The International Monetary Fund (IMF) has warned that the increasing number and cost of cyberattacks could destabilize economies leading to bank runs. The knock-on effects of dealing with cyberattacks, such as reputational and financial losses, can spill over onto clients and other businesses, disrupting critical services.
The increasing reliance on third-party security providers over in-house teams is further exacerbating the problem, as a successful breach on a third-party could affect a significant number of businesses.
Heightening geopolitical tensions could also prompt state-backed hackers to target the biggest companies in order to weaken national economies and overall stability.
One cyber attack could topple the dominoes
Malicious cyber threats seem to be growing at an exponential rate, and the costs are rising too. In the US alone, the financial sector has lost $12bn as a result of cyber incidents, with banks bearing the brunt, accounting for almost half of all financial industry cyber incidents since 2004.
According to a survey carried out by the IMF, the policies, frameworks and supervisory bodies dealing with cyberattacks are insufficient and do not account for their widespread effects outside of the targeted company.
The IMF recommends that governments, particularly those in emerging markets or developing countries, should develop robust national cybersecurity strategies that regularly review the security landscape, provide cybersecurity expertise to business leaders, set standards of cyber hygiene, and prioritize information sharing between industry participants to improve 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 mitigate against the potential impact of these threats.”
“To truly improve cyber resilience in the financial sector, organizations need to upskill all employees, including board members and C-Suite executives. Regular and measured real-life cyber crisis simulations and drills will ensure people have the right knowledge, skills, and judgement across the entire organization to defend against a cyberattack,” Breen concluded.
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