BaFin Urges Stronger Encryption to Protect Financial Data by 2030

Germany’s financial watchdog BaFin is urging financial firms to upgrade encryption on particularly critical systems by 2030. BaFin President Mark Branson outlined the recommendation at a conference in Berlin on November 10, where he also announced plans to expand the regulator’s cybersecurity team and conduct shorter, targeted audits.

The risk for investors is that sensitive data stolen today could be exposed years later. The Deutsche Bundesbank says attackers can store encrypted records and try to read them once powerful enough quantum computers become available. Financial records that need to stay confidential for years are particularly exposed.

How other regulators are responding

The Monetary Authority of Singapore has proposed that financial institutions upgrade critical systems by the end of 2030 and remaining systems by the end of 2034. The Hong Kong Monetary Authority has released a toolkit to help banks identify which systems they need to upgrade and which suppliers they depend on. The UK’s Financial Conduct Authority has urged firms to start preparing now, citing national guidance that recommends completing high-priority upgrades by 2031.

Investor warning

If a message asks you to reset your trading password, share a verification code or transfer funds because of a security upgrade, verify the request through your broker’s official app or a contact number you already trust. For questions about a broker or a suspicious investment offer, visit BrokersView.

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