The Australian Securities and Investments Commission (ASIC) has stepped up its surveillance of cyber crime this year in a bid to keep pace with the growing digitisation of the financial services industry.

ASIC will invest more in digital forensics capabilities and training its forensic analysts, its enforcement report for last July-December says.

“The increasing incidence, complexity and reach of malicious cyber activities can undermine businesses and destabilise our markets, eroding investor and financial consumer trust and confidence in the financial system and the wider economy,” it says.

“We will take appropriate enforcement action by accepting enforceable undertakings or issuing infringement notices where we identify wrongdoing – for example, where disclosure by companies and issuers provides insufficient information on cyber threats.

“As technology continues to replace traditional methods of investing, the likely increase in the incidence of cyber crime means ASIC and other law enforcement agencies will focus on activities that ensure investors and consumers continue to be protected.”

The volume of electronic forensic data received by the regulator has increased steadily from less than 40 terabytes at the start of 2013 to more than 120 terabytes last year.

ASIC expects the figure to rise to 425 terabytes of data per year by 2020. One terabyte is equivalent to about 1000 gigabytes.

“The increasing volume of data means traditional review methodologies based on targeted keyword searches and manual review are becoming less effective and efficient.

“ASIC is increasingly adopting smarter strategies that use tools such as predictive coding, machine learning and computer algorithms.”

The regulator secured $149 million in compensation and remediation for consumers and investors in the second half of last year, the enforcement report shows.

It removed 27 individuals from financial services, laid 42 criminal charges, charged six in criminal proceedings and issued 20 infringement notices.