The International Monetary Fund (IMF) has disclosed that financial institutions worldwide have lost to$12 billion due to cyberattacks over the past 20 years.
This revelation comes from the IMF’s recent report, Global Financial Stability Report, April 2024, which highlights the significant vulnerabilities faced by the financial sector in the realm of cybersecurity.
The report indicates that since 2020, financial institutions have incurred losses of $2.5 billion due to cyber incidents.
The IMF further underscores the high susceptibility of the financial sector to cyber risks, noting that approximately one-fifth of cyber incidents over the past two decades have impacted financial institutions, primarily targeting banks, insurers, and asset managers.
The United States, home to several major financial institutions, faces heightened exposure to cyber risks. For example, JP Morgan Chase, the largest US bank, experiences a staggering 45 billion cyber events daily and invests $15 billion annually in cybersecurity efforts, employing 62,000 technologists, many focused on security.
Cyber incidents are considered major operational risks that threaten the resilience of financial institutions and can have broader macroeconomic repercussions.
The IMF warned that these incidents could jeopardize financial stability through loss of confidence, disruptions in essential services, and the interconnectedness of the financial system.
To counter these risks, the IMF urges central banks and relevant authorities to develop comprehensive national cybersecurity strategies and establish effective regulations and supervisory measures.
As cyber threats continue to evolve, the need for robust cybersecurity infrastructure is paramount for the protection and stability of the global financial system.
