Financial watchdog warns bank or exchange could be hacked

The Authority for the Financial Markets (AFM) fears that a trading exchange, or possibly a bank, will be hacked before long. It calls cyber incidents "one of the most acute systemic risks" for the financial sector in its annual Trendzichtrapport, a trend report on the financial markets.

Van Geest says preparation starts with companies themselves. Supervisors, the government and the Ministry of Finance will help, she says. The AFM advises spreading risks rather than putting all their eggs in one basket. "There is nothing wrong with a little cash at home and perhaps a second bank account," Van Geest says.

"It is not a question of whether the financial markets will be hit by a cyberattack, but when and how," says AFM chair Laura van Geest. She believes the rise in incidents, including at larger organisations, results from AI getting smarter or better. "That is also why we are sounding the alarm."

The report says financial institutions are "a primary target because of their central role in the financial system and their high degree of digitalisation". The AFM says this is no longer only about hackers demanding ransom for stolen sensitive data: countries now use cyberattacks as hybrid warfare. "A lot of trouble comes from abroad," Van Geest says. The effects could range from people struggling to make phone calls to being locked out of their accounts.

The AFM says the newest generation of AI models offers ever more powerful tools for finding and exploiting security weaknesses. AI can also help companies detect cyber threats and respond to them better, it adds.

Van Geest says preparation starts with companies themselves. Supervisors, the government and the Ministry of Finance will help, she says.