IMF decries attacks on financial institutions, says 56% of central banks lack cyber security strategies
CHIGOZIE AMADI
International Monetary Fund (IMF) has disclosed that 56 percent of central banks or supervisory authorities do not have a national cybersecurity strategy.
IMF noted that cyber attackers persistently target the financial sector, hence the need for a concrete strategy in the industry.
The was contained in a report by the international institution after carrying out a survey on 51 countries. The report was titled —‘mounting cyber threats mean financial firms urgently need better safeguards.’
It stated that 42 percent of the financial institutions lack dedicated cybersecurity or technology risk-management regulations, and 68 percent do not have a specialised risk unit within their supervision department.
Also, 64 percent do not mandate testing and exercising cyber security measures or providing further guidance. 54 percent lack a dedicated cyber incident reporting regime, and 48 percent do not have cybercrime regulations.
“Due to the tight financial and technological interconnections within the sector, attacks can rapidly spread throughout the system, potentially leading to widespread disruption and loss of confidence. Cybersecurity is, therefore, a significant threat to financial stability,” the IMF said.
In its April 2024 Global Financial Stability Report, the IMF stated that $12 billion has been lost to cyber attacks in the last twenty years.
With this, the international financial body urged central banks to develop their national cybersecurity plan and implement laid down regulations to safeguard the sector.
“The fund’s recommendations include the development of robust national cyber strategies, the implementation of dedicated cybersecurity regulations, and the establishment of specialised risk units within supervisory authorities,” it advised.
