Financial Crime World

Gabon’s Finance Sector Exposed to Rising Cybersecurity Risks

Cyber attacks have more than doubled since the pandemic, leaving Gabon’s financial sector increasingly vulnerable to extreme losses. According to a recent report by the International Monetary Fund (IMF), the risk of such losses has quadrupled since 2017, with potential funding problems and even solvency risks for companies.

The Financial Sector at Risk

The financial sector in Gabon is particularly exposed to cyber attacks, given its handling of sensitive data and transactions. Banks are most at risk, accounting for nearly one-fifth of all cyberattacks, making them a prime target for criminals seeking to steal money or disrupt economic activity.

  • Incidents in the financial sector could have far-reaching consequences, eroding confidence in the system, disrupting critical services, and causing spillovers to other institutions.
  • A severe incident at a financial institution could lead to market selloffs or runs on banks, while disruptions to payment networks could severely impact economic activity.

Third-Party Risks

The report highlights the increasing reliance of financial firms on third-party IT service providers, which can improve operational resilience but also expose the industry to system-wide shocks. The 2023 ransomware attack on a cloud IT service provider, which caused simultaneous outages at 60 US credit unions, is a stark reminder of this risk.

Addressing Growing Cyber Risks

To address these growing cyber risks, policymakers and regulators must keep pace with the increasing digitalization and geopolitical tensions facing the global financial system. However, an IMF survey of central banks and supervisory authorities reveals that cybersecurity policy frameworks in emerging market economies like Gabon often remain insufficient.

  • The report recommends that authorities develop a national cybersecurity strategy accompanied by effective regulation and supervisory capacity to strengthen resilience in the financial sector.
  • This includes:
    • Periodically assessing the cybersecurity landscape
    • Encouraging cyber maturity among firms
    • Improving cyber hygiene
    • Prioritizing data reporting and collection of cyber incidents
    • Promoting international cooperation

International Cooperation

As attacks often emanate from outside Gabon’s borders and proceeds can be routed across borders, international cooperation is crucial to addressing cyber risk successfully. While cyber incidents will occur, it is essential for the financial sector to have the capacity to deliver critical business services during disruptions.

  • Financial firms should develop and test response and recovery procedures
  • National authorities should have effective response protocols and crisis management frameworks in place

IMF Support

The IMF actively helps member countries strengthen their cybersecurity frameworks through policy advice and capacity-building activities. As Gabon’s finance sector continues to grapple with the growing threat of cyberattacks, it is essential that policymakers take proactive steps to address these risks and ensure the stability of the financial system.