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Why super funds must step away from legacy software systems
Following the recent data breach of NGS Super, which resulted in limited member data being taken from its systems, it’s crucial for superannuation funds to take a look at their own systems and cyber security measures.
According to GBST, cyber security, spyware, and software vulnerabilities had become pressing issues for all organisations as the world became more reliant on technology, and super funds were no exception.
This had particularly come to light with the data breach of NGS Super in March which resulted in limited data being taken from its systems
“Luckily, no money was taken from [NGS Super] member accounts, but with the increasing number and sophistication of cyber attacks and data breaches, it’s crucial for superannuation funds to prioritise the security of their systems and the information they hold,” the technology provider stated.
Recent data indicated that Australian financial services firms had witnessed a 180% increase in targeted attacks during the first half of 2022 to 2.7 million, compared to 989,360 in the second half of 2021.
One of the biggest steps towards improving a fund’s cyber security was by stepping away from its use of legacy software systems.
GBST explained: “Many of these systems are outdated and not equipped to handle modern security threats, leaving them and their valuable members vulnerable to attacks. This is why a modern wealth management administration platform is crucial for managing cyber security threats.”
Modern technology systems offer various security features and features utilising tools like artificial intelligence and machine learning that could boost a fund’s cyber security. It would be able to detect security threats in real time, identify anomalies that could signal a breach, and analyse patterns of behaviour to stop threats before they could cause damage.
GBST elaborated that its own offering, Composer, which used cloud-based capabilities, offered features that legacy systems could not provide.
“For example, cloud platforms use advanced encryption techniques to protect data both in transit and at rest. They also provide real-time monitoring and threat detection, enabling organisations to respond quickly to potential security breaches,” it said.
“Modern technology systems are designed to be scalable and flexible. This means that superannuation funds can easily upgrade and add new security features as needed, without having to completely overhaul their existing systems. For example, they can implement multi-factor authentication to help prevent unauthorised access and protect sensitive information.”
Additionally, it was vital that funds stayed up to date with the latest trends and best practices, GBST said, including regular security audits, staff training, and implementing strong password policies.
AUTHOR
Rhea Nath
Rhea L Nath is a journalist on Super Review and InvestorDaily, with a focus on funds management, superannuation, and institutional investment. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
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