The International Monetary Fund warns that cyber attacks could lead to bank runs
The International Monetary Fund (IMF) has warned that the increasing number and cost of cyber attacks could destabilize economies, leading to bank runs. The knock-on effects of dealing with cyber attacks, such as reputational and financial losses, can spill over to customers and other businesses, disrupting critical services.
The increasing reliance on external security providers over internal teams further exacerbates the problem, as a successful third-party breach could impact a significant number of businesses.
Rising geopolitical tensions could also lead to state-backed hackers targeting the largest companies to weaken national economies and overall stability.
One cyber attack can topple the dominoes
Malicious cyber threats appear to be growing exponentially, and costs are rising too. In the US alone, the financial sector has lost $12 billion due to cyber incidents, with banks bearing the brunt, accounting for almost half of all cyber incidents in the financial sector since 2004.
According to an IMF study, the policies, frameworks and oversight bodies dealing with cyber attacks are inadequate and do not take into account their widespread effects beyond the targeted company.
The IMF recommends that governments, especially those in emerging markets and developing countries, should develop robust national cybersecurity strategies that regularly assess the security landscape, provide cybersecurity expertise to business leaders, set cyber hygiene standards, and prioritize information sharing among industry participants to improve safety. cyber preparedness.
Commenting on the IMF recommendations, Kev Breen, Senior Director of Threat Intelligence at Immersive Labs, said: “Knowing that a specific threat actor may be targeting banks with a DDOS is not the same as being prepared to respond or proactively assess the potential impact. soften. of these threats.”
“To truly improve cyber resilience in the financial sector, organizations must upskill all employees, including board members and C-Suite executives. Regular and measured real-life cyber crisis simulations and exercises will ensure that people across the organization have the right knowledge, skills and judgment to defend against a cyber attack,” concludes Breen.