fraud. Share your insights and learn from industry leaders about cutting-edge risk mitigation strategies. #BankGuaranteeFraud #RiskManagement #FinancialSecurity #BlockchainTechnology #AIInFinance #Cybersecurity #RegulatoryCompliance #FinancialEducation #BankingIndustry

🚨Navigating the Waters of Data Protection: A Wake-Up Call for Financial Institutions 💡 As a Senior Product Manager in eCom at Paynovate, the recent €2.8m fine imposed on UniCredit by Italy's #dataprotectionauthority serves as a stark reminder of the critical importance of robust data security measures within the financial sector. The 2018 cyber attack on UniCredit's mobile banking platform, resulting in the leakage of sensitive customer information, underscores a vital lesson for all of us in the industry: the necessity of preemptive security measures. 🛡️🔐 UniCredit's ordeal, including previous breaches in 2017 and 2019, highlights a recurring challenge in safeguarding personal financial information. As technology evolves, so do the threats against our customers' data integrity. In response to the authority's decision, UniCredit's commitment to invest €2.8bn in enhancing data protection showcases the significant steps institutions are willing to take to fortify their defenses. 🏦💶 This series of events, coupled with increased regulatory enforcement actions globally, such as the recent charge against JPMorgan Chase & Co. by the U.S. Securities and Exchange Commission, illustrates a broader industry trend. We are moving towards a future where data security and regulatory compliance are not just best practices but essential pillars of our operational foundation. 🌍📊 From my perspective, these developments should reinforce the company's commitment to adopting the most advanced and secure technologies. The journey towards impeccable data security is ongoing and requires unwavering attention and investment.🌐🔒 https://lnkd.in/dnmYXuSF #DataProtection #CyberSecurity #FinancialServices #UniCredit #RegulatoryCompliance #Fintech #Ecommerce #Innovation #Paynovate

Banking and Cyber Security Against a backdrop of growing digitalization, evolving technologies, and rising geopolitical tensions, cyber-related incidents, in particular those with a malicious intent, have become much more frequent over the past two decades, and especially since 2020. Severe incidents at major financial institutions could pose an acute threat to macrofinancial stability through a loss of confidence, the disruption of critical services, and spillovers to other institutions due to technological and financial interconnectedness. We find that while cyber incidents have thus far not been systemic, the risk of extreme direct losses—at least as large as $2.5 billion—to firms from such incidents has increased. Moreover, indirect losses from cyber incidents are also significant and tend to be substantially larger than the reported direct losses by firms. Understanding the factors that contribute to the occurrence or prevention of cyber incidents is crucial for developing robust cybersecurity policies and strategies. The  analysis suggests that digitalization and geopolitical tensions significantly raise the risk of cyber incidents while more developed cyber legislation and better cyber governance at firms could help to mitigate such risk. High market concentration and low substitutability, especially when considering critical services such as payment services and custody banking, could make cyber incidents on financial firms particularly disruptive. Operations of financial firms often depend on common third-party IT providers, which also raises the risk of common shocks and spillovers. A severe cyber incident at a financial institution could undermine trust in the financial system and, in extreme cases, lead to market selloffs or runs on banks. Although no significant cyber runs have occurred yet, empirical analysis suggests modest and somewhat persistent deposit outflows from smaller  banks after a cyberattack. With the global financial system facing significant and growing cyber risks, policy and governance frameworks must keep pace. However, a survey of central banks and supervisory authorities in emerging market and developing economies shows that cybersecurity policy frameworks often remain insufficient. The cyber resilience of the financial sector should be strengthened by developing an adequate national cybersecurity strategy, appropriate regulatory and supervisory frameworks, a capable cybersecurity workforce, and domestic and international information-sharing arrangements. To allow for more effective monitoring of cyber risks, reporting of cyber incidents should be strengthened. Supervisors should hold board members responsible for promoting a conducive risk culture, cyber hygiene, and cyber training and awareness. To limit potential disruptions from cyber incidents, financial firms should develop recovery procedures. National authorities should develop effective response protocols and crisis management frameworks.

Over 100 European banks will be tested on their cyber-attack response and recovery capabilities this year, the European Central Bank (ECB) has announced. https://lnkd.in/eSkEVYkZ Resilience is essential to keep CNI organisations operational. While distributed denial-of-service attacks remained the most common type of incident against banks, the recent increase in ransomware incidents has raised supervisory concerns. In the IT Risk Questionnaire Self Assessment form that banks have to submit, Question 13a in the IT Cyber Risk table states requires a response to "Of which (critical systems), the overall unplanned downtime (in hours,) that exceeded business agreements (e.g. SLA, RTO)? 'Unplanned Time' includes those exceptional incidents such as the cyber attacks noted at the start of this post. The image below is taken from the same IT Risk Questionnaire (IT Environment section), it specifically requires the respondent to detail their detection and recovery data points. As most ransomware attacks are not detected by any security tools (they have been evaded), it becomes a waiting game until a system or user is unable to access systems or data. In my recent report (link in the first comment box), the capability to restore data operations from backups in an acceptable Recovery Time (RTO) was found to be woefully inadequate, and the additional costs needed to accelerate the RTO would be included in question 32 of the image. Recovery time and significantly lower costs when recovering data can be achieved, but not from your existing tools. Read the report as it outlines your ability to score better and have data and devices immediately available. Synergy Six Degrees Cybrilliance NeuShield, Inc. Lloyds Banking Group HSBC NatWest Group Barclays Metro Bank (UK) BNP Paribas Crédit Agricole CIB UBS Groupe BPCE Societe Generale Deutsche Bank Crédit Mutuel Intesa Sanpaolo ING UniCredit Standard Chartered Bank La Banque Postale BBVA Rabobank DZ BANK AG #bankingtech #ransomwareprotection #cio #ciso

🔒💼 Data security is paramount in the US banking sector, and redaction tools are playing a crucial role in safeguarding sensitive information. 🛡️💪 With cyber threats on the rise, banks are turning to advanced redaction solutions to protect customer data and maintain trust. These tools help eliminate any potential risks associated with unauthorized access or breaches. From personally identifiable information (PII) to financial records, redaction tools ensure that only authorized personnel have access to sensitive data. By automatically identifying and removing sensitive information from documents, these tools provide an extra layer of security that is essential in today's digital landscape. Not only do redaction tools safeguard against external threats, but they also assist banks in complying with data protection regulations like GDPR and CCPA. By implementing robust redaction practices, financial institutions can avoid hefty penalties and protect their reputation. With the ever-increasing volume of data, manual redaction becomes an arduous task. That's where automated redaction tools come in, making the process faster, more accurate, and cost-effective. Banks can now focus their resources on delivering exceptional services to customers, knowing that their sensitive data is in safe hands. At VIDIZMO, we understand the importance of data security in the banking sector. Our cutting-edge redaction tools ensure your institution remains compliant, reduces risks, and enhances customer trust. 💼🔐 Invest in advanced redaction solutions today and fortify your data security defenses. Let's work together to protect sensitive information and maintain the integrity of the US banking sector! 💪🌐 #DataSecurity #BankingSector #RedactionTools #CyberThreats #Compliance #CustomerTrust #ProtectingData #DigitalLandscape #DataProtection #AutomatedRedaction #CuttingEdgeTechnology #USBanking #DataSecuritySolutions #RedactionTechnology #BankingSectorInsights #FinancialSecurity #CyberRiskManagement #RegulatoryCompliance #SecureDataSharing #DocumentRedaction #FinanceTechnology #InformationProtection #BankingInnovation #CorporateDataPrivacy #DigitalBankingSecurity #RiskMitigation #ComplianceStandards https://bit.ly/3tw9cEa

🔒💼 Data security is paramount in the US banking sector, and redaction tools are playing a crucial role in safeguarding sensitive information. 🛡️💪 With cyber threats on the rise, banks are turning to advanced redaction solutions to protect customer data and maintain trust. These tools help eliminate any potential risks associated with unauthorized access or breaches. From personally identifiable information (PII) to financial records, redaction tools ensure that only authorized personnel have access to sensitive data. By automatically identifying and removing sensitive information from documents, these tools provide an extra layer of security that is essential in today's digital landscape. Not only do redaction tools safeguard against external threats, but they also assist banks in complying with data protection regulations like GDPR and CCPA. By implementing robust redaction practices, financial institutions can avoid hefty penalties and protect their reputation. With the ever-increasing volume of data, manual redaction becomes an arduous task. That's where automated redaction tools come in, making the process faster, more accurate, and cost-effective. Banks can now focus their resources on delivering exceptional services to customers, knowing that their sensitive data is in safe hands. At VIDIZMO, we understand the importance of data security in the banking sector. Our cutting-edge redaction tools ensure your institution remains compliant, reduces risks, and enhances customer trust. 💼🔐 Invest in advanced redaction solutions today and fortify your data security defenses. Let's work together to protect sensitive information and maintain the integrity of the US banking sector! 💪🌐 #DataSecurity #BankingSector #RedactionTools #CyberThreats #Compliance #CustomerTrust #ProtectingData #DigitalLandscape #DataProtection #AutomatedRedaction #CuttingEdgeTechnology #USBanking #DataSecuritySolutions #RedactionTechnology #BankingSectorInsights #FinancialSecurity #CyberRiskManagement #RegulatoryCompliance #SecureDataSharing #DocumentRedaction #FinanceTechnology #InformationProtection #BankingInnovation #CorporateDataPrivacy #DigitalBankingSecurity #RiskMitigation #ComplianceStandards https://bit.ly/3TwG9uN

🔒💼 Data security is paramount in the US banking sector, and redaction tools are playing a crucial role in safeguarding sensitive information. 🛡️💪 With cyber threats on the rise, banks are turning to advanced redaction solutions to protect customer data and maintain trust. These tools help eliminate any potential risks associated with unauthorized access or breaches. From personally identifiable information (PII) to financial records, redaction tools ensure that only authorized personnel have access to sensitive data. By automatically identifying and removing sensitive information from documents, these tools provide an extra layer of security that is essential in today's digital landscape. Not only do redaction tools safeguard against external threats, but they also assist banks in complying with data protection regulations like GDPR and CCPA. By implementing robust redaction practices, financial institutions can avoid hefty penalties and protect their reputation. With the ever-increasing volume of data, manual redaction becomes an arduous task. That's where automated redaction tools come in, making the process faster, more accurate, and cost-effective. Banks can now focus their resources on delivering exceptional services to customers, knowing that their sensitive data is in safe hands. At VIDIZMO, we understand the importance of data security in the banking sector. Our cutting-edge redaction tools ensure your institution remains compliant, reduces risks, and enhances customer trust. 💼🔐 Invest in advanced redaction solutions today and fortify your data security defenses. Let's work together to protect sensitive information and maintain the integrity of the US banking sector! 💪🌐 #DataSecurity #BankingSector #RedactionTools #CyberThreats #Compliance #CustomerTrust #ProtectingData #DigitalLandscape #DataProtection #AutomatedRedaction #CuttingEdgeTechnology #USBanking #DataSecuritySolutions #RedactionTechnology #BankingSectorInsights #FinancialSecurity #CyberRiskManagement #RegulatoryCompliance #SecureDataSharing #DocumentRedaction #FinanceTechnology #InformationProtection #BankingInnovation #CorporateDataPrivacy #DigitalBankingSecurity #RiskMitigation #ComplianceStandards https://bit.ly/41vUXvL

Our latest post helping banks prior to their forthcoming ECB Cyber Resilience test.