Expert warns banks AREN'T prepared for cyber attacks just hours before the New York Stock Exchange halts trading (although it blames a software glitch)

  • Trading at NYSE is suspended due to an unexplained 'technical glitch'
  • United Airlines and the Wall Street Journal may have been hacked
  • Warning was made by Bundesbank's board member Andreas Dombert
  • He said awareness of risks is 'not present at all management levels'

By Ellie Zolfagharifard For Dailymail.com

Published: 13:26 EST, 8 July 2015 | Updated: 15:26 EST, 8 July 2015

In a timely warning, the German central bank today said that financial institutions aren't taking cyber attacks seriously.

The statement came just hours before trading at the New York Stock Exchange was halted due to a 'technical glitch'.

United Airlines and the Wall Street Journal have also fallen victim to a series of massive computer problems that some reports have blamed on hackers.

Scroll down for video 

In a timely warning, Andreas Dombret from the German central bank today said cyber security is not being taken seriously by financial institutions. Hours later, NYSE had to suspend trading. NYSE has denied it was hacked and says the suspension is due to a 'technical glitch'

In a timely warning, Andreas Dombret from the German central bank today said cyber security is not being taken seriously by financial institutions. Hours later, NYSE had to suspend trading. NYSE has denied it was hacked and says the suspension is due to a 'technical glitch'

'It seems to me that the awareness of these risks is not present at all management levels in banks,' Bundesbank executive board member Andreas Dombret told a symposium.

'The priority here is to catch up urgently and substantially boost defence of IT systems and customer data,' said Dombret, who is in charge of banking supervision and risk control on the Bundesbank board.

'Digitalisation brings new dangers,' he added.

'The most resourceful digital solutions are not of much use if they open the door to enormous new risks. And the so-called cyber risks have increased substantially in the past few years.' 

Hours after his speech, NYSE had to halt all trading, for 'technical reasons' - but said the problem was an internal one and not the result of a cyber attack.

Hours after his speech, NYSE had to halt all trading, for 'technical reasons' - but said the problem was an internal one and not the result of a cyber attack

Hours after his speech, NYSE had to halt all trading, for 'technical reasons' - but said the problem was an internal one and not the result of a cyber attack

WHAT HAPPENED

The German central bank, or Bundesbank, made the warning just hours before three potential cyber attacks:  

UNITED: Tens of thousands of United Airlines passengers were stranded at U.S. airports on Wednesday morning after all of the carrier's flights were grounded nationwide due to a computer system glitch.

NYSE: NYSE is currently halting all trading, claiming the glitch is a result of an internal error.

WSJ: Was unable to publish new stories due to glitch, now publishing cut down site.

It comes as tens of thousands of United Airlines passengers were stranded at U.S. airports this morning after all of the carrier's flights were grounded nationwide due to a computer system glitch.

The Wall Street Journal was also left unable to publish today after its systems came under attack and has been forced to switch to an alternative site design.

Dombret said that targeted IT attacks could be launched from anywhere in the world, often with nothing more than a laptop with Internet access.

And the range of motives for such strikes was wide, from amateur hackers to 'meticulously planned attacks with an economic or political background.'

Dombret called on every to bank to draw up a digital agenda and an adaptable strategy.

Despite the risks, 'everyone can profit from digitalisation, and in the short term, customers in particular,' he said.

It comes as tens of thousands of United Airlines passengers were stranded at U.S. airports on Wednesday morning after all of the carrier's flights were grounded nationwide due to a computer system glitch

It comes as tens of thousands of United Airlines passengers were stranded at U.S. airports on Wednesday morning after all of the carrier's flights were grounded nationwide due to a computer system glitch

A separate report release today found that a cyber attack which shuts down parts of the United States' power grid could cost as much as $1 trillion to the U.S. economy.

The report from the University of Cambridge Centre for Risk Studies and the Lloyd's of London insurance market outlines a scenario of an electricity blackout that leaves 93 million people in New York City and Washington DC without power.

The hypothetical attack causes a rise in mortality rates as health and safety systems fail, a drop in trade as ports shut down and disruption to transport and infrastructure.

'The total impact to the U.S. economy is estimated at $243 billion, rising to more than $1 trillion in the most extreme version of the scenario,' the report said.

 

Comments (45)

Share what you think

 View all

The comments below have not been moderated.

 View all

The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline.

Add your comment

By posting your comment you agree to our house rules.

Who is this week's top commenter? Find out now