Cyber crime: also a risk in asset management

Asset managers are becoming increasingly aware of the high risk they face from cyber crime. As the digital transformation progresses, with almost all financial transactions now being executed online, cyber attacks can take on proportions that threaten a company's very existence. The following article sheds light on some of the specific risks and how they can be addressed. You can also draw up an emergency plan for your company free of charge.

By Andreas Corradini Senior Underwriter Cyber Insurance , AXA Versicherungen AG

Protecting clients' assets

Many asset managers and other financial service providers have direct access to their clients' assets, and this comes with a great deal of responsibility. There are a lot of cyber criminals out there trying to hack into asset managers' e-banking accounts and transfer client assets to their own accounts. The money is then immediately moved on to somewhere else, making it hard to track. As the two examples below illustrate, cyber crime is a clear and present danger for the industry.

Manipulation of e-banking

It was recently reported in the press that clients of Aargauer Kantonalbank (AKB) had been targeted by cyber criminals who sent text messages informing them that they had received a voicemail. According to AKB, malware was installed when they tried to listen to the voicemail, allowing the criminals to gain access to the clients' e-banking accounts.

Social engineering

Social engineering is another tactic criminals use to get their hands on clients' assets. Posing as a member of the executive board or a client, they persuade staff to make payments from their own accounts or from client accounts. This is sometimes referred to as CEO or "fake president" fraud, and cases of this kind keep making the headlines.

Preventing losses due to cyber crime

Around 70% of cyber claims involve a member of staff inadvertently opening the door to cyber criminals by clicking on a link, opening an e-mail attachment or entering information on a website. This is precisely why it is so important to train your staff to spot fake e-mails and websites and thus minimize cyber risks for your company.

Cyber insurance from AXA: effective protection for your assets and those of your clients

Cyber insurance includes a free training platform and coverage for data recovery, loss of income, and additional costs as well as costs incurred through data protection violations and claims for damages. With AXA, you can insure against manipulation of e-banking and social engineering for both your company's assets (own loss) and those you manage for your clients (liability claims) up to a value of CHF 500,000.

Link to prevention service:
https://www.axa.ch/en/corporate-customers/offers/inventory-real-estate/cyber-insurance/cyber-prevention.html

Link zur VSV-Seite:
https://www.axa.ch/de/partner/vsv.html

Biography

Andreas Corradini is Senior Underwriter Cyber Insurance at AXA. He studied law at the University of Zurich before starting his career in the legal department of what was then Winterthur Insurance. After holding a number of positions in property insurance claims as well as underwriting for property and technical insurance, Andreas Corradini joined the newly formed Cyber Insurance team for corporate customers in 2020.