This is not new because Google was already using 1024 bit security but with this upgrade to 2048 bit, it is time for banks to at least re-visit their security level and offer exper commentary.  Most banks are using 128 bit (RBC for example) with some banks having already gone to 256 bit (Peoples Trust, Standard Chartered, Members Advantage Credit Union) The reason Google are doing this is based on concern that the American Government through the NSA are able to decrypt what we have assumed is secure data transmission. When internet started email and browsing activity was unencrypted and … Continue reading EDIT: This post is corrected – please review comments:- Your email is now orders of magnitude more secure than your online banking–is that right?

This announcement from Yahoo may sound innocuous but it has implications for the downrange targets of this blog, banks.  Our Commitment to Protecting Your Information | Yahoo.com Today we are announcing that we will extend that effort across all Yahoo products. More specifically this means we will: Encrypt all information that moves between our data centers by the end of Q1 2014; Offer users an option to encrypt all data flow to/from Yahoo by the end of Q1 2014; Work closely with our international Mail partners to ensure that Yahoo co-branded Mail accounts are https-enabled. Relevance to Bankwatch: Banks are … Continue reading Implications of internet giants network concerns for banks

Bitcoin is something I have been sceptical about.  I appreciate the mathematical and security wizardry involved but it still feels like a solution seeking a problem at this point.  Today Bitcoin received, from of all places, support from Bernanke and potentially from the US Senate with specific mention of Bitcoin as a future method of money transfer.  What? I cannot for the life of me think why they would even hint at such support for Bitcoin when they cannot even agree on something as mundane as converting to chip cards.  I makes one wonder if there is not some serious … Continue reading What can of worms has the US Fed opened in appearing to support Bitcoin?

In 2009 shortly after the banking crisis was unfolding, I wrote a piece on the danger of spreadsheets.  It turns out that danger costs in the billions.  The siren call of Microsoft Excel In January 2012, losses on a derivatives portfolio that ultimately cost the bank more than $6bn stood at a mere $100m. A review team at that time identified that an important risk calculation for the portfolio was error-prone. Spreadsheets offer a fabulous and awe inspiring power to produce analysis and presentation of numbers that is hitherto unforeseen. The power lies in the functions that allow rapid calculation … Continue reading Spreadsheets–the power and the glory

There is a payments conference on this week in Toronto, and its asking the right question about the future;  What new technologies and products will fundamentally change the way we interact with the payments system?  I would go further and add to “technologies and products”, what companies, e.g. Stripe.  Only by looking at examples will the participants start to see the true potential for change. The Canadian Payments System: Ensuring Stability, Increasing Efficiency and Balancing Interests Session VI – Innovations, Implications, and Next Steps for the Payments Sector Innovations: What new technologies and products will fundamentally change the way we … Continue reading What new technologies and products will fundamentally change the way we interact with the payments system? | CD Howe Conference Toronto

This is interesting.  We know that Cisco routers form a large percentage of the internet traffic yet that is now about to be disrupted by Software Defined Networking (SDN).  Cisco are smartly not allowing this trend to get ahead of them and have been secretly working through a Cisco funded start up, Insieme, to remain firmy part of the new trend. One of the key drivers was when Amazon replaced a planned purchase of $1bilion of routers with an $11 million purchase supported by SDN software. Here’s What Happened When Cisco Lost A $1 Billion Deal With Amazon SDN is … Continue reading Even routers are going virtual – Insieme & Cisco

I recently noted the efforts spearheaded by the Bank of England to create a more integrated (across Banks) cyber security strategy. The Canadian Bank regulator, the Office of the Superintendent of Financial Institutions (OSFI) has developed this template which they will use in future oversight visits.  Frankly I find it weak, lacking breadth in its content and approach.  It is overly skewed towards black and white automatic shutdown in case of events for example.  Rather, art of the reality of cyber security lies in managing greyness and acknowledging such realities as the potential similarity of Denial of Service attacks and … Continue reading OSFI releases Cyber Security Self-Assessment Guidance