The Intermediary –- June 2026 - Flipbook - Page 38
TRUST
UNDER
THREAT
AS THE MARKET BECOMES MORE
SOPHISTICATED, SO TOO DO THE CYBER RISKS
by Jessica O’Connor
Cybersecurity was once largely viewed as a
standalone IT problem. It sat behind the scenes,
hidden away in dark server rooms, and rarely
financial services firms are increasingly
made its way into boardroom discussions or
sophisticated. Yet in a market founded on trust,
client conversations. That is rapidly changing.
As the mortgage market becomes smarter and
increasingly digital, more sensitive information
cybersecurity presents both a challenge and
an opportunity.
While the consequences of a security breach
is moving between brokers, lenders, conveyancers,
can be severe, those that invest in resilience and
technology providers and customers than ever.
robust data protection are increasingly finding
Cloud-based platforms, open application
programming interfaces (APIs), automated
that cybersecurity can become a competitive
advantage. Simply protecting systems is no
workflows and artificial intelligence (AI) are
longer enough. The focus is now on safeguarding
helping firms streamline their back-end
outcomes and earning the confidence of clients
processes and improve frontline customer
in an increasingly fraught digital landscape.
experiences. Yet, they are also creating
new opportunities for criminals to exploit
Smarter scams
market weaknesses.
The stereotype of the cybercriminal lurking
The mortgage industry presents a particularly
attractive target. Transactions involve significant
behind poorly written emails, suspicious
hyperlinks and offers of a surprise inheritance is
sums of money, not to mention extensive
becoming increasingly outdated. While phishing
personal and financial information. A successful
remains one of the most common forms of
attack, whether perpetrated on the broker firm
attack, advances are making scams significantly
or directly on the customer, can result in severe
harder to identify.
financial losses for both parties, as well as
Richard Howes, managing director of Paradigm
causing irreparable reputational damage and
Mortgage Services, says: "The cyber risks that
regulatory consequences.
concern us most for brokers right now are not
Perhaps most importantly, security breaches of
this nature can also undermine the trust that sits
at the very heart of the advice process.
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From phishing attacks and AI deepfakes to
manipulated documents, the threats facing
The Intermediary | June 2026
necessarily the most technically sophisticated.
“Phishing […] is becoming harder to detect.
With AI-generated content now capable of
