AFM concerned about increasing cyber threats: ‘It is not a matter of if, but when and how’

The Dutch Authority for the Financial Markets (AFM) has issued a warning regarding the increasing threat of cyberattacks against the financial sector. Chair Laura van Geest emphasized that such incidents are inevitable, identifying financial institutions as primary targets due to their high level of digitalization and central role in the economy. The rise of sophisticated AI models has further heightened these risks, as bad actors leverage new technology to exploit system vulnerabilities. The AFM stresses that while financial institutions are taking defensive measures, a collective effort involving governments, businesses, and consumers is essential to build resilience against potential service disruptions.

Separately, the AFM highlighted the growing popularity of cryptocurrency in the Netherlands, noting that one in eight citizens now holds digital assets. Despite the implementation of European MiCAR regulations, the regulator warns that significant risks remain due to market volatility and the use of unregulated services. Furthermore, the AFM cautioned that an upcoming wave of inheritances and wealth transfers could expose consumers to complex financial products and increased risks of fraud.