Chapter 3 Cybersecurity

Question 1

What is cybersecurity?

Answer 1

The ability to protect or defend the use of cyberspace from cyber-attacks

Question 2

What are the 5 most common cyber attacks in the financial industry?

Answer 2

1. Malware
2. Web application attacks
3. DDOS attacks
4. Man - in - the middle attacks
5. Ransomware attacks

Question 3

Explain 7 ways to mitigate cyber security risks

Answer 3

1. Access controls on customer information systems
2. Threat modelling conducted by software developers
3. Encryption
4. Dual control procedures
5. Systems that detect an attempt or actual attack
6. Well-planned audit program
7. Response programs

Question 4

What are aspects of the blockchain which make it more resilient to cyber attacks? (4)

Answer 4

1. Distributed architecture
2. Consensus validation mechanism
3. Encryption
4. Transparency

Question 5

What are disadvantages of the blockchain in terms of cybersecurity? (4)

Answer 5

1. Cyber security risks arising from human error
2. Social engineering
3. Unintended sharing of private keys
4. Users are hard to control and can negatively contribute to the risk