Do hacker groups pose a risk to organizations? Study on financial institutions targeted by hacktivists

• Main Author: NIEMELAE, Mikko Samuli
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2023
• Subjects: cyber risk; cybersecurity; darkweb; hacktivists; hacktivism; cyberattack; Finance; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/etd_coll/539; https://ink.library.smu.edu.sg/context/etd_coll/article/1537/viewcontent/GPBA_AY2018_DBA_Mikko_Samuli_Niemelae.pdf
• Institution: Singapore Management University

Publication date: 5 September 2023 In the digital era, technological progress has been shadowed by an escalation in cybersecurity threats, notably impacting the financial sector. This research critically examines the influence of hacktivist campaigns—particularly those led by groups like Anonymous—on the cyber exposure of financial services firms listed on the NYSE. Employing Synthetic Controls and analyzing 22 treated firms, the study found that such campaigns significantly enhance the target institutions' deep and dark web exposure, with an average increase of 65% per annum in the subsequent two years from the campaign initiation. Crucially, smaller firms display a heightened susceptibility to these campaigns. The outcomes suggest that financial entities, especially smaller ones, should be proactive, adopting strategies like improved cybersecurity measures, continuous deep and dark web monitoring, employee training, and possibly cyber insurance. Additionally, maintaining ethical business practices and prioritizing transparency can potentially reduce the risk of becoming a hacktivist target.