As the number of cyber attacks in the crypto-currency sector continues to rise, Joe Longo, Chairman of the Australian Securities and Exchange Commission (ASIC), is sounding the alarm and stressing the importance of cybersecurity. In a recent press release, Longo refers to the growing trend for companies to turn to third parties to ensure their IT security and data protection. However, it raises a number of issues and challenges that companies are facing.
Inadequate management of third-party and supply chain risks
According to the results of a survey conducted by ASIC, almost half of respondents admitted to not managing third-party or supply chain risks. This lack of vigilance can prove costly, leading to successful cyber attacks and resulting in the loss of sensitive data or exposure to legal action. To strengthen risk management, Longo recommends following three key principles:
- Never rest on your laurels;
- Plan and test attacks regularly;
- Keep a constantly updated list of items to be protected.
Inadequate protection of confidential information
Longo also highlights that more than half of the companies surveyed lack adequate skills to protect sensitive information. This flaw in their security arrangements can have major financial consequences and damage their reputation. In order to improve data protection, he recommends that companies avoid complacency and do not think that a cyber-security solution that is already in place is sufficient.
Cryptocurrency: major losses due to piracy
The crypto-industry has recently been the scene of a significant number of cyberattacks resulting in considerable financial losses. According to PeckShield, a company specialising in blockchain security, 95% of the funds misappropriated in July 2021, totalling $156 million, were due to the top five cyber attacks. Given these alarming figures, Longo is calling on industry players to strengthen their security arrangements and actively prevent the risks associated with cyber threats.
Solutions to combat cyber threats
To meet the challenges posed by cybersecurity and protect themselves effectively against this growing scourge, here are a few avenues that businesses can explore:
- Put in place solid and coherent governance for cyber security, including senior management and the various stakeholders (security manager, IT manager, etc.).
- Promoting collaboration and the exchange of information between industry players, specialist organisations, public authorities and cybersecurity experts.
- Invest in training and the development of specific cyber-security skills to ensure optimum protection of sensitive information and a heightened level of vigilance.
- Adopt a proactive approach to cyber threats by regularly updating security systems and anticipating technological developments.
- Carry out regular security audits and penetration tests to assess the effectiveness of the protection systems in place and to learn about potential new vulnerabilities.
In conclusion: don’t neglect cyber security
With hacking on the rise, particularly in the cryptocurrency sector, it is vital that businesses realise the importance of cybersecurity. Statements made by Joe Longo, Chairman of ASIC, highlight this absolute necessity to protect data and financial assets. By following his recommendations and investing in IT security, businesses will be able to better guard against cyber threats and ensure a safe and secure digital environment.
