Cyber And The City: Securing London’s Banks In The Computer Age

Description

Cyber security is the greatest risk faced by financial institutions today. Ever since the major London banks purchased their first computers in the early 1960s, they have had to balance their dependence on those machines with the need to secure their operations and retain the trust of their customers. Technological change in the second half of the 20th century prompted UK banks to reevaluate their function as trusted protectors of wealth. In the City of London, historically the capital's business and commerce hub, the huge clearing banks employed newly commercialised computers—the processing power of which could transform the highly clerical clearing and settlement process. What unfolded over the following three decades was a relentless modernisation drive. Revolutionising and permanently altering the speed and scale at which the UK’s financial sector functioned, this rapid modernisation thrust computer (hardware and software) security into the consciousness of bank executives and clients alike. Focusing on the period 1960 to 1990, this book uses newly released and previously unexplored archival material to trace the origins of cyber security in the UK financial sector. Acknowledgements Contents Chapter 1: Introduction Security and Trust “Cyber” in Context Modernisation Drive Automation and Security Computer Security and History Early Computer Security Consolidation Networked Dependency Consistency City Security in Context Chapter Outline Questions Research Methods & Sources Chapter 2: The London Clearing Banks and Computer Security: 1960–1977 War and Automation Committee of London Clearing Bankers Computerisation in Banks Practicalities Progression Future Ambition Difficulties The Bank of England’s Computers Bank of England & Private Sector Whitehall The Actualities of Automation Security & Vulnerability Mitigating Risk The Threat from Outsiders Internal Auditing: Learning from America The Banker-Customer Relationship Code of Conduct Conclusion Chapter 3: BACS: 1971–1980 “What Are the Advantages?” Rotating Inspections Operations Security Access Control 1974: Progress? Contingency Centre Awareness Access Controlled? Growth & Security Through the Roof? Assuming Greater Importance Technicality & Security Investment in Security Defending Two Fronts Developing Trust Chapter 4: SWIFT: 1972–1984 Motivation SWIFT: Case Study in International Collaboration Scoping the Project Security in Development Security and Cryptography Discussion & Dissent Approaching Launch External Audit Progress? SWIFT in Operation: Breakdowns Ongoing Security Fraud Integrity Problem Continuous Threats Chapter 5: Consolidating Growth: 1978–1985 The Potential for Fraud Government Takes Notice Government and Industry Data Context: Wider Impacts of Technology Dependency and Contingency Midland: Contingency Speed of Change Midland Bank: Midnet Bank of Scotland: Computer Network Trustee Savings Bank: Computer Network Primed for Innovation Chapter 6: CHAPS: 1972–1984 CHAPS Structure Sub-Chapter One: 1972–1975 Origins of CHAPS: Competition CHAPS: European Competition SOVEREIGN CHAPS: Early Development Reassurance for Banks Security & Control in CHAPS Logica: Physical Security Security Versus Cost Rising Costs vs. Security Decision Time Sub-Chapter Two: 1976–1979 Payment Notification Physical & Technological Security A Security Assessment System Security Data Integrity System Resilience & Fall-Back Contingency Encryption Fraud Sub-Chapter Three: 1980–1985 CHAPS II Continuity CHAPS in Banks The CHAPS II System CHAPS II: Implementation Security and Reliability Reception Early Failures CHAPS Uses Conclusion Chapter 7: Hacking It: 1985–1995 Managing the Press Impenetrable Planning for the Inevitable Technological Advancement Barclays: Security Snapshot Barclays: Protective Measures Barclays: Software Taking Stock Computer Viruses Doomsday Scenarios Entrenched Understanding Computer Security as a Business Fundamental Conclusion Defining Computer Security Perceived Threats Mitigation Measures Wider Considerations Further Research Contemporary Relevance Bibliography Archival Material Barclays Files: Bank of England Files: HSBC Files: Lloyds Files: London Metropolitan Archive Files: Royal Bank of Scotland Files: The National Archives Files: Published Sources Journal Articles Chapters in Edited Collections Newspapers & Magazines Online Sources Other