Home > News > Pensions > Cybersecurity Breaches at UK Pensions Soar More Than 4,000% in 1 Year
Pensions

Cybersecurity Breaches at UK Pensions Soar More Than 4,000% in 1 Year

The number of reported attacks on all British financial firms triple, with the pension sector seeing the biggest increase.

By Michael Katz




Cybersecurity breaches reported by British financial services companies more than tripled in the 12-month period ending June 30, with the pension sector reporting the biggest increase at 4,000%, according to research from international law firm Reynolds Porter Chamberlain.

Citing data from the British Information Commissioner’s Office, the law firm stated that U.K.-based financial companies reported 640 cybersecurity breaches between June 30, 2022, and June 30, 2023, up from 187 during the same period from 2021 to 2022. Among those, pension plans reported to the ICO a total of 246 cybersecurity breaches, up from just six during the previous 12-month period.

According to RPC, hackers go after pension plans because they hold an enormous amount of valuable, sensitive financial data, which makes them potentially vulnerable to ransom demands. The firm added that pension plans—trustees in particular—can be held liable for a failure to manage digital risk appropriately, noting that The Pensions Regulator holds trustees accountable for the security of a plan’s information and assets—even if they are outsourced.

“Cybersecurity is fundamental to pension scheme trustees’ legal duties,” Richard Breavington, partner and head of cyber and tech insurance at RPC, said in a release. “It’s a cause for concern that so many financial services firms, especially pension schemes, have suffered some form of cyber-attack, resulting in a data breach.”

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Breavington added that “the assumption might sometimes be that major financial services businesses have robust cyber defenses so that they are impervious—that certainly hasn’t stopped hackers continuing to try.”

According to the U.K.’s Department for Science, Innovation and Technology, because the most common cybersecurity threats are relatively unsophisticated, government guidance advises businesses and charities to protect themselves using what it calls “cyber hygiene” measures. This includes a broad range of measures, the most common of which are updated malware protection, cloud back-ups, passwords, restricted administrative rights and network firewalls.

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Home > News > Pensions > Alecta Board Chair Ingrid Bonde Resigns
Pensions

Alecta Board Chair Ingrid Bonde Resigns

The Swedish pension fund fired its CEO and replaced its head of equities earlier this year after losing $2 billion from the collapse of Silicon Valley Bank.

By Matt Toledo



Alecta, Sweden’s largest pension fund, announced that the chairman of its board, Ingrid Bonde, has stepped down. Bonde’s resignation comes as Alecta faces scrutiny over recent investment losses. Jan-Olof Jacke will serve as interim chairman until a replacement is found.

“In a situation where there has been too much focus on my person, I have decided to resign,” Bonde said in a statement in Swedish. “With new CEO and new management personnel on their way in, Alecta is well equipped for its challenges. I now need to devote my time and energy to my family and my other assignments.”

Earlier this year, Alecta revealed it lost 19.6 billion Swedish kronor ($1.9 billion) from its investments in Silicon Valley Bank, First Republic Bank and Signature Bank, which collapsed in March. The fund’s losses resulted in Sweden’s Financial Supervisory Authority opening an investigation of the fund’s risk-taking. Another probe is investigating Alecta’s investment into property company Heimstaden Bostad.

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Bonde is one of several Alecta executives to resign or be fired this year. Magnus Billing, the fund’s former CEO was fired in April due to scrutiny of Alecta investments. The banking crisis fallout also led to the removal of Liselott Linn, head of equities. In June, Henrik Gade Jepsen, Alecta’s head of asset management, resigned.

As chair, Bonde oversaw the replacement of those positions, including the June hiring of new CEO Peder Hasslev, the August selection of Pablo Bernengo as the fund’s new head of asset management and the September announcement of Magnus Tell as the new equity manager.

Alecta first opened a position in Signature Bank in 2016. The fund invested in SVB and First Republic in 2019. By 2022, Alecta was the fifth largest shareholder of SVB and First Republic and the sixth largest shareholder in Signature Bank, according to data from Bloomberg.

Alecta manages pensions for 2.6 million individuals and 35,000 companies in Sweden, according to its website. The fund currently has 1.1 trillion Swedish kronor ($101 billion) in assets under management. Alecta’s losses from its holding in SVB and other failed banks were roughly 2% of the fund’s holdings at the time.

“The investments in U.S. banks were a failure,” said Katarina Thorslund, then acting CEO, earlier this year.

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Alecta Fires CEO as Fallout Continues From $2 Billion Banking Losses 

Alecta Replaces Equities Head in Wake of US Banking Losses 

 

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