Cyberattacks on financial firms have doubled since the pandemic, with losses reaching $2.5 billion. Developing effective cybersecurity strategies, cooperation, and regulation is crucial to address cyber risk successfully.
Cyberattacks on the Rise
The number of cyberattacks has more than doubled since the pandemic began, with some companies experiencing heavy tolls from these incidents. For instance, Equifax paid over $1 billion in penalties following a major data breach in 2017 affecting millions of consumers.
Financial Sector Impact
- Financial firms have seen a significant increase in cyberattacks, with losses skyrocketing to $2.5 billion. It is crucial for these firms to prioritize cybersecurity strategies, regulations, and international cooperation to mitigate risks effectively.
- To bolster resilience in the financial sector, authorities should focus on assessing the cybersecurity landscape, promoting cyber maturity among firms, and encouraging data reporting and sharing among sector participants.
Risk to Financial Stability
The financial sector faces unique exposure to cyber risk, with attacks potentially leading to funding issues and solvency problems for companies. Incidents in this sector can threaten economic stability by eroding confidence, disrupting critical services, or causing spillovers to other institutions.
Source : Financial stability is at risk with increasing cyber threats