Int'l media say data theft may hurt Singapore's private banking hub reputation
By Kimberly Spykerman
POSTED: 06 Dec 2013 19:53
Some reports by international media say Standard Chartered Bank’s security breach threatens to undermine Singapore's reputation as a private banking hub for Asia. The theft of 647 wealthy clients' monthly bank statements from Standard Chartered Bank Singapore has made global headlines.
SINGAPORE: Some reports by international media say Standard Chartered Bank’s security breach threatens to undermine Singapore's reputation as a private banking hub for Asia.
The theft of 647 wealthy clients' monthly bank statements from Standard Chartered Bank Singapore has made global headlines.
The theft occurred from one of the servers of a third-party service provider - Fuji Xerox - which prints statements for StanChart.
The data was discovered in a laptop seized from alleged hacker James Raj Arokiasamy - who goes by the moniker The Messiah - in the course of police investigations.
Media reports have reported that the theft is the latest in a series of troubles to hit UK-based StanChart in recent months.
The Wall Street Journal said that the bank recently warned its operating profit would drop this year for the first time in a decade.
Industry experts quoted by Bloomberg also said the theft of client information will raise questions about StanChart's ability to deal with client data.
The Financial Times added that the incident comes as a blow to the bank in Asia - its largest market with confidentiality being a cornerstone of a private bank's ability to compete for business.
Reuters noted that theft of such client data has become more common, with several banks in Switzerland having had data stolen over the past five years.
Experts warn that more of such thefts could take place globally over the next couple of years as hackers see potential profit in accessing bank data and selling it.
But one concern raised is whether the security breach will threaten Singapore's reputation as a private banking hub for Asia.
Bloomberg reported that Singapore hosts about S$800 billion in offshore assets, and is Asia's largest wealth management centre.
StanChart emphasised on Thursday that no unauthorised transactions resulted from the latest incident.
The Monetary Authority of Singapore (MAS) said this is an isolated incident. It will review the bank's investigation report and consider if regulatory action is warranted against it.
MAS also said the incident underscores the need for financial institutions to be more vigilant.
- CNA/xq
- wong chee tat :)
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