AUSTRAC flags financial services duty in digital theft prevention

According to the government agency, cyber-enabled crime is growing across the country, and is beginning to focus on digital currency. 

Data from the Australian Cyber Security Centre for example suggested that, over the 2021 financial year, there were 500 ransomware attacks – a year-on-year increase of 15 per cent. 

“Digital currencies are increasing in value and acceptance, with Australians rapidly adopting this new technology,” AUSTRAC said in a statement. 

“As the digital currency market continues to grow globally, criminals are increasingly using digital currencies to commit a range of serious crimes.”

In response, AUSTRAC has released two guides devoted to awareness of this behaviour, with the first, titled Detecting and Reporting Ransomware, focusing on informing businesses of the intersection between malware and digital currency. 

However, the agency flagged in its paper that financial service providers also have a role to play in addressing this online behaviour.

“Financial services businesses have an important role to detect and report financial flows related to ransomware and stop ransomware payments, because they are a key point where criminals interact with the legitimate financial system,” the report stated. 

This idea of financial service providers having a responsibility in the prevention of digital theft is magnified by the agency’s second guide, Preventing The Criminal Abuse of Digital Currencies. 

As per the publication, the intention of this resource is to enable providers to “understand and identify criminal activity facilitated through digital currencies and to report suspicious financial activity”. 

AUSTRAC chief executive Nicole Rose commented that while businesses must be aware of criminal activity orbiting digital currency, financial service providers also share a level of responsibility.

“Financial service providers need to be alert to the signs of criminal use of digital currencies, including their use in ransomware attacks,” Ms Rose said.

Blockchain Australia CEO Steve Vallas added that “open dialogue, proactive guidance and strong relationships between government and industry” are necessary to ensure that this behaviour can be identified and prevented.

“The development of resources, such as this guide, help ensure greater awareness of the risks associated with the sector are not an impediment to innovation and economic opportunity presented by this technology,” Mr Vallas said.

The warning from AUSTRAC around the growing threats of cybercriminal activity in financial services has followed those from Major General (Ret’d) Dr Marcus Thompson, former head of the Department of Defence’s Information Warfare Division, who recently urged brokers to bolster their cybersecurity posture before their brokerage suffers from an attack.

Dr Thompson, who is due to speak at a session at the upcoming 2022 Better Business Summit across five states, told The Adviser that brokers and the broader financial services sector are particularly vulnerable to cyber-attacks because they have access to their clients’ sensitive financial information and digital systems that connect to financial institutions and other trading mechanisms.

As such, he recommended that brokers implement a multi-pronged defence system in their business to protect themselves, and encouraged business owners to educate their staff around cyber awareness.

Dr Thompson will present a conceptual framework for the consideration of cyber security, and answer brokers’ questions around their technical support during his session at the Better Business Summit this year.

The Better Business Summit 2022 will be held in April, May and June across five states.

Themed “Digital Broker”, a variety of speakers will provide brokers with the tools and knowledge to harness technology to increase efficiencies and succeed in their businesses.

The Better Business Summit 2022 will be held in the following locations:

• Brisbane, 28 April 2022 at Sofitel Brisbane Central
• Sydney, 5 May 2022 at the Australian Turf Club, Royal Randwick Racecourse
• Adelaide, 12 May 2022 at the Adelaide Convention Centre
• Perth, 19 May 2022 at Crown Towers
• Melbourne, 2 June 2022 at Crown Towers

Click here to buy tickets to the summit for $249 and make sure you don’t miss out!

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For more information about the 2022 Better Business Summit including speakers and agenda, click here.

[Related: Too late to beef up cyber security after attack, brokers told]