Cybersecurity at Risk: Financial Data Breach
Coordinating Minister for Politics, Law, and Security Mahfud MD confirmed on Monday (9/12) that data of high-ranking government officials had been leaked - adding to the ever-growing worry of the recent data insecurity controversy. Recently, a hacker going by the name Bjorka has been a topic of conversation after declaring its move on divulging information sourcing from registered SIM data, the National Intelligence Agency (BIN), and the General Election Commission (KPU). From selling 105 million data of Indonesian citizens to obtaining government bureaucrats’ data, the authority has taken active swift measures as a response to Bjorka’s deranged acts. Under President Joko Widodo’s directive, the Indonesian government has made a Data Protection Task Force that involves the National Cyber and Encryption Agency (BSSN), BIN, the Ministry of Communication and Informatics (Kominfo), and the Police to deal with the matter. Executive director of the Institute of Policy Research and Advocacy (ELSAM), Wahyudi Djafar, believes that the recent data breaches are only the thin end of the wedge. He claimed that the country’s cyber security is only bound to worsen if the government fails to construct an out-and-out legal framework for data insurance. In response to the issue, the Head of BSSN, Hinsa Siburian stated that the agency is currently working with the owners of the data suspected of being hacked to conduct a system valuation. Moreover, Communications and Information Minister, Johnny G. Plate, conveyed that private companies are also responsible for securing data owned by members of the public by elevating their digital talents’ capabilities. In line with the digital literacy advancement worldwide, information technology continues to face countless threats over the years.
Amidst the recent data breaches, the safety of digital asset investments such as crypto assets, has also been a concern due to similar high cases. According to a research conducted by Chainanalysis, thievery of crypto assets in the form of coins and tokens by hackers surged 60% from US$1.2 million in the first half of 2022. Furthermore, in August 2022, two significant hacking incidents occurred, US$190 million Nomad cross-blockchain was stolen, and a digital wallet named Solana was hacked for a total of US$5 billion. The usage of data storage with the DeFi protocols facilitates the occurrence of data theft. Chainanalysis research agency explained that the DeFi protocol is highly insecure due to its open source code that cybercriminals can efficiently study. Moreover, the popularity of the aforementioned protocol makes several companies immediately launch their products to the market without considering and conducting a thorough safety test. Crashes in the crypto market do not affect the activity of data leaking since cybercriminals gradually seek opportunities for hacking. Regarding these continuously occurring incidents, investors in the crypto industry increase their platform security systems and educate customers to distinguish safe crypto projects as medium of investment. In addition, investors should consider seeking cryptocurrencies with specific projects and secure track records to avoid fraud cases caused by irresponsible developers. To further overcome these predicaments, the ability to track the crypto asset movement along the blockchain needs to be developed.
With the name of Bjorka on the rise, data security concerns continue to loom. The Financial Services Authority (OJK), especially the department that oversees non-bank financial intermediaries, has also asked the industry to be more careful in maintaining customer data. Chief Executive of OJK Non-Bank Financial Industry Supervision, Ogi Prastomiyono, stated that companies in the non-bank industry should be more careful and pay additional attention. He also added that the digital world's sophistication makes the issue even more complicated. In the medium and long term, OJK will, among other things, focus on compiling a roadmap in the insurance sector, financing, and microfinance institutions. OJK is also planning to finish the process of reforming the Non-Bank Financial Industry sector with the aim that it could grow and develop in a healthy and sustainable manner, with the support of adequate capital, qualified human resources, followed with the implementation of good governance and effective risk management. The number of public complaints has pushed them to focus on strengthening supervision and settlement of customer complaints on insurance products as well as encouraging improvements in the marketing and management of Investment-Linked Insurance Products. All in all, strengthening monitoring and solving problems in the Non-Bank Financial Industry is expected to increase consumer protection and strengthen the non-bank financial services industry which is healthier.
Sources:
CNBC Indonesia
Kompas
Tempo
What would you like to learn next week? Comment, Like, and Share