[The Wrap] Generate hack a wake up call to all

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Generate KiwiSaver’s unfortunate experience with cyber crooks is a real wake up call to every participant in the financial services industry.

Friday, February 28th 2020, 5:41PM 1 Comment

We hear about cyber attacks constantly these days and often there seems like there is a “it-won’t-happen-to-me-because-I-am-too-small” attitude.

Financial advisers I’d argue are a high risk area because they hold so much valuable information on clients. Arguably mortgage brokers hold the most valuable information to cyber crooks.

While we don’t know the details of the Generate attack there are questions around why it took so long to detect. Also there is talk client data was captured at the front end.

You’d have to wonder if this is an issue for other KiwiSaver providers, especially the smaller players.

Getting cyber security right is hard. In the news today is the report on the Treasury’s bungled handling on last year’s Budget. The Financial Markets Authority had its own issues last year too.

Recently we reported in TMM Online that ANZ was setting high standards for the mortgage broker groups. Banks are anal around security and as they seek more and more oversight of their third party distribution channels you can expect data security will be right up there.

I’m told very few, if any, of the mortgage broker CRMs are at the level ANZ requires in the future. Talk is some of the bigger ones could need 12-18 months to get to the required standard.

One of the things the Generate hack did was push data security much higher up the to-do list for participants in financial services.

When it comes to full licensing for FAPs you can well expect data management and security will be a key issue.

Yet another thing to do. But arguably something urgent. Imagine dealing with a client who has had their identity hacked.

Tags: cyber security Generate The Wrap

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