{"id":3465,"date":"2024-12-30T10:04:27","date_gmt":"2024-12-30T09:04:27","guid":{"rendered":"https:\/\/wealthapi.eu\/?p=3465"},"modified":"2026-03-16T15:41:52","modified_gmt":"2026-03-16T14:41:52","slug":"dora-setting-a-new-standard-for-cybersecurity-in-finance","status":"publish","type":"post","link":"https:\/\/wealthapi.eu\/en\/dora-setting-a-new-standard-for-cybersecurity-in-finance\/","title":{"rendered":"DORA: Setting a New Standard for Cybersecurity in Finance"},"content":{"rendered":"

The EU has implemented a vast array of regulations designed to oversee the financial sector. This is essential for maintaining a stable and secure financial market, protecting consumers, and fostering fair competition. <\/span><\/p>\n

Now, DORA, the Digital Operational Resilience Act, is being introduced. This regulation focuses on strengthening the cybersecurity and digital resilience of the financial sector. Its aim is to better equip EU financial institutions to withstand cyberattacks and digital risks, thereby ensuring the stability of the financial system. <\/span><\/p>\n

As of January 17, 2025, DORA will be applicable to all financial institutions, including banks, savings banks, insurance companies, asset managers, and financial service providers. This broad scope encompasses entities such as factoring or leasing companies, and even account information service providers like wealthAPI. <\/span><\/p>\n

\"DORA-as-imagined-by-AI\"<\/span><\/h2>\n

Cyberattacks in the financial sector: A growing threat<\/span><\/h2>\n

The interest of cybercriminals in financial institutions is unsurprising, given that these companies deal with two highly valuable assets: money and sensitive data. With the financial sector being highly digitized, it presents an attractive target for cyberattacks. <\/span>2023<\/span><\/a> The number of cyberattacks targeting banks is on the rise. In 2023, BaFin received 235 reports from banks about severe IT issues, including cyberattacks. Although the 2024 data is not yet final, it’s expected to show an increase. This trend is mirrored globally, with JP Morgan reporting <\/span>a staggering 45 billion suspicious cyber events<\/span><\/a> per day in spring 2024.<\/span><\/p>\n

hrough DORA, the EU seeks to enhance cybersecurity and digital resilience in the financial sector. By mandating stricter digital safeguards for financial institutions, the EU aims to mitigate risks such as data breaches, ransomware attacks, and operational disruptions. The protection of sensitive customer information, including account and payment details, is a paramount concern. <\/span><\/p>\n

The overarching goal of these stringent requirements is to safeguard the stability of the financial system. Cyberattacks on individual financial institutions can have systemic implications, affecting the broader financial market. A case in point is the November 2023 cyberattack on the US subsidiary of the Industrial and Commercial Bank of China, which temporarily disrupted US Treasury bond trading and necessitated manual clearing. <\/span><\/p>\n

Cyberattacks pose a dual threat: they can disrupt critical systems and erode public trust. It is clear that without robust security measures to protect financial data, consumers will be hesitant to embrace digital banking services. The traditional savings account under the mattress could once again become the preferred method of saving. <\/span><\/p>\n

DORA: Laying the Groundwork for a Secure Digital Financial Future<\/span><\/h2>\n

While DORA presents challenges for financial institutions, it ultimately enhances their digital resilience, offering long-term advantages. But what does this regulation entail? What specific actions are required of financial service providers? The mandates can be categorized into several key areas: <\/span><\/p>\n