julho 24 2024

Cybersecurity is “major threat” for financial services firms, according to new Mayer Brown study

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“AI will need to fight AI” in cybersecurity wars as vulnerability to attacks remains high

Nearly eight in 10 leaders of financial services firms are unable to plan for the future because they are concerned about their organization’s ability to withstand cyberattacks, reveals a new survey by leading international law firm Mayer Brown.

The Next Organization, a global survey of 197 leaders from the financial services sector, identifies cybersecurity as a key factor in building an organization fit for the future. However, the majority of financial services firms are concerned about their ability to protect themselves and their customers from increasingly sophisticated cyberattacks. 79% of financial institutions and 77% of investment firms say that vulnerability to cyberattacks ranks as a top factor impacting their transformation plans.

According to Raj De, leader of Mayer Brown’s global Cybersecurity & Data Privacy practice, “More and more we’re seeing companies, organizations, and nations falling victim to increasingly sophisticated cyberattacks. There are a lot of moving parts here, and businesses must navigate the complex and evolving landscape of cybersecurity. Businesses must get on the front foot and adopt proactive and robust strategies to protect their data, systems, and reputation. AI is becoming a big part of that picture too, offering both challenges and opportunities in the cybersecurity realm.”

There is clear recognition by financial services leaders that their organizations must be tech resilient: 69% of financial institution leaders and 77% of investment firms agree on the importance of having strong defences to cyberattacks and staying on top of AI developments. Notably, The Next Organization reveals a significant gap between the aspiration and the reality of this resilience. Many leaders – 72% of financial institution leaders and 73% of investment firm leaders – admit that their organizations are struggling to transform quickly enough in response to fast-moving AI developments.

“AI has revolutionized the way organizations think about cybersecurity,” said Oliver Yaros, a partner at Mayer Brown. “AI powered cybersecurity tools and systems can provide more advanced data protection, diluting threats by recognizing patterns, automating processes, and highlighting anomalies. However, AI has also assisted the fraudsters and hackers who are becoming far more sophisticated using the same tools. The commercial, legal, and reputational consequences that arise when an AI tool is attacked has intensified the cybersecurity wars with the end result that organizations will need to fight AI with AI. Being behind the curve on technological advances is no longer an option for businesses.”

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