Your Share Registry is a Backdoor for Cyber Attacks. Here’s How to Lock It.

In late 2024, share registries came under intense fire. ASIC issued an investor alert warning of a “significant increase” in stolen-share incidents linked to identity theft. Many victims only discovered the fraud after receiving unexpected confirmation letters from share registries or CHESS. ASIC data show reports of share-sale fraud have risen seven-fold in just four years. Globally, the trend is even more alarming. In the first half of 2024, reported investment fraud attempts spiked by 76 per cent, with losses exceeding £649 million in the UK alone. While many organisations strengthen their primary systems, the registry remains an overlooked and highly vulnerable backdoor for attackers. This article explains why legacy registries are a critical risk and how to build a modern, unified defence. 

The CIO’s nightmare: why patchwork systems create a sprawling attack surface 

The core problem with legacy systems is their fragmented nature. They often consist of “fragmented systems stitched together over time, with inconsistent integration and no centralised security control". This patchwork architecture creates critical vulnerabilities. 

• Governance Blind Spots: A lack of centralised control makes it difficult to detect or even identify threats in a timely manner. 

• Windows of Opportunity: "Data drift" between out-of-sync systems creates lags that are prime opportunities for attackers to exploit during periods of reconciliation. 

Building a unified defence: the three pillars of modern registry security 

A modern, secure registry is built on three key pillars that directly address the weaknesses of legacy systems. 

• Centralised, cloud-native architecture: This eliminates the "blind spots" of patchwork systems and ensures security controls are consistent across the entire platform. True cloud-native platforms also eliminate the scheduled maintenance downtime that plagues older systems, meaning no planned security gaps. 

• AI-Driven, real-time fraud detection: Advanced platforms use artificial intelligence to monitor for suspicious activities as they happen. From unusual voting patterns to potential beneficial ownership manipulation, this allows you to mitigate threats proactively, not after the damage is done. 

• Verifiable, enterprise-grade protection: A provider's security claims must be backed by robust, global best-practice certifications. Look for ISO 27001 for Information Security Management as a key indicator of a provider's commitment to security. 

The business case: protecting reputation and shareholder trust 

Cybersecurity is a core business issue, not just an IT problem. A security breach via the share registry can have significant consequences, including financial loss, downtime, reputational damage, and the erosion of shareholder trust and confidence. Protecting this sensitive data is fundamental to good corporate governance. 

Conclusion: modernisation is no longer optional 

As digital threats continue to evolve, relying on outdated registry infrastructure is an unacceptable risk. Securing this critical function is a fundamental responsibility for the entire leadership team. A modern, secure registry isn't an optional upgrade; it's a foundational component of corporate risk management.