In our capitalistic society, money rules. The financial services industry deals with our money, so what affects them affects us all, for better or for worse. And this news should get all of the multimillionaires and billionaires on financial corporation boards to stand at attention.
The International Monetary Fund (IMF) believes that cyberattacks could eventually cost banks up to half of their overall profits. That could be collective trillions of dollars – I cannot even grasp the magnitude of it.
There has yet to be a cyberattack which cripples a bank’s daily operations at a large scale. But there have been major attacks on cryptocurrency exchanges where funds have been stolen, such as the $32 million attack on Bithumb and the $500 million attack on Coincheck.
Data breaches are increasing in frequency, and banks risk leaking sensitive data, damaging their reputations as safe places to do business, and litigation from other parties which may be harmed.
The IMF speculates that there could soon be a massive or sophisticated cyberattack on a conventional financial institution which could cripple their operations at some point in the future. When banks can’t go about their usual business, that definitely results in a loss of revenue.
Because the financial sector plays a key role in intermediating funds, the IMF believes they’re at major risk of cyberattack. Money is one of the top motivations for cyberattacks, and banks are very, very powerful, so they are potentially lucrative targets.
What’s concerning is that it’s difficult to model the cyber risks that banks face. There isn’t enough clear data on the costs of financial sector cyberattacks. A lot of the costs can be difficult to measure – reputational damage isn’t usually something an accountant can put an exact figure on in a ledger. So, the quantitative analysis of (Read more...)
*** This is a Security Bloggers Network syndicated blog from Cylance Blog authored by Kim Crawley. Read the original post at: https://threatvector.cylance.com/en_us/home/imf-cyber-attacks-cost-banks-half-of-their-profits.html