‘We’re being attacked all the time’: how UK banks stop hackers

TruthLens AI Suggested Headline:

"UK Banks Enhance Cybersecurity Measures Amid Rising Threats"

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AI Analysis Average Score: 7.4
These scores (0-10 scale) are generated by Truthlens AI's analysis, assessing the article's objectivity, accuracy, and transparency. Higher scores indicate better alignment with journalistic standards. Hover over chart points for metric details.

TruthLens AI Summary

The threat of cyber-attacks on UK banks has become a pressing concern, with executives acknowledging the potential chaos that could ensue from a successful breach. A cyber-attack could lead to the failure of millions of direct debits, leaving individuals unable to pay rents, mortgages, or wages. The implications extend beyond mere inconvenience; they could provoke panic among customers, leading to runs on banks as people withdraw their funds out of fear. This scenario is not hypothetical but rather a recognized risk within the financial sector, categorized as critical national infrastructure. To combat this threat, banks are investing billions into cybersecurity, with HSBC's UK chief executive Ian Stuart highlighting that cybersecurity has become their largest expense. The financial industry is expected to allocate around 11% of its IT budgets to cybersecurity by 2025, amounting to approximately $32 billion, reflecting the serious nature of this evolving threat landscape.

As the nature of bank heists has shifted from physical robberies to sophisticated cyber-attacks, banks are under constant pressure to bolster their defenses. Experts like Stuart McKenzie from Mandiant Consulting emphasize that banks have a better understanding of the risks compared to other industries, leading to significant investments in security measures. The Bank of England has recognized the persistent nature of cybersecurity risks and has implemented a framework for banks to enhance their resilience. This includes the innovative CBEST program, where ethical hackers simulate attacks to test vulnerabilities. Despite these efforts, the attack surface for banks continues to grow, complicating the task of securing systems. Regulators are also preparing for the inevitability of cyber-attacks by promoting robust response plans among banks. Ultimately, protecting customer data and maintaining trust are paramount for banks, as any breach could severely damage their reputation and customer confidence.

TruthLens AI Analysis

The article sheds light on the ongoing threat of cyber-attacks faced by UK banks and the extensive measures they are taking to protect themselves. It highlights the potential consequences of such attacks on the financial system and emphasizes the urgency and scale of cybersecurity investments in the banking sector.

The Urgency of Cybersecurity Investments

Banking executives are acutely aware of the risks associated with cyber-attacks, especially considering their critical role in the national infrastructure. The article notes that a successful attack could lead to widespread chaos, affecting millions of people due to disrupted financial transactions. This urgency has prompted significant investments from banks, with HSBC's CEO indicating that protecting IT systems has become their largest expense. The financial implications are staggering, with banks projected to spend billions on cybersecurity measures in the coming years.

Public Perception and Fear

This reporting aims to instill a sense of awareness and urgency among the public regarding the vulnerabilities of the banking system. By illustrating the potential fallout from cyber-attacks, the article seeks to foster a narrative that emphasizes the importance of robust cybersecurity measures. The fear of disruption might also lead the public to support increased funding and initiatives aimed at bolstering cybersecurity in financial institutions.

Hidden Agendas or Information Suppression

While the article does not overtly suppress information, it does focus heavily on the financial implications of cyber-attacks without discussing the broader context of technological vulnerabilities or the adequacy of current cybersecurity measures. This could lead to a perception that the banking sector is under siege, potentially diverting attention from other systemic issues in the financial industry.

Manipulative Elements

The article could be seen as somewhat manipulative in its framing, as it emphasizes the constant threat of cyber-attacks without providing a balanced view of the current cybersecurity landscape. The language used, such as "we’re being attacked all the time," may induce anxiety among readers, which could lead to calls for more stringent regulations or oversight in the banking sector.

Comparative Context

When compared to other reports on cybersecurity, this article aligns with a growing trend of highlighting vulnerabilities in critical infrastructure. It reflects a society increasingly aware of digital threats, paralleling similar discussions in other sectors, such as healthcare and retail. This alignment suggests a broader narrative on the need for enhanced cybersecurity measures across various industries.

Impact on Society and Economy

The implications of this article are significant, as it could lead to increased public demand for stronger cybersecurity regulations and practices. This, in turn, could affect the banking sector's operational costs and profitability. Additionally, the potential for panic among consumers regarding their financial security could lead to shifts in banking behaviors, such as increased withdrawals or a preference for cash transactions.

Target Audience

This article is likely to resonate more with stakeholders in the financial sector, policymakers, and the general public concerned about cybersecurity. It appeals to those who prioritize the safety and security of their financial assets, thereby potentially garnering support for increased cybersecurity investments.

Market Reactions

The emphasis on cybersecurity in the banking sector could influence stock prices of financial institutions, particularly those that are perceived as lagging in their cybersecurity measures. Investors may react positively to banks that publicly commit to bolstering their cybersecurity frameworks, viewing them as more resilient to potential threats.

Geopolitical Context

While the article primarily focuses on the UK banking sector, it reflects a broader global concern regarding cybersecurity threats that transcend national borders. The discussion around cyber-attacks is increasingly relevant in geopolitical contexts, as nations grapple with issues of cyber warfare and espionage.

Use of AI in Reporting

There is no clear indication that AI was directly used in the writing of this article; however, the structured presentation of data and projections may suggest the influence of analytical tools in gathering information. If AI were involved, it could have shaped the narrative by emphasizing the urgency of the issue and the financial implications for banks.

In conclusion, this article presents a credible account of the cybersecurity challenges faced by UK banks, while also promoting a sense of urgency around the need for enhanced protective measures. The language and framing used suggest a potential for inducing public concern, which, while informative, may also serve to manipulate perceptions of security within the financial system.

Unanalyzed Article Content

It is every bank boss’s worst nightmare: a panicked phone call informs them a cyber-attack has crippled the IT system, rapidly unleashing chaos across the entire UK financial industry.

As household names in other industries, including Marks & Spencer, grapple with the fallout from such hacks, banking executives will be acutely aware that, for them, the stakes are even higher.

Within hours of a successful bank hack, millions of direct debits could fail, leaving rents, mortgages and wages unpaid. Online banking may be blocked, cash machine withdrawals denied, and commuters left in limbo as buses and petrol stations reject payments. News of the attack could spark panic, leading to a run on rival lenders, as customers pull money from their accounts amid fear the disruption could spread.

This situation may seem far-fetched but it is not a long way off from the government’s “reasonable worst-case scenario” if a sophisticated cyber-attack hit a big UK bank. With the financial industry among 14 sectors categorised as “critical national infrastructure”, it is no surprise that a hack islisted on the national risk register,which models some of the biggest threats facing the UK.

Billions of pounds are being spent preventing the kind of devastating attacks thatshut down systems at three retailers,Harrods, the Co-op and M&S, this spring.

“The amount of money [that] banks, all of us, will be spending on our systems is enormous today. And it has to be,” the UK chief executive of HSBC, Ian Stuart, told MPs last month. “We are being attacked all the time.”

HSBC alone is having to invest hundreds of millions of pounds to protect itself, Stuart said. “This is our biggest expense.”

Globally, banks are expected to allocate 11% of their IT budgets to cybersecurity in 2025, according to an EY study. With those IT budgets forecast to hit$290bn (£214bn)this year, according to the research body Celent, banks could end up shelling out $32bn on cybersecurity by December.

It is a new era for high street banks, as attempted heists evolve from criminals in balaclavas hitting physical branches and vaults to state-sponsored hackers and independent cybergroups looking for ransom payments or merely to cause mass disruption.

“Banks have understood the risk far better than probably a lot of other industries. They’ve invested far more in security,” said Stuart McKenzie, a managing director for Mandiant Consulting, a Google-owned cybersecurity company that works closely with a number of lenders in the UK.

Last month the governor of the Bank of Englandtold the BBCthat cybersecurity was a risk that was never going away because it continually evolved. “We’re dealing with bad actors who will continually refine the lines of attack. And I always have to say to institutions: ‘You’ve got to continue to work at this,’” Andrew Bailey said.

However, protecting systems is a complex task. Most high street banks operate on an onion-like IT system, with layers upon layers of updates, patches and add-ons. Throw third-party software and cloud providers into the mix, and banks are left playing whack-a-mole.

“We call it the attack surface,” Alan Woodward, a professor and cybersecurity expert at the University of Surrey, said. “The attack surface has actually increased, so the opportunities for attackers to try to look for ways in have also increased.”

No bank hacks to date have been disruptive enough to bring a country to an economic standstill – althoughApril’s power blackout across the Iberian peninsulaexposed how reliant modern societies are on digital payments. Where hackers have been successful, they have more often than not targeted banks’ customer data and accounts.

In 2021, attackers on the US bank Morgan Stanley stole personal informationbelonging to its corporate clientsby hacking into a server used by a third-party consulting company.

A year earlier, at the start of the Covid pandemic, attackers got hold of staff mailboxes at the Italian state-owned bank Monte dei Paschi, and sent emails to clients with voicemail attachments.

Meanwhile, one ofthe most devastating hacks on a UK bankcame in 2016, when criminals found a way to guess bank card details and steal almost £2.5m from 9,000 accounts at Tesco Bank. Tesco wasforced to halt all online and contactless card transactionsafter struggling to block fake purchases taking place around the world, including Spain and Brazil.

Tesco Bank eventually reimbursed customers in full.

The National Cyber Security Centre says customers who suspect a hack should contact their bank using their official website or social media channels, and avoid using any links or contact details they have been sent. The organisation should be able to confirm if a hack has actually taken place, how they have been affected and what they need to do next.

The Bank of England has tried to stay a step ahead. Policymakers officially recognised cybersecurity as a risk to financial stability in 2013 and started to implement cyber resilience standards for all regulated banks and insurers under its supervision.

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That involved the launch of “CBEST”, a world-first scheme in which ethical hackers test a single bank’s potential vulnerabilities with a cutting-edge attack.

“Nothing is 100% secure,” Woodward said, but the UK banking system comes close. “A lot of it has to do with the oversight”, particularly by the central bank. “They gather threats and intelligence from MI5, GCHQ, NCSC, all the usual people, and then they actually try real scenarios out to see how robustly a bank can withstand that,” he said.

The central bank also coordinates multiday cyberwar games as part of its SIMEX – simulation exercise – programme every two years to test City companies’ security.

Authorities are tested, too, and the Bank, the Financial Conduct Authority, the Treasury and the National Cyber Security Centre review their response to a range of devastating scenarios.

Regulators are not just checking banks’ preventive measures. Policymakers assume a cyber-attack will eventually be successful and are therefore pushing banks to prepare their response and recover plans that would avoid long-lasting outages that could bring pockets of the economy to a standstill.

The Cross Market Business Continuity Group, which brings together regulators and members of the bank industry body UK Finance, boasts the ability to summon about 100 companies for emergency group calls in under an hour to discuss a potential attack.

Fending off a hack is seen as vital to protect an industry that ultimately trades on trust: customers expect lenders to keep their information, wages and life savings protected from outside threats.

“If somebody breaks in there and manages to make a fraudulent transaction … you’re not going to trust that bank again with your money, are you?” Woodward said.

Banks have already experienced the backlash that can erupt from mere IT outages, without any malicious actors trying to disrupt the banking system or steal data and cash.

TSB has for years been working to restore its reputation after itsIT meltdown in 2018, caused by its botched separation from Lloyds’ internal systems, which left millions of banking customers locked out of their accounts for weeks. The lender was subsequentlyfined £48m for “widespread and serious” failings.

Outages have continued to plague customers of Britain’s largest banks and building societies, who suffered the equivalent of more thana month of IT failuresbetween January 2023 and February 2025, according to the data gathered by the parliamentary Treasury committee.

“The security of customer money and data is of paramount importance to banks, not just because it’s a requirement under regulation but because it’s the way that banks do business,” Laura Catterick, a director focused on resilience and cybersecurity at UK Finance, said.

“I would say, never rule out a cyber-attack. But I would say, there should be confidence in the amount of cyber defences in place.”

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Source: The Guardian