Firms Must Remain Vigilant To Prevent Cyberattacks

By Zarul Effendi Razali and Siti Noor Afera Abu

KUALA LUMPUR, April 25 (Bernama) -- Businesses, including brokerage firms, must regularly conduct security assessments and cybersecurity penetration testing to detect potential vulnerabilities and prevent future cyberattacks, said LGMS Bhd executive chairman Fong Choong Fook.

He stressed that organisations must consistently identify possible weaknesses in their systems, including those from applications and end-user access points.

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“Businesses and brokerage firms need to change their mindset. Hackers no longer target specific industries—they will randomly attack all industries,” he said to Bernama.

LGMS is a global technology research and advisory firm, specialising in Technical Security Services (TSS) and Strategic Security Services (SSS) in cybersecurity.

Earlier in a joint statement, the Securities Commission Malaysia (SC) and Bursa Malaysia Bhd said they have received reports from a few brokers who identified failed client logins and unauthorised access or trading activities executed via limited clients’ online trading accounts.

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“Capital market regulators and brokers are on alert and remain vigilant while working closely to ascertain the root cause of the incident, and to implement any further necessary measures.

“We wish to assure all investors that the integrity of Malaysia’s capital market remains intact,” the statement said.

Commenting on this, Fong has urged the SC and Bursa to review the existing cyber risk management framework at a more granular level.

Meanwhile, SPI Asset Management managing director Stephen Innes said even though the recent cyberattack affecting trading accounts on Bursa Malaysia is a serious compliance concern for brokers, from an economic standpoint, it was a non-event.

“The impact is too micro to move the macro needle, with no bearing on Malaysia’s broader economic fundamentals.

“That said, the trust equation is fragile. Retail confidence takes a hit when trading accounts are hijacked and used to pump penny stocks. If regulators act swiftly with clear disclosures, tighten broker security protocols, and freeze suspicious profits, long-term damage can be contained,” he said.

However, Innes noted that if the response is slow or opaque, reputational fallout could linger, especially in a market that is still working to attract foreign capital.

-- BERNAMA