Bank of England sends in hackers to test lenders’ defences - Business News - Business - The Independent

Bank of England sends in hackers to test lenders’ defences

 

EConomics Editor

The Bank of England is to let hackers loose on Britain’s biggest banks to test their defences against cyber-attacks.

Under the Bank’s new framework, known as CBEST, hackers working for private security firms will identify the vulnerabilities of individual institutions, and replicate the methods of malicious attackers.

The Bank said its simulation would be superior to the digital security checks currently used by financial firms because it would be based on real threat intelligence and focus on the more sophisticated potential attacks on systems.

The move follows last year’s recommendation from the Bank’s Financial Policy Committee to beef up the resilience of the financial system to malicious hacking and cyber-crime.

Andrew Gracie, the Bank’s executive director of resolution, unveiled the new framework at the British Bankers’ Association cyber conference. “The idea of CBEST is to bring together the best available threat intelligence from government and elsewhere, tailored to the business model and operations of individual firms, to be delivered in live tests, within a controlled testing environment,” he said.

“Unlike physical attacks which are localised, these attacks are international and know no boundaries. Cyber defence, as a result, has become not a matter of designing a hard perimeter that can repel attacks but detecting where networks have been penetrated and responding effectively.”

The results, including the extent of the access the licensed hackers gain and the damage they could potentially cause, will be shared with both the individual banks and the Prudential Regulation Authority.

“The results should provide a direct read-out on a firm’s capability to withstand cyber-attacks which – on the basis of current intelligence – have the most potential, combining probability and impact, to have an adverse impact on financial stability” Mr Gracie said.

The industry will not be forced to take part but the Bank, which unveiled CBEST unofficially two weeks ago, has seen strong interest from financial institutions. It will cost a bank about £100,000 to have its systems tested under the new regime, which cost about £200,000 to develop.

The internet security giant McAfee has estimated the global cost of cyber-crime at £266bn. In December, the Royal Bank of Scotland said its platform was briefly attacked by hackers, causing problems for customers trying to get access to their accounts.

The Bank expects to have 18 testing companies and nine intelligence firms accredited to carry out the tests after working with the Council for Registered Ethical Security Testers and the intelligence firm Digital Shadows to develop new industry  standards.

The Bank told City firms in February they needed to act more quickly and report to regulators in more detail if they became subject to cyber-attacks from criminal gangs or terrorists. The warning followed a three-day exercise, Waking Shark II, which simulated an attack on the City.

News
John Travolta is a qualified airline captain and employed the pilot with his company, Alto
people'That was the lowest I’d ever felt'
Life and Style
healthIt isn’t greasy. It doesn’t smell. And moreover, it costs nothing
Arts and Entertainment
Emma Thompson and Bryn Terfel are bringing Sweeney Todd: The Demon Barber of Fleet Street to the London Coliseum
theatre

Returning to the stage after 20 years makes actress feel 'nauseous'

News
peopleThe Times of India said actress should treat it as a 'compliment'
PROMOTED VIDEO
News
news

Commuter travels 320 metres, 75 steps, two ticket barriers and a labyrinth of roads to get to work
Property
Home body: Badger stays safe indoors
lifeShould we feel guilty about keeping cats inside?
News
The programme sees four specialists creating what they believe are three perfect couples, based on scientific matchmaking. The couples will not meet until they walk down the aisle together
tvUK edition of wedding show forced to recast after wave of drop-outs
Arts and Entertainment
US pop diva Jennifer Lopez sang “Happy Birthday” to Gurbanguly Berdimuhamedow, president of Turkmenistan
musicCorporate gigs become key source of musicians' income
Arts and Entertainment
You've been framed: Henri Matisse's colourful cut-outs at Tate Modern
artWhat makes a smash-hit art show
News
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
While many films were released, few managed to match the success of James Bond blockbuster 'Skyfall'
filmsDaniel Craig believed to be donning skis as 007 for first time
Student
The Guildhall School of Music and Drama is to offer a BA degree in Performance and Creative Enterprise
student

Top conservatoire offers ‘groundbreaking’ arts degree

Sport
Mikel Arteta pictured during Borussia Dortmund vs Arsenal
champions league
Voices
Yes supporters gather outside the Usher Hall, which is hosting a Night for Scotland in Edinburgh
voicesBen Judah: Is there a third option for England and Scotland that keeps everyone happy?
Arts and Entertainment
Pulp-fiction lover: Jarvis Cocker
booksJarvis Cocker on Richard Brautigan
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Consultant - Soho - IT, Pharma, Public Sector

£20000 - £25000 per annum + OTE £35,000 first year: SThree: The SThree group i...

Sales Executive

£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...

Payroll & Accounts Assistant

£20 - 24k + Benefits: Guru Careers: This is a great opportunity for an enthusi...

SQL Developer - Watford/NW London - £280 - £320 p/d - 6 months

£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Day In a Page

Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam
'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

Exclusive extract from Janis Winehouse's poignant new memoir
Is this the role to win Cumberbatch an Oscar?

Is this the role to win Cumberbatch an Oscar?

The Imitation Game, film review
England and Roy Hodgson take a joint step towards redemption in Basel

England and Hodgson take a joint step towards redemption

Welbeck double puts England on the road to Euro 2016
Relatives fight over Vivian Maier’s rare photos

Relatives fight over Vivian Maier’s rare photos

Pictures removed from public view as courts decide ownership
‘Fashion has to be fun. It’s a big business, not a cure for cancer’

‘Fashion has to be fun. It’s a big business, not a cure for cancer’

Donatella Versace at New York Fashion Week