Investment platforms moving ‘decisively’ to address AI-powered cyber threats

Retail investment platforms are moving ‘decisively’ to address the challenges posed by artificial intelligence (AI)-powered cyber threats, leading a coordinated response to a sharp rise in cyberattacks, a report from The Platforms Association and Deloitte has stated.

Their Cyber ‘State of the nation’ Report for Investment Firms and Platform Providers found that 55 per cent of firms had seen an increase in cyberattacks over the past year.

In response, companies managing UK retail investments had moved to meet the threats posed by AI-powered phishing, ransomware campaigns, and supply chain vulnerabilities.

The report, which surveyed firms across The Platforms Association's membership, highlighted that cyber security had moved from the back office to the boardroom, with more than half of platforms increasing their cyber budgets and investment now being driven by digital transformation rather than regulatory compliance alone.

More than three quarters (78 per cent) of firms had a dedicated security chief, while 67 per cent discussed cyber risk at board level every quarter.

Investment was being concentrated to prioritise threat detection and response capabilities, with 89 per cent of firms investing in this area.

Meanwhile, 44 per cent were strengthening identity and access management to counter credential theft and automated account takeover attempts.

The report also highlighted three technology shifts already being incorporated into strategic planning: password-free authentication, autonomous AI systems requiring new access controls, and preparing encryption standards for future quantum computing threats.

“Cyber security is no longer a back-office technical concern,” said The Platforms Association chief executive, Keith Phillips.

“It sits at the heart of how our member firms serve their clients, meet their regulatory obligations and sustain the trust that underpins the entire retail investment ecosystem.

“The threats we face are evolving fast, which is precisely why collective action matters. This report is a testament to what our sector can achieve when it works together.”

The Platform Association Cyber Security Working Group co-chair and AJ Bell chief information security officer, Daniel Harris, added: “Collaboration and sharing of insight is essential for security teams to succeed in today’s threat environment.

“It has been a key objective of the cyber security working group to share sector relevant best practice with entire platforms industry, this report shows how much unites us and demonstrates the potential of our collective strength.”

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