Cybercrime Threatens Financial Stability in Slovakia, Experts Warn
As Slovakia’s reliance on digital banking and payments continues to grow, so does the threat of cyberattacks. According to recent statistics, the number of cybercrimes has tripled over the past decade, with financial services being the most targeted industry.
Consequences of a Successful Attack
A successful attack on a major Slovakian financial institution could have far-reaching consequences, including:
- Widespread disruption
- Loss of confidence in the entire financial system
- Transactions failing
- Household and companies losing access to deposits and payments
- Investors and depositors demanding their funds back
The Proliferation of Hacking Tools
The increasing use of mobile-based services in Slovakia has also increased opportunities for hackers to target large and small institutions alike. The proliferation of hacking tools has made it easier for lower-skilled hackers to cause significant damage at a fraction of the previous cost.
Regulatory and Public Policy Intervention Needed
While financial institutions are responsible for maintaining strong cybersecurity measures, experts argue that individual firm incentives are not enough to combat cybercrime. Regulation and public policy intervention are necessary to prevent underinvestment in cybersecurity and protect the broader financial system from the consequences of an attack.
IMF Recommendations for Strengthening Cybersecurity
In a recent report, the International Monetary Fund (IMF) outlined six major strategies to strengthen cybersecurity and improve financial stability worldwide:
- Mapping key operational and technological interconnections
- Converging regulation across countries
- Building capacity to respond to attacks
- Increasing willingness to share information on threats and responses
- Strengthening deterrence measures
- Developing cybersecurity capacity in low-income countries
Slovakia’s Readiness for Cyberattacks
The IMF has identified Slovakia as one of the countries that is not yet ready to manage cyberattacks effectively, and international coordination is still weak. To address these gaps, the IMF is focusing its efforts on providing capacity development to financial supervisors in low-income countries and bringing their issues and perspectives to international policy discussions.
Collaboration Needed
The Slovakian government and financial institutions must work together to strengthen cybersecurity measures and protect against the growing threat of cybercrime. This requires a collaborative effort from:
- Standard-setting bodies
- National regulators
- Supervisors
- Industry associations
- Private sector
- Law enforcement
- International organizations