Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Australia
  4. Australian Stock Exchange
  5. National Australia Bank Limited
  6. News
  7. Summary
    NAB   AU000000NAB4

NATIONAL AUSTRALIA BANK LIMITED

(NAB)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Virus to virus: pandemic to cyber threat :Mike Dolan

06/11/2021 | 06:00am EDT

(Repeats story published earlier. No change to text. The author is editor-at-large for finance and markets at Reuters News. Any views expressed here are his own)

LONDON, June 11 (Reuters) - A surge in cyber attacks and ransomware hacks since the start of pandemic lockdowns is alarming for a world of finance moving headlong into digital money and remote working longer term.

The flipside of the digital revolution has always been the inevitable rise in its alter ego of online crime - aping the much-vaunted global reach and potential anonymity of the web and leaching off lax corporate and consumer security.

Some attackers are clearly suspected of being state sponsored, with political motives. But others are simply hyper sophisticated organised gangs such as DarkSide.

The remote working boom during the pandemic has seen a surge in such cyber raids and disruptions on companies, banks and government bodies. Victims this past month alone include Colonial Pipeline, Brazilian meatpacker JBS and Ireland's national health service.

Ransomware criminals collected almost $350 million last year, up threefold from 2019, according to members of a public-private group called the Ransomware Task Force.

That seems a modest total in global terms but the disruption caused in lost business or public services and the massive spending on cybersecurity defences will be many multiples of that. U.S. government estimates put the bill from attacks such as 2017's WannaCry hit, blamed on North Korea and targetting hospitals and banks worldwide, into billions of dollars.

Citing different tech industry sources, Fitch credit ratings firm reckons ransomware attacks in particular jumped almost 500% in 2020 - with a quarter of all cyber incidents in legal and finance firms and with global costs estimated at $20 billion. Before the pandemic even hit, the World Economic Forum (WEF) estimated the scale of disruption from cyber crime of all types was running into trillions of dollars.

The WEF's annual risks report this year had "cybersecurity failure" in the Top 10 Global Risks "by likelihood" - with "extreme weather" and "climate action failure" the top two. And almost 40% of its members saw cyber risks as a "clear and present danger" to the world economy over the next two years.

Washington's Center for Strategic and International Studies, meantime, documented more than 100 cross-border cyber attacks on governments and corporations worldwide last year alone.

DIFFERENT KIND OF VIRUS

But individual corporate risk and loss of data is different from fears of lifelong savings or investments being stolen.

S&P Global ratings firm said banks are key targets as direct sources of finance, because of their key infrastructure role and also their possession of a wide range of sensitive personal data.

"Accelerated digitalization and remote working arrangements have increased the financial sector's exposure to cyber risks and could lead to more complex cyber attacks that trigger higher losses," it said, citing poor governance as the big vulnerability and mid-sized U.S. banks with annual revenues of between $10-50 billion as most targeted.

The scale of this problem is clearly multiplying as fast as the digital world itself - and similarly catalysed by the pandemic.

But the additional threat to finance is a huge issue as central banks and governments move into digital money, attempting in part to reclaim the digital money world from cryptocurrencies that have already proven prone to hacking and organised crime.

The mooted rollout of central bank digital currencies (CBDCs) as legal tender over the coming years ups the ante considerably in securing new money. China is already piloting the digital yuan and the European Central Bank said on Thursday it would decide next month on the go-ahead for cyber euro.

"The increased number of central bank touch-points into the economy and the danger of hackers usurping central banks’ role in money creation means the rollout of CBDCs will increase cybersecurity risks," wrote Fitch analysts Monsur Hussain and Duncan Innes-Ker last month.

The flipside of this enormous potential risk to tens of trillions of dollars worth of CBDCs replacing physical cash around the world is simply ever greater centralised spending on cybersecurity and innovation to keep it safe.

And it's this trend that some asset managers have already identified.

"Cybersecurity will be key in enabling 'The Next Big Thing' themes," UBS Global Wealth Management's Chief Investment Officer Mark Haefele wrote last week.

UBS said the size of the global cybersecurity market was some $148 billion last year, growing at an annual clip of about 8% in recent years and set to accelerate to at least 10%. And it fitted neatly into portfolios right now as a 'defensive' position within the pricey tech sector, it added.

If digitization of the world economy is inevitable, then keeping it safe will be paramount. This virus risk may not match the disruption of COVID-19 just yet, but investing in equivalent cyber vaccines may be lucrative nonetheless. (by Mike Dolan, Twitter: @reutersMikeD Editing by Mark Potter)


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
JBS S.A. -0.25% 28.11 End-of-day quote.18.81%
NATIONAL AUSTRALIA BANK LIMITED -0.52% 26.87 End-of-day quote.18.89%
All news about NATIONAL AUSTRALIA BANK LIMITED
06/18NATIONAL AUSTRALIA BANKá : Settles US Class Action Suit
MT
06/17NATIONAL AUSTRALIA BANKá : Australia's NAB to settle U.S. bank bill swap rate cl..
RE
06/17SHANGHAI STOCK EXCHANGE B SHARES IND : China's Consumption Lags in Economic Reco..
MT
06/17Nasdaq closes up on tech stocks strength, as hawkish Fed limits S&P
RE
06/17SHANGHAI STOCK EXCHANGE B SHARES IND : China's Economic Growth Slows as Low Base..
MT
06/15S&P/ASX 200á : Reserve Bank of Australia Meeting Minutes Indicate Policy Adjustm..
MT
06/11VIRUS TO VIRUS : pandemic to cyber threatá:Mike Dolan
RE
06/11Australia shares rise for fourth week as U.S. inflation worries cool
RE
06/09NAB Upgrades Its Macroeconomic Forecasts on Australia, Central Bank
MT
06/09Australian shares end lower as banks, Woolworths drag
RE
More news
Financials
Sales 2021 17 068 M 12 772 M 12 772 M
Net income 2021 6 006 M 4 494 M 4 494 M
Net Debt 2021 - - -
P/E ratio 2021 15,1x
Yield 2021 4,48%
Capitalization 88 468 M 66 219 M 66 201 M
Capi. / Sales 2021 5,18x
Capi. / Sales 2022 5,07x
Nbr of Employees 31 696
Free-Float 99,5%
Chart NATIONAL AUSTRALIA BANK LIMITED
Duration : Period :
National Australia Bank Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends NATIONAL AUSTRALIA BANK LIMITED
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 14
Average target price 27,23 AUD
Last Close Price 26,87 AUD
Spread / Highest target 13,5%
Spread / Average Target 1,34%
Spread / Lowest Target -8,82%
EPS Revisions
Managers and Directors
NameTitle
Ross Maxwell McEwan Group CEO, Managing Director & Director
Gary A. Lennon Group Chief Financial Officer
Philip Wayne Chronican Chairman
Patrick C. Wright Chief Technology Officer
Leslie Durno Matheson Chief Operating Officer