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Are you protected against cyber attack – FCA warns brokers

An online attack can leave you exposed to viruses, data breaches, loss of data, loss of connectivity, and impact your staff, your customers and the reputation of your business – it will also cost you money.
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February 25, 2020

CONNECTIVITY is essential for any company and the internet is an indispensable tool.

But the functions you need to run your business – email, browsing, cloud, WiFi, software, hardware – are all vulnerable to attack.

An online attack can leave you exposed to viruses, data breaches, loss of data, loss of connectivity, and impact your staff, your customers and the reputation of your business – it will also cost you money.

The Financial Conduct Authority has expressed increasing concern over the possibility of cyber attacks and whether businesses are adequately protecting themselves and their customers.

It has warned that it will be checking up on brokers to make sure they have adequate online protection in place.

The FCA has written to leasing brokers setting out the key risks they could pose to their consumers or markets.

It has examined a range of information and data, including firms’ regulatory histories and the type and number of complaints to assess how credit brokers could cause harm.

One of the areas of concern for the FCA is that some businesses are not considering or managing the risks to their business from technology, cyber- attacks and inadequate IT resilience.

Even with a firewall or antivirus software in place, businesses are still vulnerable.

An open port is the most common way a hacker can break into a system to harvest data or initiate devastating ransomware attacks.

In its letter, the FCA said it expects brokers to take notice of the areas of concern, examine the business and consider whether changes are required to reduce harm or potential harm to consumers. 

The Authority said it will act where it finds “that firms have not put their customers at the heart of how they do business. For example, where they have put their own profits and income above paying due regard to customers’ interests and treating them fairly”. 

It added that it will identify firms which appear to cause such harm.

Whatever the size of your business you should have appropriate governance and systems and controls in place.

The FCA warned that brokers will be expected to provide evidence of these and wider actions to safeguard consumers.

It added: “If you cannot do this we will make full use of our regulatory powers to address the weaknesses we have identified.”

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Chris Wright

Chris Wright

Chris Wright has been covering the automotive industry nationally and internationally for 30 years. Following spells with consumer titles he became News Editor of Automotive Management (AM), Editor of Automotive International, International Editor for Detroit-based Automotive News, and Editor of Dealer Update. He has also co-authored several FT Management Reports and contributes regularly to Justauto.com

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