ANZ (ASX:ANZ) share price gains amid cybersecurity audit rumours

The bank has disputed reports it's experienced major security breaches.

| More on:
the back profile view of a man in a darkened room sitting in front of multiple computer screens, implying illegal hacking activity.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Australia and New Zealand Bank Group Ltd (ASX: ANZ) share price is gaining amid reports the bank hired external auditors after major security breaches.

According to The Age, some former employees of the bank were able to continue to access the bank's internal systems despite their contracts ending.

However, ANZ disputed the reports. In a statement, an ANZ spokesperson said, "[T]here have been no material breaches related to ANZ employees or contractors that have left the bank."

At the time of writing, the ANZ share price is $28.28, 0.14% higher than its previous closing price.

That's in line with the broader market's movements today. Right now, the S&P/ASX 200 Index (ASX: XJO) and the All Ordinaries Index (ASX: XAO) are both up 0.2%.

Let's take a closer look at the rumours facing Australia's third-largest bank by market capitalisation.

ANZ faces reports of security breaches

The ANZ share price is holding its position on the ASX on Tuesday. Meanwhile, rumours are swirling the bank is struggling to retain security as its technology ages.

The Age cites unnamed sources as claiming former employees and previously-contracted technology developers located offshore have managed to evade the bank's automated security controls.

The publication also pointed to a disclosure report from 2020 that noted the bank called upon auditor KPMG to test the bank's technological defences. Additionally, The Age reported PwC has been working on improving ANZ's "approach to identity management".

Further, the bank recently looked to onboard information technology specialists to work on identity and access management.

An ANZ spokesperson disputed the reports, saying cyber security is one of the bank's top priorities:

ANZ has automated processes that terminate critical system access when staff members or contractors leave ANZ. This process has been tested and audited by both internal and external teams and found to be effective…

We invest in sophisticated capability including an in-house 24/7 Security Operations Centre and a range of monitoring and analysis tools and continue to upgrade these capabilities in line with changing threats.

ANZ share price snapshot

It is unlikely the ANZ share price has moved due to today's headline. In fact, the bank's stock has been having a great run lately.

It is currently trading for 24% more than it was at the start of 2021. It's also 45% higher than it was this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Bank Shares

Woman and man calculating a dividend yield.
Bank Shares

Is the ANZ share price a buy right now?

Should investors be attracted to the major bank?

Read more »

stockmarket graphic in background with man looking at stockmarket on phone
Bank Shares

Which of the big four bank shares have doubled in the last 5 years?

These two blue-chip bank shares have risen above the rest in recent times.

Read more »

Couple looking at their phone surprised, symbolising a bargain buy.
Bank Shares

Wondering if CBA shares are overvalued? This shocking metric proves it

You won't see CBA in the same light after seeing this.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Bank Shares

Macquarie share price higher amid DRP dividend news

Macquarie has announced the share price of stock to be allocated through its dividend reinvestment plan.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop.
Bank Shares

CBA shares are now worth a total of more than $300 billion. Here's why that's a problem

CBA’s ever growing stock market dominance is raising red flags. But why?

Read more »

An excited man stretches his arms out above his head as he reaches a mountain peak.
Record Highs

Breaking: CBA shares hit a new record of $180

CBA shares can't possibly keep rising can they?

Read more »

A small child in a judo outfit with a green belt strikes a martial arts pose with his hand thrust forward.
Bank Shares

Forget the big 4 banks, Macquarie tips 11% upside for this ASX All Ords Financials stock

This broker is telling investors to look beyond CBA.

Read more »

View of a business man's hand passing a $100 note to another with a bank in the background.
Bank Shares

What price should I pay for the Big 4 banks?

Macquarie has updated its target price on Australia’s Big 4 banks.

Read more »