ID :
197256
Tue, 07/26/2011 - 12:14
Auther :
Shortlink :
https://oananews.org//node/197256
The shortlink copeid
Overall review of financial computer networks urgently needed
SEOUL, July 26 (Yonhap) -- Computer networks of financial institutions malfunction too frequently these days, inflicting big inconveniences and losses on consumers. These systems are not only vulnerable to hackings or external attacks but are easily shut down even by heavy traffic loads.
The Internet giro system at Korea Financial Telecommunications and Clearings Institute (KFTC) was suspended for three hours on Monday due to some unknown causes. The KFTC is a financial communications hub operating a financial online network for electronic finance and electronic commerce. The institute suspects temporary overload in access traffic as the possible cause of the suspension but it cannot be an excuse. Under any circumstances the computer networks of the financial hub should not be suspended.
The paralysis of an online banking system at Nonghyup, or the National Agricultural Cooperative Federation, which followed a serious hacking at Hyundai Capital Services Co., in April showed how vulnerable the security of the financial industry's computer network systems is.
The computer network system of Nonghyup, a leading lender with about 30 million customers across the country, was shut down for a few days, inflicting direct and indirect losses to customers.
The Kookmin Bank, another major retail bank, also suffered a shut down of its automatic teller machines for three hours recently while home trading systems (HTS) of securities companies experienced frequent malfunctioning, too.
Stock investors were unable to access to the Hyundai Securities Co. last month due to HTS failure while investor information of the NH Investment and Securities Co. was leaked. The Data Analysis, Retrieval and Transfer System (DART) at the Financial Supervisory Service went dead for 40 minutes shortly before the closure of stock market recently.
Experts say most of the accidents in financial computer systems are man-made fiascoes caused by mismanagement of the computer system, and it exposed the financial institutions' lacking of a proper security system.
Many financial companies are too stingy to invest in security systems. The combined investment by financial industries in security systems was tallied at 3 percent out of their total information and technology budget, which is well below the 5 percent recommended by the financial authorities.
There is a view that the Hyundai Capital was unable to be aware of the leakage of personal information of its 1.75 million customers for two months because the company spared the budget for an IT security system.
To prevent the recurrence of similar incidents, financial authorities should make an all-out review of the financial computer network systems and financial companies should boost their investment in IT security systems.
The Internet giro system at Korea Financial Telecommunications and Clearings Institute (KFTC) was suspended for three hours on Monday due to some unknown causes. The KFTC is a financial communications hub operating a financial online network for electronic finance and electronic commerce. The institute suspects temporary overload in access traffic as the possible cause of the suspension but it cannot be an excuse. Under any circumstances the computer networks of the financial hub should not be suspended.
The paralysis of an online banking system at Nonghyup, or the National Agricultural Cooperative Federation, which followed a serious hacking at Hyundai Capital Services Co., in April showed how vulnerable the security of the financial industry's computer network systems is.
The computer network system of Nonghyup, a leading lender with about 30 million customers across the country, was shut down for a few days, inflicting direct and indirect losses to customers.
The Kookmin Bank, another major retail bank, also suffered a shut down of its automatic teller machines for three hours recently while home trading systems (HTS) of securities companies experienced frequent malfunctioning, too.
Stock investors were unable to access to the Hyundai Securities Co. last month due to HTS failure while investor information of the NH Investment and Securities Co. was leaked. The Data Analysis, Retrieval and Transfer System (DART) at the Financial Supervisory Service went dead for 40 minutes shortly before the closure of stock market recently.
Experts say most of the accidents in financial computer systems are man-made fiascoes caused by mismanagement of the computer system, and it exposed the financial institutions' lacking of a proper security system.
Many financial companies are too stingy to invest in security systems. The combined investment by financial industries in security systems was tallied at 3 percent out of their total information and technology budget, which is well below the 5 percent recommended by the financial authorities.
There is a view that the Hyundai Capital was unable to be aware of the leakage of personal information of its 1.75 million customers for two months because the company spared the budget for an IT security system.
To prevent the recurrence of similar incidents, financial authorities should make an all-out review of the financial computer network systems and financial companies should boost their investment in IT security systems.
