Your Share Registry is a Neglected Point of Vulnerability. Here’s How to Protect 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. 

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: Built using scalable, flexible cloud infrastructure that enables applications to run seamlessly across environments, cloud-native systems eliminate the "blind spots" of patchwork legacy setups and ensure security controls are consistent across the entire platform. True cloud-native platforms also significantly reduce, and in many cases remove, the need for scheduled maintenance downtime, minimising operational disruption and reducing the risk of exposure during maintenance windows. 

• AI-Driven, real-time fraud detection: AI-driven, near real-time fraud detection, supported by human oversight, helps detect anomalies such as unusual voting or ownership patterns before damage occurs.

• Verifiable, enterprise-grade protection: A provider's security claims must be backed by robust, global best-practice certifications. ISO 27001 is a strong indicator of security maturity, alongside complementary frameworks such as SOC 2 or ISO 27701. 

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.