Corporate treasury is now a top target for cyber-criminals. Treasury’s trove of personal and corporate data, its authority to make payments and move large amounts of cash quickly, and its often complicated structure make it an appealing choice for discerning fraudsters.
These sophisticated cyber-criminals use social engineering and inside information gleaned from lengthy reconnaissance within a given company’s systems to execute high-value thefts. They understand that the ability to access payment infrastructures and bank communication channels is extraordinarily powerful. They know that treasurers rarely control the IT security infrastructure they use. And given the nature of some successful attacks, hackers also seem to understand that most treasuries contain junior staff who can be pressured into infringing rules.
The potential losses are huge. Hackers infiltrating individual companies have stolen tens of millions of dollars in a single attack. The stock price of breached companies falls and CEOs are sacked. Data losses create reputational damage and lawsuits from inside and outside the company. Even mergers and acquisitions can be derailed or altered in value to the tune of hundreds of millions of dollars, as in the case of telco Verizon’s acquisition of internet company Yahoo!
Evidently, cyber-security is not an issue that treasurers can ignore. This report, written by The Economist Intelligence Unit (EIU) and sponsored by Deutsche Bank, investigates the state of treasury cyber-security and identifies what needs to be done to improve it.
