Financial Institutions Globally Lost $12 Billion to Cyberattacks in The Past 20 Years – IMF
According to the International Monetary Fund (IMF), Financial institutions have lost $12 billion to cyberattacks over the last 20 years.
This was disclosed in a report titled ‘Global Financial Stability Report, April 2024’. Out of the $ 12 billion, financial institutions have incurred a loss of $2.5 billion since 2020.
The IMF highlighted the financial sector’s high vulnerability to cyber risks, noting that approximately one-fifth of cyber incidents in the past two decades have impacted the financial industry. Banks are identified as the primary targets, followed by insurers and asset managers.
Financial firms have reported significant direct losses, totaling almost $12 billion since 2004 and $2.5 billion since 2020. IMF said.
The International organization further stated that financial institutions in advanced economies, particularly in the United States, have been more exposed to cyber incidents than firms in emerging markets and developing economies.
It cited JP Morgan Chase, for example, the largest US bank, which is reportedly experiencing 45 billion cyber events per day while spending $15 billion every year and employing 62,000 technologists, many focused on cybersecurity.
Cyber incidents, IMF said, are key operational risks that could threaten the operational resilience of financial institutions and hurt overall macroeconomic stability.
“A cyber incident at a financial institution or at a country’s critical infrastructure could generate macro-financial stability risks through three key channels: loss of confidence, lack of substitutes for the services rendered, and interconnectedness (Adelmann and others 2020),” IMF said.
The IMF further urged Central Banks and authorities to develop an adequate national cybersecurity strategy accompanied by effective regulations and supervisory capacity.
