All banks in the United Kingdom have been asked by the government to table and explain the means that they would use or the technology that they possess in case of a possible cyber-attack. It was a surprise for some banks and other financial institutions that had never thought of such an idea. It’s a matter that is of great concern, but still some banks took the issue lightly. Some banks don’t even have modernized technology that could safeguard them from potential hacking. A company or bank that has no technological protection is a hub for hackers to manipulate and harvest what they want, especially critical financial data. The Bank of England, together with the Financial Conduct Authority, had reported having given all financial firms three months for them to detail how they will be able to respond if their financial systems have failed or probably have been hacked.
Experts said that consumers of the TSB bank were not able to access online banking for one month. This transpired following a botched system that was being upgraded in April. The Bank of England reported that it’s an issue of significant concern. It should not be neglected. Some banks may be ordered to take technological action to protect their systems in the event that their strategies are judged inadequate. Financial Conduct Authority and the Bank of England emphasized that all senior managers of all the banks will be held liable for any extended disruption of the services to the public. Currently, two firms have launched a consultation seeking the remarks of their consumers as well as the insurers, banks and other financial corporates. According to the regulators, they have already warned that the upgrading of computer systems would be essential so that they can match the services that are provided by new financial start-ups to avoid a possible disruption.
They also noted that 48 hours is an acceptable time limit for disruption of the services offered to the public. Andrew Bailey, the Financial Conduct Authority executive, and Jon Cunliffe of the Bank of England reported that active disturbance could significantly influence financial stability, threaten the feasibility of specific companies and financial market substructures. Subsequently, it can harm the customers. The executive managers noted that if the contingency strategies that are being forwarded to the banks and other financial establishments were judged to be unsuitable, then they will be asked to make their systems more resistant.