Financial Crime World

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Cyber-Attacks on Financial Institutions in Mauritius Reach Alarming Levels

Unprecedented Threat to Mauritian Financial Sector

PORT LOUIS, MAURITIUS - The Mauritian financial sector is facing an unprecedented threat from cyber-attacks, with incidents more than doubling since the COVID-19 pandemic. According to a recent report by the International Monetary Fund (IMF), the financial sector is uniquely exposed to cyber risk, with attacks accounting for nearly one-fifth of all reported breaches.

Devastating Consequences

The consequences of such attacks can be devastating, causing funding problems and even threatening the solvency of affected institutions. The IMF estimates that extreme losses from cyber incidents have more than quadrupled since 2017, reaching a staggering $2.5 billion.

Impact on Mauritius’ Financial Sector

In Mauritius, where the financial sector is a key driver of economic growth, the impact of cyber-attacks can be particularly severe. A severe incident at a local bank or financial institution could undermine trust and lead to market selloffs or even runs on banks.

Recent Examples of Cyber-Attacks

The report highlights several examples of recent cyber-attacks that have disrupted critical services and caused significant economic damage. For instance:

  • In December 2023, the Central Bank of Lesotho was targeted in an attack that disrupted the national payment system, preventing transactions by domestic banks.
  • A 2023 ransomware attack on a cloud IT service provider caused simultaneous outages at 60 US credit unions.

Systemic Risks

The increasing reliance on third-party IT service providers has also heightened concerns about systemic risks. For instance:

  • The same 2023 ransomware attack on a cloud IT service provider mentioned above.

Mitigating Risks

To mitigate these risks, policymakers and regulators are urging financial institutions to prioritize cybersecurity. This includes:

  • Developing adequate national cybersecurity strategies
  • Encouraging cyber “maturity” among firms
  • Improving cyber hygiene
  • Prioritizing data reporting and collection of cyber incidents

International Cooperation

International cooperation is also crucial in addressing the growing threat of cyber-attacks on financial institutions. The IMF has offered policy advice and capacity-building activities to help member countries strengthen their cybersecurity frameworks.

Call to Action

As the Mauritian financial sector continues to grapple with this growing threat, it is essential that authorities, regulators, and financial institutions take swift action to enhance resilience and mitigate the risks associated with cyber-attacks.