Blog

How to strengthen your defences against cyber threats

Graeme Stewart

Graeme Stewart

3 October 2023

The recent HM Treasury’s consultation paper on a ban on cold calling for consumer financial services and products reminds us of the real risk of cybercrime to advisory firms.

Fraud is the largest crime type and now accounts for over 40% of all estimated crime in England and Wales. In 2022 there were 3.7 million estimated fraud offences, and 1 in 15 adults were a victim of fraud. The total cost to society of fraud against individuals in England and Wales was estimated to be at least £6.8 billion in 2019- 20. This includes the money lost by victims, the cost of supporting victims, and the costs of recovery, investigation, and prosecution of fraudsters.

In this context, firms need to be ever mindful of the threats posed. However, there’s a lot of help and support out there:

Firms can support themselves and their clients by looking at the Scamsmart support material that’s also freely available from the FCA.

However, advice firms should also be aware that if they’re unfortunate victims of cybercrime, they may need to report this to the FCA.

Reporting cybercrime to the FCA

Under Principle 11 of the FCA’s principles for business, firms are required to deal with the FCA in an open and cooperative way, and disclose anything relating to the firm of which the FCA would reasonable expect notice.

The FCA expects a firm to report material operational incident. An incident may be material if it:

  • Results in significant loss of data
  • Results in the unavailability or control of a firm’s IT systems
  • Affects a large number of customers
  • Results in unauthorised access to a firm’s information systems

If you consider the incident to be material, you should report this to the FCA by:

  • contacting your named FCA supervisor, if you have one,
  • using the channels on their contact page if you don’t,
  • informing the Prudential Regulation Authority (PRA) if your firm is dual-regulated (by both the FCA and PRA), and
  • following any specific rules or directions that apply

The FCA also states that firms should consider whether you may need to report the incident to anybody else:

  • If you believe the incident is criminal, you should contact Action Fraud via its website or by calling 0300 123 2040.
  • If the incident involves a data breach, you may need to report it to the Information Commissioner’s Office (ICO). Please note that the ICO require you do this within 72 hours of becoming aware of the breach, where feasible.
  • For cyber incidents, you may need to report it to the National Cyber Security Centre.
  • It also helps other firms if you can share details of the incident on the CiSP platform.

Fighting cybercrime must be a collaborative effort in order to ensure our industry retains its integrity and the confidence of our clients. Please get in touch if you’d like to know more.

Start the discussion

Reading this blog counts towards your CPD!

Click here to add this session to your Paradigm CPD log.


7 October 2024

What may impact BTL and Resi markets in 2025?


1 October 2024

Why Gen Z could be the perfect match for protection


30 September 2024

Self-employed mortgages can be easy, if you choose the right lender


26 September 2024

Lenders and regulators must be careful not to add to adviser disillusion


19 September 2024

There may be trouble ahead…


2 September 2024

Source Go: The Modern Answer to the GI Question


29 August 2024

Pre- and post-mini Budget remortgagors need guidance in transformed market


23 August 2024

Guardian's 2023 claims report: a milestone worth celebrating


14 August 2024

Rate cuts are a positive story for advisers


7 August 2024

Mind the gap (s)...


1 August 2024

The mortgage market is set for a teeming H2


29 July 2024

Aldermore are backing more of your clients to go for it


22 July 2024

YOU SAID, WE DID!


12 July 2024

A surge of optimism for the market


9 July 2024

Distribution of Wealth


3 July 2024

Consumer Duty one year on – what might happen next?


24 June 2024

How to increase your protection business


17 June 2024

Consumer Duty will mark new era of continuously changing advice


6 June 2024

Mental Health Matters: Workplace Wellbeing


21 May 2024

Advise or refer? Ensuring the best possible outcomes for your clients


15 May 2024

Darlington Criteria Updates


14 May 2024

And The Wait Goes On


10 May 2024

Cap on broker fees sparks industry debate


1 May 2024

Expect the unexpected


15 April 2024

Ready, set, remortgage!


12 April 2024

How the mortgage market is failing new arrivals to the UK


11 April 2024

A compliance refresh will lighten unavoidable market stress


4 April 2024

What is driving the Specialist Residential and Buy-to-Let markets this year?


4 April 2024

A Government that prioritises owner occupiers at the expense of the PRS


28 March 2024

What is your website for?


19 March 2024

Exploring the value of value added benefits


4 March 2024

Artificial intelligence – friend or foe to advisers?


21 February 2024

RESTRICTIONS LIFTED?


9 February 2024

Trust your own gut when listening to market predictions


7 February 2024

Strategic thinking - Is this time for a new look at how we work as a business?


8 January 2024

The Name's Bond...


21 December 2023

PTs remain a big part of the marketplace


21 December 2023

Not all wine and roses but outlook is better


15 December 2023

Artificial Intelligence: A vision for the future


12 December 2023

Reflecting on 2023


11 December 2023

Mental Health Matters: Menopause


8 December 2023

Looking ahead: Reasons to be cheerful about the market in 2023


17 November 2023

Why TikTok could be a winning tactic for brokers


30 October 2023

How advisers can improve the quality metrics with insurers


27 October 2023

The Aggregator Market - Friend or Foe?


25 October 2023

Don’t let Charter support remove advice from the mortgage process


3 October 2023

How to strengthen your defences against cyber threats


29 September 2023

White Dragon Communications


8 September 2023

Advisers deserve recognition for keeping borrowers on lender books


8 September 2023

Claims history of an insurance should form core part of assessing true value of insurance and advic


23 August 2023

The good, the bad & the ugly of using Artificial Intelligence (AI)


14 August 2023

Accessibility in your marketing


14 August 2023

Choosing the right social media platform for you


7 August 2023

Staying safe online


4 August 2023

The blasé attitude towards sudden mortgage withdrawals is not good enough


1 August 2023

Is your content compliant?


10 July 2023

The argument for higher proc fees for better quality business is undeniable


22 June 2023

Product withdrawal timescales and how brokers can adapt


1 June 2023

We're not in mini-Budget territory yet!


24 May 2023

Skipton’s 100 per cent mortgage should be replicated, not feared


30 April 2023

Protection And Mortgage Fair Value Assessments – What Is My Actual Responsibility?


6 April 2023

Lenders will compete on mortgage rates, but don’t expect a price war


27 March 2023

Vulnerable Customers and Economic Abuse


10 March 2023

Tell borrowers to stop waiting for mortgage rates to fall


7 March 2023

Mixed messages from Bank of England boss ahead of MPC meeting


6 March 2023

Take the Consumer Duty seriously when it comes to protection


17 February 2023

Mortgage Market Update


10 February 2023

Let’s not be hasty and write off this year’s property purchase appetite


6 February 2023

Implementing Consumer Duty


9 January 2023

Income Drawdown – moving with the times


9 January 2023

Why it’s so important you tell us about your vulnerable customers


5 January 2023

Why advisers are so vital in the mortgage market


Paradigm

THIS SITE IS FOR PROFESSIONAL INTERMEDIARY USE ONLY AND NOT FOR USE BY THE GENERAL PUBLIC.

APCC MemberConsumer Duty Alliance

Paradigm Consulting is a Member of the Association of Professional Compliance Consultants and also the Consumer Duty Alliance.

Paradigm Consulting is a trading name of Paradigm Partners Ltd
Office address: Paradigm Partners Ltd, Paradigm House, Brooke Court, Wilmslow, Cheshire, SK9 3ND
Paradigm Partners Ltd is registered in England and Wales. No.09902499. Registered Office: As above

Paradigm Mortgage Services LLP
Office address: 1310 Solihull Parkway, Birmingham Business Park, Birmingham B37 7YB
Registered in England and Wales. Company No: OC323403. Registered Office: Paradigm House, Brooke Court, Lower Meadow Road, Wilmslow, SK9 3ND
Paradigm Mortgage Services LLP is a Limited Liability Partnership.

Paradigm Protect is a trading name of Paradigm Mortgage Services LLP
Office address: 1310 Solihull Parkway, Birmingham Business Park, Birmingham B37 7YB
Paradigm Mortgage Services LLP is registered in England and Wales. Company No: OC323403. Registered Office: Paradigm House, Brooke Court, Lower Meadow Road, Wilmslow, SK9 3ND
Paradigm Mortgage Services LLP is a Limited Liability Partnership.