Banks see cyber crime risk increase

Cyber crime and political upheaval are the two biggest financial crime risks facing banks over the next year.

A survey of 200 professionals across banking and asset management found 44% felt new criminal techniques, like cyber crime, posed the largest threat to firms.

However, the report by LexisNexis Risk Solutions said 37% believed geo-political change presented an even greater financial crime risk.

Dean Curtis, UK managing director at LexisNexis Risk Solutions, said: “Imposing sanctions has recently been the US tool of choice when responding to an international threat.

“Financial institutions have found managing evolving sanctions policies and the introduction of new targeted sanctions tools, such as the sectoral sanction regime, to be a significant challenge, making them understandably concerned about the need to manage and update risk policies, process and controls.”

The report’s authors also found changes to sanctions following the election of US President Donald Trump were of more concern to financial crime professionals than Britain’s vote to leave the European Union, the report said.

It added that 30% felt Brexit would help fight criminals, while 14% believed it would have a negative impact and 56% were unsure.

Meanwhile, 92% were concerned old technology at organisations could make it harder to fight financial crime over the next two years.

The threat facing the financial firms was underscored by WannaCry ransomeware cyber attack earlier this month, which hit more than 300,000 computers in 150 countries, crippling organisations and global companies.

Picture: Getty. The City of London is home to a raft of major financial institutions.