In a letter published last week, Andrew Tyrie, who heads the Treasury Committee, called for “vigorous action” from both regulators and banks to remedy cyber security weaknesses within the sector.
“Bearing in mind that the banks’ main job is to look after their customers’ money, and make it available to them, this is not a happy state of affairs.”
Tyrie cited a KPMG survey that found 12 percent of bank CEOs did not know if their institution had been hacked.
Want the truth?
Banks still have systems running on Microsoft’s OS/2 (released in 1987).
ATM machines run on Microsoft XP (released in 2001)
So updating is not happening and never will.
Banks run 24/7 and have no days when their computers are off. So there is no time to test anything new.
Ah but, they could build a test system. What? to emulate mortgages, forex, loans, credit cards, international transactions? Far too complex to model a ‘miniature’ version of the World and include the complexities. Never mind the cost IF you could.
So what do they do now?
Go to church regularly and make generous offerings.
What can be done?
Nothing. The current system is doomed.
OK smarty – Your answer?
Bitcoin will be the future of banking, but not in the way you think. Bitcoin is ‘Almost there’ and requires almost no investment in complicated checks and balances computer systems as the ‘ledger’ is built in. The delay is two fold. One is in refining the blockchain and keeping it under control of the bank (so fees can be extracted) and the other is in cracking the encryption so the tax authorities can steal their share of each transaction.
With this new ‘money’ tax avoidance for the middle classes and the poor is enshrined and unavoidable.
Fees are ‘baked in’and unable to be bypassed as ‘That is the way the system works’.
Paper money will be reserved for the wealthy to exchange ‘Tokens of value’ between themselves as the great unwashed are paid from the official purse.