Vietnam securities firms urged to strengthen cybersecurity after VNDirect hack

The State Securities Commission (SSC), Vietnam’s stock market watchdog, has instructed securities companies to enhance cybersecurity following a ransomware attack on VNDirect Securities that left the leading broker unable to restore its trading system.

The attack was launched by an international organization, paralyzing VNDirect, which is among the 10 largest brokers in the country. The recovery would take longer than expected given the huge amount of data involved, the firm said.

The mishap has forced both the Ho Chi Minh and Hanoi stock exchanges to disconnect from VNDirect since Monday.

In a dispatch on Monday, the SSC urged brokerage houses to scan their IT infrastructure, particularly securities trading systems, to promptly mend loopholes. In addition, they were advised to revise their backup data and build contingency plans against cybersecurity threats.

Related reports must be sent to the SSC by April 1.

Talking to The Investor, Nguyen The Minh, head analyst at Yuanta Securities Vietnam, said that a securities firm usually has a backup system to ensure continuity and safeguard data. This helps secure data if the system is breached.

If a system is compromised, customers’ assets are safe as their stocks are secured on the Vietnam Securities Depository’s system, while cash is stored in bank accounts.

However, customer data can be exposed, so securities companies need to take responsibility for keeping customers’ accounts safe.

Minh said that several securities companies were planning to synchronize their systems, leading to the risk of collapsing altogether. At Yuanta Securities, data is separated and secured in blocks for minimal risks.

A securities company executive who declined to reveal his identity commented that the VNDirect hack will negatively affect investor sentiment, especially VNDirect customers who cannot trade shares when the market enters turbulence.

“This undermines their rights. The question is who will take responsibility,” he noted.

For this to happen at VNDirect is a surprise because it is known for its solid IT infrastructure and cybersecurity, he added.

The VN-Index, which tracks the Ho Chi Minh Stock Exchange, is trading up 0.4% at 1,273 points at 10:15 a.m. (local time). The gauge closed down 1.1% on Monday.